circular e – Schulz Consulting

Use This IRS Circular E To Verify Sage 100 Payroll Taxes In 2016

December 30, 2015 by Wayne Schulz

After the last payroll of 2015 and before your first checks are issued in 2016 you should apply the latest Sage 100 payroll tax tables. The Q1 2016 tables are available for download to anyone with an active Sage Business Care subscription.

Best practices for payroll indicate that you should test some of the tax calculations from your first payroll run of 2016. In order to do this you will need the IRS Circular E – Employer Tax Tables – for 2016 which contain the rates and schedules necessary to manually compute withholding.

Verifying that the deductions are properly computing during the first check run of the new year can save you lots of time should there be an adjustment needed in order to fine tune the computations.

Review the 2016 Circular E Federal Employers’ Tax Guide

2012 W2 and W3 Instructions and Box 12 Codes

December 19, 2011 by Wayne Schulz

Looking for the W2 and W3 official instructions for preparing year end employee tax forms? The IRS published this guide (see below) in November 2011 which also includes a handy list of W2 Box 12 form codes and their proper use.

2012 w2 w3 IRS form Instructions

IRS Payroll Tax Tables – Publication 15 (Circular E) for 2011

January 16, 2011 by Wayne Schulz

IRS Circular E Publication 15 Tax Table Guide 2011.jpg

We recommend that the IRS tax tables for 2011 be used on your first payroll run of the new year to manually verify that the tax tables you’ve uploaded to your computer system match with the official tables issued by the IRS.

Small discrepancies of a few centers are typical. If you’re seeing discrepancies of several dollars then you should check to be sure you have the proper Sage ERP MAS 90 or 200 tax tables installed .

We recommend that even after installing the Sage ERP MAS 90 or 200 tax table updates that you also go into the Circular E for 2011 and manually compute several (or all) tax withholdings for each of your employees.

Issues around incorrect tax tables are significantly easier to correct during the first payroll of the new year than if they’re discovered at year end and retroactive fixes need to be made.

When in doubt – be sure you consult with your tax progressional about proper tax treatment of both employee wages and any deductions which you are creating or continuing to use. The tax law changes frequently and it’s better to set these deductions up properly from the start than to notify employees midway through the 2011 tax year that there’s a change to their payroll withholding.

You can download the IRS tax tables from the IRS Site — http://www.irs.gov. Always check to be sure you are using the most current rates and that pending changes are included in any guides that you are using for reference. Pay attention to effective dates since some late changes may allow for adoption during the current year so long as you make adjustments. Consult your tax professional for advise on tax matters.

IRS Circular E – Publication 11 – 2011

MAS90 and MAS200 Payroll Tax Withholding Tables Updated 12/23/09

December 25, 2009 by Wayne Schulz

Sage has issued another update for their MAS90 and MAS200 payroll tax tables. This update is dated 12/23/09 and contains tables effective for payroll checks dated in 2010.

The primary changes appear to be the addition of state taxes for Kentucky, Oklahoma and Virgin Islands.

As with all tax table changes we strongly recommend that you manually calculate that the withholding is proper on the first check run (2010 New IRS Withholding Rates – Circular E) . We further recommend that any changes to deductions also be calculated and that the proper taxability (before tax / after tax) be verified with your tax professional.

Below is a list of the latest changes that Sage made to the 12/23/09 payroll tax tables. You may obtain a copy of the tables for Sage MAS90 or MAS 200 (including Extended Enterprise Suite aka EES) versions 3.71+ by logging into Sage and downloading the Sage Payroll Tax Tables.

IRS Releases Tax Tables for 2010 – Circular E (Publication 15)

December 22, 2009 by Wayne Schulz

The IRS just released their Publication 15 (Circular E) Employer’s Tax Guide dated December 17, 2009. [UPDATE: We’ve updated the guide for an IRS revision dated January 8, 2010 ] This free download contains important payroll tax due dates, reminders, forms instructions as well as supplemental wage rates.

UPDATE January 11, 2011: The 2011 IRS Government Tax Tables are now available on the IRS Site — more information including link to download Sage ERP MAS 90 and MAS 200 tax tables for 2011. Remember to first check with your tax adviser before implementing any changes and to verify you are using the proper rates for the year which you are processing payroll.

Also included are the complete income tax withholding tables for 2010 as well both percentage and bracket method withholding rates.

This guide is especially handy for anyone wanting to calculate the first payroll run taxes to verify their accounting software tax table updates are working properly.

Important Note: Always verify that you have the latest tax tables by visiting the IRS.GOV site. While we strive to present the most current tables and publications we advise you check with your tax advisor and/or the IRS site for the latest updates.

Schulz Consulting LLC is not in the business of providing tax or accounting services. Contact your tax or accounting professional prior to implementing any changes. Always verify that you are using the most current tax tables.

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