2025 Tax Update #6 (2025.6)

This tax update applies to customers doing business in the United States.

Important: Vista tax updates are cumulative by year; therefore, 2025 Tax Update #6 includes all prior tax updates for 2025. It does not include any tax updates for 2024.

Compatibility

These tax routines are compatible with current and earlier versions of Vista, unless specifically stated otherwise. However, they are not tested on older versions, so compatibility is not guaranteed.

Alabama Tax Update

Beginning July 1, 2025, per Alabama state requirements, taxation of overtime wages for hourly employees will be resumed. Previously, tax calculations excluded overtime pay received by hourly wage paid employees for work performed in excess of 40 hours a week.

To implement this change, modifications were made to selected stored procedures and functions to ensure proper tax calculations. No changes were made to the Alabama stored procedure (bspPRALT). This means that you will not need to activate the Alabama routine to get the changes.

Once you install this tax update, timecards posted on or prior to 6/30/2025 that exceed 40 hours for the week will be excluded from taxation. Timecards posted on or after 7/1/25 that exceed 40 hours for the week will be included in the tax calculations.

Note: Time considered for the 40-hour per week taxable limit must be posted to earn codes with method H-Rate per hour, F-Factored rate per hour, or V-Variable Factored Rate.

This change also affects the Alabama Tax Exempt Wages query (in the Accounting Work Center). Based on the date range specified, the grid will now show employees that have non-taxable overtime wages (wages posted on or prior to 6/30/25 that exceed 40 hours per week).