Instructions for installing the January 1, 2012 Tax Update and Product Update 3 for us payroll 0 (Both are required)




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NameInstructions for installing the January 1, 2012 Tax Update and Product Update 3 for us payroll 0 (Both are required)
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Sage Accpac ERP

U.S. Payroll 6.0

Tax Updates

Thank you for choosing a Sage accounting product.
This Payroll Tax Update readme file provides an overview of the changes included in the most recent tax update for Payroll 6.0. For additional information, see the Tax Update Notice.


Documentation:
Note: Before installing the Service Pack/ Product Update or the Tax Update, make sure all users have exited the program and there are no Sage Accpac ERP instances running.
Important Update—Installation Process Change

Activation Codes are no longer required. This modification to the installation process requires some additional requirements. Please ensure you update your installation process appropriately.

Critical—Product Update Requirements

Before installing the payroll tax update, you must verify your service pack or product update level first. More details on the error you will receive if you are not running the correct Product Update for your version can be found in the Answer ID 28923 Knowledge Base article. To verify what service pack or product update you have installed, click the System Information option in the Help menu in your Sage Accpac ERP program.


  • If you are on Payroll 6.0A, Payroll Product Update 3 is required


Tax Update Documentation

You can obtain documentation, such as the tax update notice and the Quarterly Wage on Diskette document, from any of the following areas:

  • After you install the tax update program, open the Sage Accpac ERP desktop, select the Help menu, then Documentation.

Or

  • After you install the tax update program, open the Microsoft Start menu, then select All Programs > Sage Accpac > Documentation.


Files pertaining to the US Payroll Tax Update will have filenames that start with “UT”.

Instructions for installing the January 1, 2012 Tax Update and Product Update 3 for US Payroll 6.0 (Both are required)

Before installing and activating this tax update and product update, ensure that you create a backup in case you need to restore.

Critical requirement:

Before you begin you must have the latest Sage Accpac 6.0A Product Update installed on your system. For 6.0, this would be Product Update 1 or higher.

Installation for 6.0:

  1. For 6.0 install Product Update 3, and then install the January 1, 2012 Tax Update 6.0G.

  2. Depending on your current version –

      1. If you are activating your database from 6.0 Payroll with Product Update 2, activate the January 1, 2012 tax update.

      2. If you are activating your database from 6.0 Payroll with Product Update 1 or lower, you will receive the following message.



At the activation screen, select both the US Payroll 6.0A and the US PR Tax Update January 1, 2012 – 6.0G check boxes for activation and proceed through the activation process.

Important: If you are upgrading from a lower version to 6.0, please ensure that you install and activate to 6.0 Product Update 3 and the January 1, 2012 tax update 6.0G.

January 1, 2012, Tax Update (Version 6.0G)
This section describes the payroll tax changes for the January 1, 2012, tax update. If we receive additional income tax changes for 2012, new tax update and documentation will be available.

Federal Income Tax Changes
The IRS has released new percentage method tables for wages paid in 2012. (Effective 1 1 2012)
Social Security Wage Base Change
The Social Security wage base for 2012 is $110,100. The employee rate is set to 6.2%.
State (or Local) Income Tax Changes
This tax update contains changes in the state (or local) income tax withholding tables for the following, effective January 1, 2012, unless otherwise noted:
California

Connecticut

District of Columbia

Kentucky

Maine

Minnesota

New Mexico

New York State *

New York – City of Yonkers *

North Dakota

Oregon
For details of the changes, please refer to the publications issued by your Department of Revenue.
*Note: On December 7, 2011, the New York State Senate passed a “Middle Class Tax Cut and Job Creation Plan” that will impact compliance for the state of New York. The changes implemented in the January 1, 2012 tax update were based on the preliminary withholding tables.  The January 31, 2012 tax update, available in mid-January, will include changes resulting from this updated legislation.
Connecticut Extra Withholding Tax adjustment:

When the Connecticut hotfix was released for the August 1, 2011 effective date, there was a Macro to calculate the CTSIT catch-up amount. The amount was entered in the Extra Withholding field for CTSIT Tax in the employee setup Taxes tab.

