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January 2020 Sage 50 Payroll Solutions Update 

Below are the changes included in the January 2020 Sage 50 Payroll Solutions Update for Sage 50 US Accounting, release 2020.

Federal Tax Changes

1.       Federal Income Tax Withholding 
The 2020 allowance amount and withholding tax tables changed. New filing statuses were introduced as a result of the revised W-4 Form for 2020. 

2.       Social Security Wage Base
The 2020 social security wage base increased to $137,700.

State and Local Tax Changes

1. Alaska Employee State Unemployment Tax
   The 2020 wage base increased and the rate is unchanged.
   
   
2. California State Disability Insurance
   The 2020 wage limit increased.
   
   
3. California State Income Tax
   The 2020 withholding tables changed.
   
   
4. Hawaii Temporary Disability Insurance
   The 2020 wage limit decreased.
   
   
5. Illinois State Income Tax
   The 2020 amounts for allowances changed.
   
   
6. Iowa State Income Tax
   The 2020 standard deduction amounts and withholding tables changed.
   
   
7. Kentucky State Income Tax
   The 2020 standard deduction amount changed.
   
   
8. Maine State Income Tax
   The 2020 standard deduction amounts and withholding tables changed.
   
   
9. Michigan State Income Tax
   The 2020 standard deduction amount changed.
   
   
10. Minnesota State Income Tax
    The 2020 withholding tables changed.
    
    
11. Missouri State Income Tax
    The 2020 withholding tables changed.
    
    
12. New Jersey State Disability Insurance, Unemployment Insurance and Family Leave Insurance
    The 2020 rates and taxable wage base changed.
    
    
13. New York Paid Family Leave
    The weekly wage base limit and rate changed for 2020.
    
    
14. New York State Income Tax
    The 2020 withholding tables changed.
    
    
15. New York Yonkers Local Income Tax
    The 2020 withholding tables changed.
    
    
16. North Carolina State Income Tax
    The 2020 standard deduction amount and withholding tables changed.
    
    
17. North Dakota State Income Tax

The 2020 withholding tables changed.

18. Ohio State Income Tax
    The 2019 multiplier rate wage changed.
    
    
19. Oregon State Employer Tax – Tri-Met and Lane Districts
    The 2020 rates changed.
    
    
20. Rhode Island State Disability Insurance
    The 2020 wage base increased.
    
    
21. Virginia State Income Tax
    The withholding tables changed for 2020.
    
    
22. Washington Paid Family Leave
    The wage base limit changed for 2020.

2020 State Unemployment Wage Limits

The following state unemployment wage limits apply for 2020.  
 

Bold and Red indicates the Wage Base Limit changed in the January 2020 update.

Tax Forms 
 

Payroll Tax Forms: The payroll tax forms are now all updated within the Payroll Tax Form Selector window as of December 16, 2019.   To receive an update, select a Federal or State form and click on Next.  If there is an update, the next window to appear will have an option to automatically update your forms.   It is strongly recommended that you take all forms updates.

NOTE:  The payroll forms update also updates the forms lists that appear in the Payroll Tax Form Selector window.   If you are trying to run a year-end 2019 form such as W-2’s, 940/943/945 but only see the 2018 forms listed then:

• Select the 2018 form that you want and click on OK. 
• If you have a current Sage 50 Payroll Solutions or Business Care subscription, the next window will prompt you to update your forms.
• After taking the forms update, you will see the 2019 year-end forms listed in the Payroll Tax Form Selector window.

Special Note: The forms provided by Sage 50 are approved by the taxing authorities.   A few states have not yet approved their forms.   Any form, that can be printed and mailed, and is awaiting approval, will print with the banner “Record Copy Do Not File”.   We will be removing the “Record Copy” as the taxing agencies approve the forms.  There will be periodic online updates for these forms via the Automatic Update feature in Payroll Tax form. 

Making Sure That Your Tax Update is Applied

The version for this tax update is 20200101 for release 2020. Follow these steps to make sure that your tax update was applied:

For Release 2020:

1.     Open your Sage 50 company.

2.     Select Help > About Sage 50 Accounting.

3.     Confirm that the Installed Tax Update version number matches the version number listed above.

 Getting Help and Customer Support 

Help within your Sage 50 application is a great source of information.  Help can be accessed from a Sage 50 window by clicking on the Help button in the toolbar or pressing F1 key while on a field.

In addition to Help, you can access Support by going to http://www.sagecity.com/resources or the Sage 50 Accounting User Community at https://sagecity.na.sage.com/support_communities/sage50_accounting_us.