Recent Payroll Updates And Changes

South Carolina Passes New EWA Law

Effective November 21, 2024, a new law will regulate earned wage access (EWA) services and create registration requirements for EWA providers in South Carolina.

South Carolina became the fifth state to enact a law regulating earned wage access providers, but it doesn’t subject them to lending laws. 

South Carolina Gov. Henry McMaster signed a new law Tuesday requiring earned wage access providers operating in the state to register annually with the state’s Department of Consumer Affairs.

A recent U.S. Government Accountability Office study found that earned wage access products “generally cost less than typical costs associated with payday loans.” The products pose a few consumer risks, including a lack of cost transparency.

The new law states that as part of that registration, the state will require that the EWA providers list fees to be imposed on the employee or employer for providing the services and include at least one option by which a user can receive earned wage access services at no cost.

While the new law imposes other limitations on such providers, the big win for the industry is that the law explicitly states that EWA services won’t be considered loans and that their providers won’t be treated like lenders. That has been a point of contention for the industry as some states and the federal government consider stricter regulations that would force EWA providers to adhere to existing lending laws.

New Ohio Employer Withholding Rates Effective July 1, 2024

The Ohio Department of Taxation has issued new employer withholding tables for payrolls that end on or after July 1, 2024. The new tables include the income tax rate reductions that went into effect when House Bill 33 (135th General Assembly) was signed into law on July 4, 2023.

The new employer withholding tables are posted on the Employer Withholding Tax webpage. Percentage and optional computer methods for calculating withholding and daily, weekly, biweekly, semi-monthly, and monthly tables are available.

For detailed information regarding Withholding rates for Ohio, Click Here.

Idaho Withholding Tables Updated for 2024

The Idaho State Tax Commission (STC) recently issued updated withholding tables for 2024 due to a law change that lowered personal income tax rates retroactive to January 1, 2024. The revised withholding tables should be used going forward. Employers do not need to adjust withholding back to the beginning of the year.

Earlier this year, Idaho Governor Brad Little signed into law H.B 521, which retroactive to January 1, 2024, reduces the state’s flat personal income tax rate from 5.8% to 5.695% on taxable income over $2,500 ($5,000 for taxpayers filing a joint personal income tax return).

They’ve updated the income tax withholding tables for 2024 due to a law change that lowered the tax rates. This includes updating the Idaho Child Tax Credit Allowance Table to reflect the lower rates.

The changes include: