North Dakota and Connecticut Tax Changes
If you currently employ staff in North Dakota or Connecticut, you should be aware that your states are making tax changes. Details of those changes and accommodations you need to make in the Payroll module of The Financial Edge are below.
For the state of North Dakota, they have announced that effective immediately they are making tax table changes for the 2011 year. The new tables can be found on the North Dakota State Government site. They have also advised that even though these changes are retroactive for the entire year, you are not required to make any retroactive changes or adjustments to your employees’ completed tax calculations. The state is requesting that you make the changes to your tax tables as soon as possible and that you use the new tables going forward. There will not be an update for The Financial Edge that’s specific to these changes, so you will need to manually make the changes to your North Dakota tax table.
For the state of Connecticut, they have announced tax changes that will be effective on 08/01/11. The changes and new tables can be found on the Connecticut State Government site. Prior to 08/01/11, Blackbaud will release a patch that accommodates these tax revisions in The Financial Edge. This is because the tax revisions also require a change in how The Financial Edge calculates tax for the state of Connecticut, rather than simply updating the tax table. The state of Connecticut will require some retroactive adjustments in the form of catch-up withholding that needs to be made to some employee records before the 08/01/11 revisions. For more information about what changes should be made, please review the Connecticut State Government site or contact your tax expert.