IRS Publication 15 for 2009 contains the updated Federal Withholding rate tables as well as FICA limits for 2009. The guide is also an extremely helpful reference that can (and should) be used as a reference for the tax status of many different types of deductions such as 401k, cafeteria plans, flexible spending.

UPDATE 2-26-09: New IRS 2009 payroll tax tables have been released.

UPDATE 12-24-09: New IRS 2010 payroll tax withholding and rate tables have been released.

During my 10 years in the CPA world I used this as my guide during the hectic year end closing time when clients would ask about the new tax rates or whether a new deduction was taxable for federal purposes.

This guide is free and available from the IRS here.

I’ve included a viewable copy below (Beware – there may be changes from the time that I post this article and the time you are reading – so for best results always download the official copy from the IRS site). I take care to attempt to keep all information current but tax law changes frequently so please consult your tax advisor prior to making any tax table changes or updates.

Users who are not on a current version of Sage MAS 90 or 200 accounting software (and therefore don’t have access to the tax table update issued by Sage) can use the annual limit table in Publication 15 to maintain their own Federal tables.

Be advised that certain older versions of Sage MAS 90 do not support FICA maximum wages greater than 5 digits (xx,xxx) and an update is required in order to enter in the FICA limit for 2009 which is 6 digits – xxx,xxx.

Tip: Always manually calculate the taxes for the first payroll run of the year. This guards against the risk that someone mis-keyed the new tax rates into your software. Pay especially close attention to how a deduction code is treated (before tax / after tax) because it is often nearly impossible to change these codes after you’ve done your first payroll run of the new year.

Tip: Before you close payroll for the year in any accounting software – make a backup.

IRS Publication 15 – 2009

Publish at Scribd or explore others: Government irs publication 15

MAS 90 and MAS 200 payroll tax table updates were released today by Sage and are available for immediate download.

With updates to the Federal tax table and 26 separate states, you should download and apply the tax tables prior to entering your first payroll for 2009.

Remember : You must print W2 forms using the old tax tables in order for the Social Security wage base to be accurate on your 2008 W-2 forms.

Most users find it helpful to make a backup of their 2008 final payroll data to a test company in Sage MAS 90 or 200. This can be accomplished in version 4.x+ through the company maintenance option in Library Master. Versions prior to 4.x must use the “File” – “Run” – “SVDATA” command to make a copy of MAS 90 data.

UPDATE 12-23-08: There is an IRD for 2008 which has just been issued by Sage and may be downloaded from here.

Payroll Tax Table Update

Product Group: Sage MAS 90 and 200

Product Affected: Payroll Tax Table Update Levels 3.71, 3.72, 3.73, 3.74, versions 4.00, 4.05, 4.10, 4.20, 4.30, and 4.30 Extended Enterprise Suite Version 1.0 and 1.1.

Number: PR3033-KBA
Date: December 19, 2008

Subject: 2009 Payroll Tax Tables Update Level 4.30, dated 12/19/08

You must be active on a Sage Basic Software Maintenance Plan to obtain the tax tables which must be downloaded from the Sage site (none are sent by mail).

As discussed during my December 17, 2008 year end seminar, there will not be an Interim Release Disk (IRD) this year since there have been no changes to the W2 form layout.

Link: Download Sage MAS 90 and 200 Payroll Tax Tables Update for 2009

Other Year End Items of Interest:

Schulz Consulting Year End 2008 Seminar (recorded)

Sage Official Year End Payroll, Electronic Media, Accounts Payable FAQ

MAS 90 Year End Closing Tips

IRS Publication 15 for 2009 Outlines New FICA and Withholding Information

Sage MAS 90 2009 Tax Tables available now

Payroll Tax Table Update

Other Year End Items of Interest:

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