Note: All checks for the year are recalculated using your current tax setup. Contact Sage Support or your certified Sage consultant if any of the following apply to you:

• Employees' residence state changed mid-year
• Employees' residence local changed mid year
• New taxes were added mid-year including:
  • WAPFL - Washington Paid Family Leave (2019)
  • DCPFL - District of Columbia Paid Family Leave (2019)
  • MAPFL - Massachusetts Paid Family Leave (2019)
  • NYPFL - New York Paid Family Leave (2019)

To recalculate subject-to for prior periods (prior year, prior quarter, and prior month) when you use named files, follow the steps below:

1. Determine the names of all transaction files that contain earnings information for the each period you need to recalculate. Print the Check Activity report or review the Check Activity inquiry to determine which files contain earnings information for prior periods. Make note of the file name and transaction dates for each file.
2. Print and review the Prior Period Subject-to Employee and Prior Period Subject-to Employer reports.
3. Verify that all of the transaction files that have current and prior year earnings information are in the current data folder where you will recalculate subject-to amounts.
4. Use File Tools to backup all Payroll files that contain earnings information for the current and prior year (the file extensions *.prm and *.prt indicate Payroll master and transaction files types.) For example, Quarter_1_2006.prt, Quarter_2_2006.prt, Executive.prm. Select the appropriate link below for details on how to create a backup.
5. From the Setup menu, select Taxes, Tax Rates, and verify the tax limits and tax rates in the tax file are correct for the period you need to recalculate.
   Note: If the limits are not correct for the recalculation period, either change the limits temporarily or restore a backup tax file that contains the correct limits. Select the link below for steps to restore a backup tax file.
6. Recalculate subject-to as follows:
   1. From the Tools menu, select Recalculate Subject-To.
   2. Select the transaction file that contains the oldest earnings information for the period you need to recalculate, then click OK.
      Note: It is important to recalculate the subject-to amounts for the oldest file first so that the correct amounts update the taxable and subject-to totals for the correct period. Select the file that contains earnings from the beginning of the prior year and select all additional files in chronological order until the subject-to and taxable amounts are recalculated through the current period.
   3. Select Prior Year.
   4. Select the Clear taxable and subject-to period totals check box.
      Note: Select this check box when you have only one Payroll transaction file or when you select the oldest file to recalculate.
   5. Select the I have verified that the tax file contains the correct limits for the prior year check box.
   6. If you want to limit the number of employees recalculating, click Ranges, then select the employees to recalculate. Click OK.
   7. Click Printer Setup, make any necessary print selections, and then click OK.
   8. Click Start, then click Yes to verify that you have backed up your Payroll files.
7. Repeat step 6 for each file that contains earnings transactions for the current and prior year. Do not select the Clear taxable and subject-to period totals check box for these additional files. See the note above (step 6d) for details on when to select this check box.
8. To verify the new taxable and subject-to amounts, print the Prior Period Subject-to Employee and Prior Period Subject-to Employer reports.
9. Restore the current year tax limits and rates before you process any Payroll for the current period. If you elect to download taxes, verify your unemployment rates and reciprocity.

Notes:

• Only the employee and employer taxable and subject-to amounts recalculate and change. If necessary, you can adjust tax amounts manually after you review the subject-to reports.
• It is important to recalculate the subject-to amounts for the oldest file first so that the correct amounts update the taxable and subject-to totals.
  Review the table below for an example of the correct file selection order when you recalculate subject-to and taxable amounts with earnings in multiple named transaction files:

  Dates of earnings in the transaction file	Transaction file name	Recalculation order	Select the Clear taxable and subject-to period totals check box?
  January 1 March 31, 2006	Quarter_1_2006.prt	first	Yes
  April 1 June 30, 2006	Quarter_2_2006.prt	second	No
  July 1 September 30, 2006	Quarter_3_2006.prt	third	No
  October 1 December 31, 2006	Quarter_4_2006.prt	fourth	No