Version 2025.4.0 release notes

General

Accounting

We updated the tax codes in the
Chart of Accounts
and
Enter Trial Balance
screens for integration with the 2025 versions of UltraTax CS and GoSystem Tax RS.
We updated the Tax Code Listing PDF for the 2025 tax year.

Workpapers CS

One Big Beautiful Bill Act (OBBBA) changes

We added the
OBBBA OT
field to the
Enter Transactions
and
Enter Batch Payroll Checks
screens.
The field is a non-calculated field and any values manually entered won't affect the net pay of the payroll check.
Its sole purpose is to record and track the overtime premium portion that exceeds the regular rate of pay (generally, the “half” portion of “time-and-a-half compensation”).
Accounting CS will use this amount when determining the qualified overtime compensation to report in Box 12 Code TT on 2026 Form W-2.
note
As further guidance becomes available from the IRS, we plan to enhance the calculations behind the
OBBBA OT
field to be more streamlined in a future release.
We added the following new W-2 Box 12 code for selection on employer contribution items in the
Main
tab of the
Payroll Items
screen and in the
Other W-2 Items
window in the
Personal
tab of the
Employees
screen:
TA
: Employer-paid contributions to an employee or dependent’s Trump account under a Section 128 program.
note
The selection of code
TA
on employer contribution items won't affect 2025 W-2 reporting and only applies to 2026 W-2s and forward.
We added the following new W-2 Box 12 codes for selection on pay items in the
Main
tab of the
Payroll Items
screen and in the
Other W-2 Items
window in the
Personal
tab of the
Employees
screen.
TP
: Total cash tips for qualified tip deduction (non-SSTB), use in determining the deduction on Sch. 1-A (Form 1040).
TS
: Total cash tips (SSTB employer); don't use in determining the deduction on Sch. 1-A (Form 1040).
TT
: Total qualified overtime compensation; use for deduction on Sch. 1-A (Form 1040).
note
When selecting code
TT
on new and existing pay items, you must also select
Hourly
as the Calculation type and
1.5 or greater
as the Overtime multiplier.
note
The selection of codes
TP
,
TS
, and
TT
on pay items won't affect 2025 W-2 reporting and only applies to 2026 W-2s and forward.
We added the
Payroll
Check
OBBBA OT
variables to the Report Designer and Layout Designer.
We added the following reports to the Accounting CS Library. (Ideas Community #1175)
OBBBA Qualified Overtime
OBBBA Qualified Tips
note
You must be on
Accounting CS v.2025.4.0 or higher
to experience the best results with the OBBBA Qualified Overtime report.
The new OBBBA reports are designed best for 2026 payroll processing and not for existing 2025 payroll checks.
For more information on how to access, download, and import custom reports from the Accounting CS Library into the Report Designer, see Import reports, financial statements, and letters from the Accounting CS custom report library.

Rev Rule 2025-4 changes

We added the
<State Name> FLI (ER Paid)
tax item to the
Payroll Taxes
tab of the
Clients
screen for the 7 states.
We added the
<State Name> FLI (ER Paid)
tax item to display in the Employer Taxes section of the
Enter Transactions
and
Enter Batch Payroll Checks
screens.
When the
Employer pays full employee PFML share
checkbox is marked on the
Payroll Taxes
tab of the
Clients
screen, the employee’s share of the PFML tax will calculate and display on the
<State Name> FLI (ER Paid)
tax item in the Employer Taxes section of the check.
When the
Employer pays full employee PFML share
checkbox isn't marked on the
Payroll Taxes
tab of the
Clients
screen, the employee’s share of the PFML tax will calculate and display on the
<State Name> FLI
tax item in the (employee) Taxes section of the check.
We added the
<State Name> FLI (ER Paid)
to the following tax agents:
Delaware Division of Paid Leave
Colorado Department of Labor and Employment
Maine PFML Fund
Massachusetts Department of Family and Medical Leave
MNFLI - Minnesota U.I. Fund
Oregon Department of Revenue
WAFLI - Washington Employment Security Department

Reports

Report Designer

Payroll
Check
OBBBA OT
Payroll
Check
OBBBA OT
Location and Department Distributions

Layout Designer

Payroll
Check
OBBBA OT
Payroll
Check
OBBBA OT
Location and Department Distributions

