January 2025 Tax Update #2
2025 January Tax Update #2 Release Notes
Released: 2025-01-24
important
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You must be using ReadyPay and ReadyPay Services version 3.66.0.10 (or higher) to install this tax update.
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High Impact ticket in this update: Secure Act 2.0 deduction type annual limits have undergone further revision. See Dev. Ticket RPO-3048 for details.
Installation Instructions
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Stop all but one instance of the Ready Pay Process Server service on your classic Process Servers in your service bureau environment.
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SyncUP to Taslar to receive tax updates.
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Restart your ReadyPay process server(s).
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SyncUP RPO to ReadyPay to push the tax updates to RPO.
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Restart your RPO process server(s).
Release Notes
| Ticket | Release Notes |
|---|---|
| RPO-3048 | Deduction types for retirement accounts have been revised further. The changes are to comply with Secure Act 2.0 section 109 provisions. Specifically, the additional catch up for ages 60-63. Additional catch up for ages 60-63 has been added back to: 401k, 403b, 408k, 457b, Roth 401k, Roth 403b, Roth 457b, 457b ER Match The following "High Limit" deductions types are end-dated 06/30/2025: 401k HL, 403b HL, 408k HL, 457b HL, Roth 401k HL, Roth 403b HL, Roth 457b HL, 457b ER Match HL No changes have been made to: Simple, Simple 401k, Simple 401k HL, Simple Roth, Simple Roth HL, IRA, Roth IRA A deduction type has been added for: Simple HL N.B .: A future release of ReadyPay will have the ability to turn the additional age 60-63 catch up on or off without using a separate deduction type. |
| RPO-3056 | Federal 940 eFile rounding has been fixed. Previously, a rounding problem could cause the total liability on Schedule A to not equal the total tax amount. |
| RPO-3053 | IA W-2 eFile has been updated to the newest specs. |
| RPO-2972 | MA withholding tables have been updated for 2025. |
| RPO-3006 | MD withholding tables have been updated for 2025. Also, MD-ANN1 middle bracket rate has been updated to 0.03 for 2025. |
| RPO-3044 | MS withholding tables have been updated for 2025. |
| RPO-3054 | NM SUI and AST wage base is 33,200.00, effective 1/1/2025. |
| RPO-3062 | TurboTax mag media has been fixed. Previously, state RS records were missing. |