Skip to main content

January 2026 Tax Update #2

2026 January ReadyPay Tax Update #2 Release Notes

Version 3.74.0.18

Released: 2026-01-09

Updated: 2026-01-14 (added TAPS-1162)

Updated: 2026-01-15 (added TAPS-1164)

important

  • You must be using ReadyPay version 3.74.0.18 to get the tax updates.

  • We are still waiting for the IRS to approve our 2025 ACA changes. We will release a .NET Services update shortly thereafter that includes those changes

  • There are no high impact tickets in this update.

Install Instructions​

  1. Download the 2026JanTaxForms2.zip file from the bottom of this article.

  2. Unzip the 2026JanTaxForms2.zip file, which contains 5 tax form files (.PDF).

  3. Copy the 5 tax form file to your ReadyPay shared TaxForms folder, overwriting any existing files.

  4. Stop all instances of the ReadyPay .Net Process Server service in your service bureau environment.

  5. Stop all but one instance of the Ready Pay Process Server service on your classic Process Servers in your service bureau environment

  6. SyncUp to EarnIn Payroll to receive tax updates.

  7. Restart all classic and .Net process servers.

  8. SyncUP RPO to ReadyPay to push the tax updates to RPO.

  9. Restart your RPO process server(s).

Release Notes​

TicketRelease Notes
TAPS-1164Federal 940 MeF spec for 2025 has been fixed. Previously, the file included FUTA credit reduction information from 2024.
TAPS-1162Federal 941 MeF now has the correct SoftwareID value.
TAPS-980KY W-2/1099 Transmittal form has been updated for 2025.
TAPS-985MD local tax update. The following tax codes have new rates, effective 1/1/2026.
  • MD-ALL1 rate is 0.032
  • MD-KEN1 rate is 0.033
TAPS-1071Minimum wage rates have been updated for multiple states and localities. See the 20260109_MinWage_changes.xlsx spreadsheet at the end of this solutions article for details.
TAPS-979MT Annual Reconciliation form has been updated for 2025.
TAPS-1072OR SUI rates have been updated, effective 1/1/2026.
  • ORSUI rate is 0.02265
  • ORAST rate is 0.0135
TAPS-848PA local tax update. The LCTCB LST eFile has been fixed.
  • The RE record now has the correct quarter date.
  • The RS record now contains the PSD code and Designation LST. Notes : ReadyPay will automatically attempt to match the LST code with the PSD code for the employee. If the automatic lookup fails, you will need to add a note to the employee. using these steps: 1. Go to Company Setup > Misc > Note Types, and add a new entry using the code PA-LCTCB . 2. Go to Company Setup > Misc > Note Categories, and add a new entry using the code Resident PSD . 3. Select your employee(s) to add the notes to. On their Notes tab, add the Note code PA-LCTCB with the Category set to Resident PSD. In the description, enter the employee’s corresponding resident PSD code (e.g., 310101). Also enter an effective date. Use the Next Date field for the end date (or leave it blank and 12/31/2100 will be used).
TAPS-854Philadelphia, PA Employer Wage return has been updated to account for shortages due to tips.
  • A generic, non-fileable Deposit Notice has been added.
  • A generic, non-fileable wage listing has been added. This form includes details about the calculations used to get to the amounts on the deposit notice.
  • The PA_510101N_Q task will produce only the above two forms. Notes :
  • If the company and/or employee does not have tips, the shortage won't be calculated for those employees.
  • The company must have active tax records for the Philadelphia PSD code (e.g. PA-510101). Although the returns will include amounts for the PA-PHI1 and PA-PHI2 tax codes, the tasks to produce the returns/eFiles require the PSD-based tax code.
  • The form and eFile require rounding. However, the actual withheld amounts are not rounded. As a result, your results may include a dollar underpaid or overpaid, even when there are no shortages.
TAPS-1125RI SDI rate has been updated to 0.011, effective 1/1/2026.
TAPS-1135Seattle, WA tax code WA-SEA4 “Payable To” address has been updated to: City of Seattle-LTA PO BOX 34214 Seattle, WA 98124-4214
TAPS-1142TurboTax export has been fixed. The export file now contains the expected RE record.