Several people have asked when they should load the 2011 tax table update for MAS 90 and MAS 200 payroll.
As you may know one of the hidden gotcha’s of printing W2 forms via MAS 90 and MAS 200 payroll is the system uses the current FICA/MEDICARE maximum limits for determining how much goes into each FICA/MEDICARE box. For employees over the maximum limit at which tax is assessed MAS 90 simply supplies the current maximum rate from the FED tax table.
Update 1-11-2011: New Sage ERP MAS 90 and 200 2011 Tax Tables
At first glance since there is no limit change for the FICA/MEDICARE this year many users determined that it didn’t matter when they loaded the tables (ie – Before or after preparing quarterlies and W2 forms).
Turns out according to Jim Woodhead over at DSD Business Systems that if you load the tax tables early your 941 form will show an incorrect overpaid status due to the 941 form using the NEW rate for employee FICA (4.2% for 2011). the solution is to manually change the FICA rate back to 6.2% while printing your 941 forms.
PS – Don’t forget to change it back to 4.2% when you’re done printing.