Beginning in 2012, please review this field to ensure that the amount is correct as the catch-up amount has been discontinued.
SUTA Wage Base Changes
Tax Year

2012 2011
Alaska 35,800 34,200

Colorado 11,000 10,000

Florida 8,500 7,000

Hawaii 38,800 34,200

Idaho 34,100 33,300

Illinois 13,560 12,740

Iowa 25,300 24,700

Kentucky 9,000 8,000

Minnesota 28,000 27,000

Montana 27,000 26,300

Nevada 26,400 26,600

New Hampshire 14,000 12,000

New Jersey 30,300 29,600

New Mexico 22,400 21,900

North Carolina 20,400 19,700

North Dakota 27,900 25,500

Oklahoma 19,100 18,600

Oregon 33,000 32,300

Rhode Island * 19,600 19,000

South Carolina 12,000 10,000

South Dakota 12,000 11,000

Utah 29,500 28,600

Vermont 16,000 13,000

Washington 38,200 37,300

Wyoming 23,000 22,300
Rhode Island
The Unemployment Insurance wage base increases to $19,600 for positive balance employers and increases to $21,100 for negative balance employers for 2012.
The program supports the positive balance wage base of $19,600. If your Unemployment wage base is different from the $19,600 you will need to make the following adjustment before running the first calculation of 2012.
1 - Select the Federal and State Taxes setup icon.

2 - Enter RISUTA in the Tax field

3 - Select the Basic Info tab and enter the wage base in the Annual Maximum Earning field

4 - Click Save

Alaska

The employee withholding rate increases from 0.58% to 0.66%

State Disability Insurance (SDI) Changes
The State Disability Insurance (SDI) has changed for:
California The taxable wage base limit remains at $95,585.

The SDI rate for employees increases from 1.2% to 1.0%.

The maximum amount to withhold for each employee in 2012 is $955.85.
Hawaii The Hawaii Department of Labor and Industrial Relations has posted to their website that their temporary disability insurance (TDI) maximum weekly wage base will increase to $903.28 in 2012. An employer may withhold TDI contributions of one-half the premium cost but not more than .5% of the employee’s weekly wage, with the maximum not to exceed $4.52 for 2012.

New Jersey The taxable wage base limit has changed from $29,600 to $30,300.
Rhode Island The TDI taxable wage base will increase to $60,000 in 2012 (from $58,400 in 2011).

The TDI employee contribution rate will decrease to 1.2% in 2012 (from 1.3% in 2011).
=====================================================
Changes to the W-2 reporting
Cost of Employer-Sponsored Health Coverage – Employee Contributions (Code DD on the W-2)

The Cost of Employer-Sponsored Health Coverage – Employee Contributions has been added to the W2 Reporting field selection list for employee contributions to an employer’s Cost of Employer-Sponsored Health Coverage
If you have items in Payroll, you can report them in Box 12 – Code DD as follows:
1 - From the Payroll Setup folder, open the Earnings and Deductions form.

2 - Select the Deduction Category.

3 - In the Employee tab, select Employer Provided Health Care under W2 Reporting.

4 - Click Save
Cost of Employer-Sponsored Health Coverage – Employer Contributions (Code DD on the W-2)

The Cost of Employer-Sponsored Health Coverage – Employee Contributions has been added to the W2 Reporting field selection list for employer contributions to an employer’s Cost of Employer-Sponsored Health Coverage
If you have items in Payroll, you can report them in Box 12 – Code DD as follows:
1 - From the Payroll Setup folder, open the Earnings and Deductions form.

2 - Select the Benefit Category.

3 - In the Employee tab, select Employer Provided Health Care under W2 Reporting.

4 - Click Save
If you have both an employee and employer contributions they will be combined as one total in Box 12 as DD.

Designated Roth Contributions (Code EE on the W-2)

The Designated Roth Contributions has been added to the W2 Reporting field selection list for employee contributions to a designated Roth contribution under a government section 457(b) plan.
If you have items in Payroll, you can report them in Box 12 – Code EE as follows:
1 - From the Payroll Setup folder, open the Earnings and Deductions form.

2 - Select the Deduction Category.

3 - In the Employee tab, select Roth contributions under government 457(b) under W2 Reporting.

4 - Click Save

Changes to the W-2s On Disk(ette) Function
For the US Federal Income Tax reporting authority and States that require this option there is a new field, Kind of Employer in the Employer Info tab. Before submitting the W-2 on diskette select the correct Kind of Employer from the dropdown list applicable for your company.
The W-2s On Disk(ette) function in Payroll has been modified to accommodate 2011 W-2 diskette and electronic reporting for federal and for states such as Arkansas, District of Columbia, Idaho, Massachusetts, Maryland, Vermont, and Wisconsin. If you need details about the file layout and requirements, refer to the reporting specifications issued by your government agencies and the Update Notice document.
Changes to the Quarterly Wage On Disk(ette) Function
The Payroll Quarterly Wage On Disk(ette) function has been modified to reflect the reporting specification changes made by Vermont. If you need details about the file layout and requirements, refer to the reporting specifications issued by your government agencies and the Quarterly Wage on Diskette document.
=====================================================
Set up a Local and Custom Taxes

There are 3 new buttons in Local and Custom Taxes – Select Local Tax, Update, and Install Repository. Please refer to the online Help for more information about these buttons.

