Update 7/20/2023: ESD has an important update as they are currently processing applications, but were not able to process all applications before the July 1st date that requires employers to withhold premiums.
Applications that were submitted before July 1st and are approved will be issued an effective exemption date of July 1, 2023, regardless of when the application was approved. Because this may mean premiums may be deducted before an exemption approval letter is presented, once the letter is presented with the effective exemption date of July 1, 2023, all deductions for the quarter should be refunded to the employee.
Applications received on July 1st or afterwards that are approved will get an effective exemption date starting the following quarter.
Program Changes for Effective Exemption Date
Datatech software applications have been updated to add the LTC Exemption Effective Date entry to the employee file.
If a retroactive effective exemption date is entered, the program will refund any premiums that were withheld in the current quarter, and it will not withhold any more from then on.
Note: The program cannot refund LTC tax withheld in a prior quarter. If you close a quarter and find that an employee’s effective exemption date was for that quarter and you need to refund withheld LTC, you will have to re-open the quarter, issue the refund, and go through the closing processes again.
If a future effective exemption date is entered, such as the start of the next quarter, the program will continue to withhold LTC until the quarter of the effective exemption date.
You can see the new Exempt Effective Date feature below:
Go to Check for Updates to install this update. (Customers using The Shipper’s Office, Datatech’s General Business or Nursery Software should contact Datatech Support for their update.)