Iowa and Montana implement new 2024 W4 forms that affect their State Income Tax Calculations

Iowa has introduced a new W4 form entitled IA-W4 that affects how State Income Tax is calculated for each employee.  The new W4 uses an “allowance” amount calculation as opposed to previous exemption/allowance counts.
The State Income Tax calculation will support employees who submit the new 2024 W4 form as well as those still using an earlier W4 form.  If an employee is using the new 2024 W4 form, the field entitled “W-4 Total Allowances” on the State Income Tax Page of Maintain Employees should be filled in with the amount entered on Line 6 entitled “Total Allowances” of the 2024 IA-W4.  If the “W-4 Total Allowances” field has a zero amount in it then the calculation will proceed with the appropriate calculation logic as if the employee has not yet submitted a new 2024 IA-W4 form.  Existing employees will default the “W-4 Total Allowances” field to zero and should be edited once an employee submits the new 2024 W4 form.

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Montana has introduced a new W4 form titled MW-4 that affects how State Income Tax is calculated for each employee.  Montana recommends that all employees fill out the new MW-4 for 2024.
The form introduces new Filing Status values that govern how Montana State Income Tax is calculated.  Therefore, for proper Montana State Income Tax to be calculated for 2024 each employee in Montana
should be edited and their Filing Status should be updated to the appropriate value.  The new calculation uses three distinct tax tables based upon the employee’s Filing Status setup on the State Income Tax
page on Maintain Employees.  Previously the Montana calculation only used a single tax table.  Until the employee Filing Status information is updated, the calculation will use the “Single” tax table for calculations
which could result in higher withholding.

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