Overview

This topic describes how to set up and add a tax that is supplied by Payroll, such as city or county taxes unique to your area. 

After you add the tax, you can use it in your Payroll system. For example, you can assign the tax to an employee or use the tax when setting up an earning/deduction.

Before you start

  • Make sure you understand the impact the tax settings have on payroll processing.

  • Using the Earnings and Deductions window, define the earnings/deductions used to calculate your employees’ pay.

  • Determine the local or other custom taxes you need, and the types of information you need to track and report in each.

  • Consider the levels of your taxes.

  • Determine the G/L account numbers to which you want tax amounts to post.

If you are using cost center overrides, you may want to set up base distribution accounts at the tax level since you will be overriding one or more of the distribution account’s segments with employee-specific segments. (If you use cost center overrides, tax amounts are distributed to the cost centers in which the taxable wages were earned unless you set the Use Cost Center Overrides For These Accounts option to None on the Payroll G/L Integration setup window.) A base distribution account has a valid account segment but may use zeros or some other number for the segments that will be overridden on an employee-by-employee basis.

Be sure that the G/L segment codes and accounts, including any base accounts, to which tax totals will post have been added in General Ledger.

To set up a local tax for your company:

  1. Open US Payroll > Payroll Setup > Local and Other Custom Taxes.

  1. Click the Select Local Tax button. All taxes in your system appear.

  1. Highlight the local tax to add to your company and click Select.

  2. Enter the Earnings code on the Calc Base tab in the Base Earnings Include grid.

  3. Verify the information for the tax and on the G/L Dist tab, add a G/L Distribution Code.

  4. Click Add.

After setting up a tax

  • Print a listing of taxes you set up, to verify that they are correct and complete:

  • On the File menu of the window, choose Print.

Or

  • From the Payroll Setup Reports folder, choose Tax Profiles.

Install the Tax Repository and Update taxes

  • The activation process will automatically load the latest tax repository.

  • If your company's local.xml file has changed since activating the last tax update, make sure you update the local tax repository by clicking the Install Repository button.

  • The Install Repository button restores the latest available compliance data in your system. The repository contains the compliance data for taxes and tax filing.

Note: This will not affect any current company tax codes you have in your system. You can also reinstall the repository multiple times.

  • To update a company tax code with data from the repository, select the tax code in the tax finder and then click the Update button.

Note: The Update button is enabled only if the tax code is included in the tax repository.

Update Local Tax Audit Report

There is a new report under Payroll Setup Reports called Update Local Taxes Audit. This report is to track the changes that are made through the Local and Custom Taxes Form.
=====================================================
Setup for Pennsylvania Political Subdivision Codes

When assigning the Pennsylvania Political Subdivision Codes to your employees you must use the local taxes from the Select Local Tax button. This is to ensure that certain company data is tracked in the database.

To determine which Pennsylvania local tax codes apply to PSD –

  • Click on the Select Local Tax button.

  • Click on Settings in the top menu

  • Select Columns...

  • Under Unselected highlight “Political Subdivision Code” and click include to move to the Selected box

  • Click OK

When you scroll through the Pennsylvania local tax codes the Political Subdivision code numbers will be listed in the new column

Here are the steps to assign your PA PSD codes to your employee setup.

  1. After adding the PA PSD codes in Local and Custom Taxes from the Repository.

  2. Assign both the Resident and Non-resident PA PSD code to the Taxes tab of the Employee setup.


Calculate payroll will determine which tax has the highest rate and withhold only the tax with the higher amount.

All PA taxes withheld will be recorded in a new table (UTPAPSD). This table will allow the user to file their monthly or quarterly reports as required by PA Act 32. The electronic file required for PA PSD code reporting will be delivered in a subsequent tax update.


Adjusting Transactions through Transaction History


The PSD calculation is not supported through Transaction History and is scheduled for a future release.

Manual checks

The PSD calculation is currently not supported in Manual Checks and is planned for a future release. If you need to process a manual check use the Calculate Payroll function for the employee. This is to ensure that the amounts calculated will be reported correctly through the PSD reporting function.

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