Payroll Requirements for Year-End 2023

September 6, 2023 by Wayne Schulz Leave a Comment

Sage has issued the following support article – Payroll and 1099 compatibility for Sage 100 – which outlines the minimum versions required for FYE 2023 payroll and 1099 form processing.

Due to compatibility issues with the latest software provided by Sage’s tax reporting partner, the Sage 100 Payroll 2.24 release and 1099 update scheduled for December 2023 will not be compatible with versions of Sage 100 before 2020 (6.20.0).

Specifically, payroll customers and those utilizing 1099 functionality running Sage 100 versions 2018 and 2019 must upgrade to a supported version of Sage 100 to install the Payroll 2.24 release and the latest tax form updates.

Important Note: Customers running unsupported legacy payroll versions do not have the option of a separate payroll installation and are not impacted by this change.

Effective with the release of Payroll 2.24 (scheduled for December 2023), payroll and 1099 customers on versions 2018 and 2019 will need to be running one of the following versions of Sage 100 to install the latest release of Payroll and 1099 forms:

2023.x
2022.x
2021.x
2020.x

Customers not running a compatible version of Sage 100 will experience a failure of the Payroll update installation and the inability to generate 1099’s, W-2’s or associated tax reporting documents.

Starting with our 2024 Payroll release, Sage will have an n-3 support policy for payroll updates, meaning the update will be compatible with the latest and three prior versions of the Sage 100 software.

Sage 100 Payroll Users Must be On Sage 100 v2020 or Higher for December 2023 Update Compatibility

April 14, 2023 by Wayne Schulz

Sage advises that users of Sage 100 Payroll must upgrade to Sage 100 v2020.x (or higher) before the end of 2023. If you are a payroll user on a version of Sage 100 prior to 2020 then you won’t be able to load the year-end payroll update and will be unable to print or eFile W2 or 1099 or related tax forms.

The reasoning behind this is explained in Sage KB 119228:

Due to compatibility issues with the latest software provided by our tax reporting partner, the Sage 100 Payroll 2.24 release and 1099 update scheduled for December of this year will not be compatible with versions of Sage 100 before 2020 (6.20.0). Specifically, payroll customers and those utilizing 1099 functionality running Sage 100 versions 2018 and 2019 must upgrade to a supported version of Sage 100 to install the Payroll 2.24 release and the latest tax form updates.

Important Note: Customers running unsupported legacy payroll versions do not have the option of a separate payroll installation and are not impacted by this change.

Effective with the release of Payroll 2.24, payroll and 1099 customers on versions 2018 and 2019 will need to be running one of the following versions of Sage 100 to install the latest release of Payroll and 1099 forms:

2023.x
2022.x
2021.x
2020.x

Starting with our 2024 Payroll release, we will have an n-3 support policy for payroll updates, compatible with the latest and three prior versions of the Sage 100 software.

For more information, see Sage KB entry # 119228

Sage Releases IRD for 2021

December 15, 2021 by Wayne Schulz

Sage has released IRD for 2021. This year-end update is only for Sage 100 2019.5. Versions 2021.2 and 2020.4 already had the year-end updates added in prior product update releases.

New to this IRD:

1099-DIV form Changes
1099-MISC Form changes

For 1099 tax reporting is updated to version 2.95

Form 1099-DIV: Box 2e added for Section 897 Ordinary Dividends
Form 1099-DIV: Box 2f added for Section 897 Capital Gain
Form 1099-MISC: Box 11 added for Fish Purchased for Resale
For 1099-NEC: No changes were made to Sage 100. After the Aatrix update ( est 12/20/21 ), if the payer made direct sales of $5,000 and checkbox in vendor maintenance is selected for the 2021 1099-NEC, an X will print in box 2 of the form
1099-INT: No changes required for 2021

The 2021 IRD can be downloaded from this Sage link and applied to Sage 100 2019.5 ( not needed for 2021.2 or 2020.4 as the changes were incorporated into the product updates for each of those versions ).

There will be an Aatrix update to address and form printing or eFiling changes on or about December 20, 2021.

Sage 100 Payroll: Tax Liability Report Does Not List Additional Medicare and SS Tips

December 15, 2021 by Wayne Schulz

Users of Sage 100 Payroll 2.x should be aware of this issue which has just been listed by Sage as KB 113767.

Additional Medicare over $200k (.9%) and the ER & EE SS tips are not on the tax liability report.

Although Sage does not list a specific Payroll version this issue applies to, it’s likely that it is relevant to users of Payroll 2.21.3 released in October 2021.

Beginning with payroll version 2.x, all updates for the payroll module are applied separately from updates for the core Sage 100 accounting product.

Please check back with the KB listed above for the latest updates. It’s likely Sage will quickly release a fix for this reporting issue and you’ll be able to apply a hotfix prior to the year-end.

Sage Releases Payroll 2.21.3 for Sage 100

September 15, 2021 by Wayne Schulz

Sage today released the latest update ( v2.21.3 ) to payroll for Sage 100.

New payroll features include a gender identity field within employee maintenance to help California employers comply with the state’s pay data reporting requirements. The options are male, female, non-binary, and not reported.

Resident and non-resident wage and tax amounts are now broken out separately when running payroll tax calculations. The separate fields display on the employee tax history detail and employee tax history detail drill down windows.

For a complete list of new features please review the What’s New in Sage 100 Payroll 2.21.3.

To download the latest payroll 2.21.3 update visit this link.

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