Payroll Compliance

Federal

We added the
Bank Account
field to the Overpayments section of the
94x Additional Information
screen (accessed via the
Payroll Taxes
tab of the
Clients
screen). When
Refund
is marked and a bank account is selected, the IRS will direct deposit overpayments that exist on Forms 940, 943, 944, and 945 into the specified account instead of issuing a paper refund check. For more information from the IRS, see Modernizing payments to and from America’s bank account.
We updated the following forms:
Form 940 and its electronic file.
note
For tax year 2025, the following states/territories are credit reduction states that are reportable on Form 940 Schedule A:
California
Virgin Islands
Form 943 and its electronic file
Form 943-X electronic file
Form 944 and its electronic file
Form 945 and its electronic file
Form 945-X electronic file
Forms W-2 Copy A and W-3 facsimile copies for 2025
Form W-2 internet file
Forms 1099 and 1099 Corrected electronic files (IRIS)
note
Accounting CS supports 20 1099 types for electronic filing in IRIS.
1098
1098-C
1098-E
1098-T
1099-A
1099-B
1099-C
1099-DIV
1099-G
1099-INT
1099-MISC
1099-NEC
1099-OID
1099-PATR
1099-R
1099-S
1099-SA
5498
5498-SA
W-2G
Forms 1099 and 1099 Corrected internet files (FIRE)
note
The IRS and several states no longer support Excess Golden Parachute payments reported on Forms 1099-MISC (for tax year 2024 and prior years) and 1099-NEC (for tax year 2025 and later years) in the internet files submitted to FIRE. Therefore, we now display diagnostics to prevent the federal and state 1099 files from being created in certain circumstances.
Forms 1094-C and 1095-C paper copies for 2025
note
The associated internet files will be available in a future release.

Alabama

We updated Form A-3.
We updated the form filing addresses on the
City of Goodyear
tax agent.

Connecticut

Delaware

We added
DEPFML
as the W-2 Box 14 description for the Delaware FLI tax item in the Taxes section of the
Payroll Taxes
tab in the
Clients
screen.
We updated Form WTH-REC.

Georgia

Hawaii

Kentucky

We removed the
KY Tax Credit
field from the W-2 Additional Boxes section in the
Main
tab of the
Payroll Items
screen for Kentucky clients as it is now obsolete.
We updated Form K-5.
The following forms haven't been released by the agency:
Fayette County Public Schools – Form 222-S
Lexington-Fayette Urban County Government – Form 222

Louisiana

Starting with the 4th quarter 2025 tax filing period, the Louisiana Department of Revenue now requires all employers to file Form L-1 electronically and will no longer accept paper copies of the form. Therefore, we made the following changes:
We added the
Web fill-in
filing method.
We removed the
Paper
filing method.
You can still file the form using the
Electronic
filing method.

Maine

Michigan

We added the direct deposit information required to produce an ACH credit file to the Unemployment Insurance Agency tax agent.
We updated Form UIA-1028 and its internet file.
We removed the
Internet with payment
filing method, which is now obsolete, from the form.
note
For clients who previously selected the
Internet with payment
filing method, their filing method will now be updated to
Internet
.
We updated the internet file, which now follows the ICESA format, to accommodate the Unemployment Insurance Agency’s new system that went live on December 15, 2025.

Minnesota

The Minnesota U.I. Fund updated the Additional assessment rate to 14%, effective January 1, 2026. When you add a new client or add a new unemployment rate record to an existing client, the unemployment rate defaults to 14% on the
Payroll Taxes
tab in the
Clients
screen.
We added the Minnesota Paid Family and Medical Leave (PFML) taxes (both employer and employee), that become effective January 1, 2026. As a result, we made the following changes to accommodate the new tax.
We added the
MNFLI - Minnesota U.I. Fund
tax agent and the accompanying taxes:
Minnesota EEFLI
Minnesota ERFLI
Minnesota FLI (ER Paid)
We added the
Employer pays full employee PFML share
checkbox for Minnesota in the State section of the
Payroll Taxes
tab in the
Clients
screen.
We added the
PFML small employer
checkbox for Minnesota in the State section of the
Payroll Taxes
tab in the
Clients
screen. Marking this checkbox results in the reduced PFML rate being used when calculating the employer portion of PFML tax premium on payroll checks.

Mississippi

Montana

Nebraska

New Mexico

Ohio

We added the following taxes to the City of Bellefontaine tax agent and removed them from their existing tax agents:
Bellefontaine City Tax
We added the following taxes to the Regional Income Tax Agency (RITA) tax agent and removed them from their existing tax agents:
Bowerston City Tax (effective 1/1/2026)
Lewisburg City Tax (effective 1/1/2026)
Springdale City Tax (effective 1/1/2026)
Trenton City Tax (effective 1/1/2026)
The following forms haven't been released by the agency:
Central Collection Agency (CCA) – Form CCA-W3
City of Cincinnati Income Tax Division – Form W-3
Columbus City Treasurer – Forms IT-13 and IT-13J

Oregon

Vermont

We updated Form WHT-434.
We updated the form filing addresses on the
Vermont Department of Taxes
tax agent.

West Virginia