How do I report the Employee Deferred Social Security taxes from 2020 on the W2?

October 6, 2021 by Wayne Schulz

During 2020 some employees may have elected to defer social security taxes. When that tax is repaid in 2021 you will need to make a report to the IRS. According to this Sage KB article which highlights the IRS Form W-2 Reporting of Employee Social Security Tax-Deferred under Notice 2020-65.

According to the IRS:

On August 8, 2020, a Presidential Memorandum was issued, directing the Secretary of the Treasury to use his authority pursuant to section 7508A of the Internal Revenue Code to defer the withholding, deposit, and payment of certain payroll tax obligations. In response to the Presidential Memorandum, Treasury and the IRS issued Notice 2020-65 on August 28, 2020. Notice 2020-65 provides employers with the option to defer the employee portion of Social Security tax from September 1, 2020 through December 31, 2020, for employees who earn less than $4,000 per bi-weekly pay period (or the equivalent threshold amount with respect to other pay periods) on a pay period-by-pay period basis.

The employee portion of Social Security tax deferred in 2020 under Notice 2020-65, as modified by Notice 2021-11, that is withheld in 2021 and not reported on the 2020 Form W-2 should be reported in box 4 (Social security tax withheld) on Form W-2c, Corrected Wage and Tax Statement. On Form W-2c, employers should enter tax year 2020 in box c and adjust the amount previously reported in box 4 (Social security tax withheld) of the Form W-2 to include the deferred amounts that were withheld in 2021. All Forms W-2c should be filed with SSA, along with Form W-3c, Transmittal of Corrected Wage and Tax Statements, as soon as possible after you have finished withholding the deferred amounts. See the 2021 General Instructions for Forms W-2 and W-3 for more information about completing and filing Forms W-2c and Forms W-3c. Forms W-2c should also be furnished to employees, and you may direct your employees to (or otherwise provide to them) the Instructions for Employees, below, for instructions specific to this correction.

Please consult with your financial advisor prior to making any filings to ensure that your tax situation applies to this specific IRS notice.

Form 941 For Q2 2021 Includes 23 Changes

July 7, 2021 by Wayne Schulz

eFiling and tax solution provider Aatrix has outlined the 23 changes to the IRS form 941 for Q2 2021. These changes impact part 1 and part 2 of form 941 which is required to be filed for payroll periods ending on or after June 30, 2021.

The changes to the 941 form include 10 new lines and 13 updated lines. Aatrix provides the tax filing integration used by Sage 100 and allows for both printing and e-filing of payroll returns using the most up-to-date forms.

For a complete list of the changes which Aatrix has made to their 941 forms / e-filing for Q2 2021 visit this link.

Follow these instructions to update your Sage 100 payroll forms via Aatrix. Please note that you must be on one of the Sage 100 versions below in order to update to the latest forms from Aatrix:

Sage 100 2019.5
Sage 100 2020.2
Sage 100 2021

Sage 100 Aatrix e-Filing Bug Erroneously Reports Bad SSN Matches for 2020

January 6, 2021 by Wayne Schulz

Early e-filers of W2 forms may have erroneously received a notice from Aatrix that their 2020 Sage 100 payroll files contained erroneous social security information.

The message indicated that the employee SSNs could not be verified by the IRS and that the company submitting the file should verify that the correct SSN were submitted.

Later in the day Aatrix began to notify users that the message had been sent to some in error and there may not be any issue with the social security number validation.

Aatrix advises that if you have received a message indicating SSN mismatches that you can use the following instructions to verify your filing:

To view Filing Status:

Navigate to https://efile.aatrix.com/ 2. Click on Log In in the upper right corner 3. Login with your eFile username and password 4. Click on the Filings Tab
a) Open Status: One or more parts of the filing are not complete.
b) Closed Status: All parts of the filing has been confirmed as complete or the filing was manually closed through the Aatrix online account.
c) Deleted Status: The filing is deleted and no part of the filing will be processed.
Click on the Details Link for the appropriate AFID number in the filings list.
In the additional details for the filing, each part of the filing will be listed with a status:
a) Awaiting Batch Processing: Not yet submitted to agency.
b) Rejected: Reason for rejection will be displayed.
c) Not Confirmed: Submitted to agency, but not yet confirmed.
d) Accepted: Submitted to agency and confirmed as received/processed.

There is No Sage 100 IRD for 2020

January 6, 2021 by Wayne Schulz

Sage has updated their support knowledgebase to make it clear that there is no separate IRD ( Interim Release Download ) for Sage 100 2020.

These downloads are typically released in December and include updates to accommodate year-end tax changes.

According to Sage:

There is no end of year IRD (Interim Release Download) for the year-end 2020. This update was not needed for the 1099s as the changes for 2020 were made in the latest versions released with changes to the NEC (NonEmployee Compensation) Forms.

Make sure you have versions 2020.1, 2019.4, 2018.10 installed and the Aatrix forms have been updated.

If you have 3rd party modifications for Production Management or IRP see kb 107739

Changes to the Payroll versions are no longer done for year-end through the IRD but rather the Product Updates for Payroll. Latest version for year 2020 is Payroll v2.21.0.0.

Is Your Sage 100 Payroll Year-End Processing Slowly?

January 5, 2021 by Wayne Schulz

Are you closing your Payroll module in Sage 100 and notice that it’s taking a long time? This may be even more pronounced if you were previously using an older version of Payroll and upgraded to Sage’s Payroll 2.x.

According to Sage:

In “legacy” Sage 100 payroll (versions 2017 and older), data tables holding quarterly and YTD numbers were simply reset by the program and completely cleared out. Only the Perpetual History and the efiling data tables would retain detailed information on prior-year payroll amounts.

In “Payroll 2.0” (Business Framework coding, versions 2018 and newer), all data tables track much more detailed information and it is retained in all tables year over year. When year-end processing is run in these newer versions, the program must comb through the many detail records and purge only those records older than the required retention setting as set in Payroll Options. Large amounts of employee data and history will cause a lengthier processing time, and many customers have reported longer processing time the first year-end that is run in the new version.

Sage further advises you not stop any period end while it’s in processing. You should allow the process to finish because stopping midway through risks data corruption.

The latest Sage 100 Payroll 2.21 may be downloaded from here ( login required )

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