withholding – Schulz Consulting

Sage 100cloud Payroll 2.1x Over Withholding for Checks Dated 12/31/2019

December 17, 2019 by Wayne Schulz

We have seen multiple reports from Sage 100 Payroll users where a payroll check dated on 12/31/2019 via Sage 100cloud Payroll 2.1x has too much federal tax withholding.

UPDATE: Sage has published a hot-fix for Payroll versions 2.19.4 and 2.20

In some cases, reports have mentioned federal income tax withholding that is $100 or more than the prior payroll check.

Sage has an issue report on this which they documented as:

Tax Calculation – New W4 Dependent Amt, Other Income & Deductions Values not pulled into Calculation when check date is 12/31/2019 or 01/01/2020

Federal tax withheld changes on checks dated 12/31/2019 or 01/01/2020

Federal tax calculation amount is wrong on checks dated 12/31/2019 or 01/01/2020

W-4 exemptions are ignored when generating payroll check dated 12/31/2019 or 01/01/2020

According to this knowledgebase entry, expect a hot-fix to be issued around the same time as Sage releases Payroll 2.20 which is expected on or about December 19, 2019.

IRS Percent Method Withholding Tables for 2013 (Notice 1036)

January 1, 2013 by Wayne Schulz

As of January 1, 2013 the IRS have not yet released Publication 15 – Employer’s Tax Guide. This booklet typically includes the tax withholding rules as well as percent method withholding tables some use to update their computer withholding.

In the interim the IRS have released Notice 1036 which includes the social security limits and rate as well as percent method withholding that is presently in effect as of 1/1/13. Important: These rates may change as the government votes on pending tax legislation so be sure to check back with the IRS and update any rates as required.

IRS Notice 1036: Early Release Copies of Percent Tables for Income Tax Withholding for 2013 and IRS

CT Withholding Tables – 2012 (pdf)

December 31, 2011 by Wayne Schulz

The State of Connecticut have released their withholding tables for 2012. These lookup tables allow you to verify employee wage withholding against any computerized payroll computations. CT tax statuses A, B C, D, and F are included as well as weekly, bi-weekly, semi-monthly, monthly wage payment periods.

CT DRS 2012 Withholding Tables

CT W-4 for 2012

CT 2012 Withholding Forms and Tables

CT Payroll Tax Withholding Wrong? Join The Club

December 31, 2011 by Wayne Schulz

The Hartford Courant is reporting that over 700 Connecticut employees contacted the state to ask why their December 2011 tax withholding was incorrect. Apparently this widespread issue is due to the state attempting to apply some retroactive tax adjustments to worker’s pay. The reason so many are experiencing issues in December is automated payroll systems miscalculate income tax owed when workers have either overtime pay, a Christmas bonus or a buyback of unused sick days.

Provided your pay is regular each period the Connecticut withholding tax tables appear to work just fine. When payroll is different weekt to week (as may be the case with vacation or holiday pay or year end bonus) then the CT Withholding tables (provided by the state) may inaccurately withhold too much.

According to the Courant:

Because the increase in state income taxes began in August, but was retroactive to the beginning of the year, state income tax withholding is designed to both take out the right amount for the current pay period and for the first two-thirds of the year. But when employees have higher pay than usual, many payroll systems assume they’ve been earning that amount all year.

Even the state of Connecticut had overwithholding issues, with Department of Transportation workers after Tropical Storm Irene. The state did not make a fix to its software, because the same thing happened again in December, for corrections officers who received holiday pay and overtime.

“Those employees have been refunded where possible,” said Tara Downes, spokeswoman for the state Comptroller.

The good news: no worker, no matter how plumped up his check is with overtime or bonuses, will see this glitch starting Sunday. That’s because the systems will no longer be trying to calculate retroactive withholding.

via: Hartford Courant and State of CT Withholding Tables for 2012 (PDF)

MAS90 Update To Compute Connecticut Payroll Taxes (August 1, 2011 Changes)

July 22, 2011 by Wayne Schulz

As of August 1, 2011 Connecticut has new tax withholding rules which require some modification to the standard MAS0/MAS200 payroll module.

The new CT withholding rules can be reviewed here on the Connecticut Department of Revenue Services site. Be sure you consult your tax advisor on the best way to apply these rules. As a reminder Schulz Consulting does not provide tax or accounting advisory services. We recommend you consult your tax advisor with specific questions on the new tax rules. This update is not meant as a substitute for such discussions.

Because these Connecticut withholding tax changes required new computation steps in the MAS90 and MAS 200 payroll – Sage released an updated tax calculation program for those users on Sage ERP MAS 90 or 200 v4.2.0.26+, 4.3.0.17+, 4.4.0.0+.

IMPORTANT: Please be sure to read the instructions for the respective update. There may be several steps including some manual computations due to the complexity of the new Connecticut rules.

At a minimum you will need to:

A. Install the modified tax calculation program for your version of MAS 90 or MAS 200
B. Install the Payroll Tax Table Update
C. Assign the appropriate new employee filing status for each employee that earned Connecticut income in 2011 prior to August 1 (see the instructions for the modified tax calculation program).

We recommend you manually verify the computed payroll taxes for at least the first payroll run which includes the new CT updates. You are responsible for verifying the accuracy of tax information withheld and compliance with regulations – not Sage. Compare the withheld amounts against what the tables provided by CT indicate should be withheld.

You can access the tax calculation updates and view more information at the following link.

Here’s a quick review of the steps you’ll need to complete for version 4.4.0.1 to 4.4.0.6

Download the latest tax calculation updates

Sage CT Tax Withholding Instructions

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