To ensure accurate tax withholding for payrolls processed after January 1, 2025, a recent update to your UKG Pro^® solution has been applied to correct the application of the standard deduction for employees who selected “Married filing jointly or Qualifying Surviving Spouse” and answered “Yes” to the spouse earned income question on the IA W-4 form.

Action required! For accurate tax calculations and employee withholding, please take the following steps:

• Identify potentially impacted employees by running the Iowa Married Employee List report from the BI Exchange in the UKG Community™ (under Learn > UKG Pro > BI Exchange). Read the Use the BI Exchange for UKG Pro^® People Analytics job aid for full details on leveraging these reports.
• Advise your impacted employees to resubmit their IA W-4 form information with the correct marital status and response to the spouse income question (under Menu > Myself > Pay > Income Tax > Things I Can Do > Add/Change Withholding Form (W-4) > select an Iowa withholding form). This will help align their tax profile with the updated system requirements. Employees have the option to make an additional contribution for payroll when they resubmit their IA W-4.
• Payroll administrators can utilize the Change States Income Tax page to select the appropriate filing status. This option will be displayed as "Married Filing Joint- Spouse Income" in the administrator pages (under Menu > Administration > Employee Admin > My Employees > select an employee > Taxes > Income Tax > select an Iowa location).

Important! If under-withholding needs to be addressed, the options are to either advise employees to opt for additional contributions to catch up in 2025 by submitting a new IA W-4, manually increase the tax amount on the next regular payroll, or create a manual adjustment. For a large number of employees, follow the steps in the How to Correct Employee Tax Amounts via a Third Party Import article. No action is needed if employees wish to reconcile any under-withholding when they file their 2025 taxes.

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