2024 Regulatory and Policy Changes
Discover key regulatory changes effective January 1, 2024, impacting payroll and reporting requirements.
Below is a snapshot of important changes that will go into effect as of January 1, 2024. This is not a comprehensive list of 2024 changes as many are routine (i.e. rate changes) and will be fully supported by Check.
Alabama - NEW Overtime Pay Exemption
Effective: Jan 1, 2024
Impact: Reduced state income tax withholding for hourly employees who are paid overtime wages and additional reporting requirements for AL employers.
Beginning 2024, the Alabama Department of Revenue will no longer withhold state income tax on employees' overtime wages. In addition to this change in payroll tax calculations for the new year, the agency has added additional reporting requirements. There will be a one-time annual report due in January 2024 to report overtime wages paid in 2023 and beginning 2024, overtime data reporting will be added to the existing monthly/quarterly tax reporting for withholding.
Colorado - Reactivated Solvency Surcharge
Effective: Jan 1, 2024
Impact: Employers are subject to an additional unemployment surcharge and should ensure the new rate is shared with their payroll provider.
The Colorado Department of Labor and Employment will reactivate the Solvency Surcharge for 2024. The surcharge was suspended in 2021, 2022, and 2023. Beginning Q1 2024, employers will be required to resume paying this surcharge in addition to their state unemployment tax contributions. Employers will see their assigned solvency surcharge rate on their 2024 unemployment tax rate notices (sent in mid-Dec) and should ensure that they provide the additional rate to their payroll provider before the new year.
South Carolina - NEW SOC Code Reporting
Effective: Q1 2024
Impact: Employers are required to report SOC codes for all employees on their quarterly unemployment returns.
Beginning the first quarter of 2024, the South Carolina Department of Employment and Workforce will be requiring employee SOC codes and hours worked to be reported on Q1 2024 quarterly unemployment returns. Employers will be required to report this information to their payroll providers before the end of Q1 in order to ensure their unemployment returns can be filed.
SOC stands for Standard Occupational Classification and is a system “used by federal statistical agencies to classify workers and jobs into occupational categories for the purpose of collecting, calculating, analyzing, or disseminating data (source).”
West Virginia - NEW SOC Code and County Reporting
Effective: Q1 2024
Impact: Employers are required to report SOC codes, occupational titles, and counties for all employees on their quarterly unemployment returns.
Starting in the first quarter of 2024, employers will be required to report SOC codes, occupational titles, and county names associated with the work locations of their West Virginia employees on their unemployment returns. Employers will be required to report this information to their payroll providers before the end of Q1 in order to ensure their unemployment returns can be filed to the West Virginia Unemployment Compensation Division.