When are Payroll Tax Table Updates available?

Sage BusinessWorks typically releases two Payroll Tax Table Updates each year:

Early Tax Table Update

• Released in early January.
• Includes Federal and State tax table changes reported before the release date.

Late Tax Table Update

• Released in late February.
• Includes Federal and State tax table changes reported after the early release.

You can process a payroll or two before installing the update, but complete your W-2 processing before installing the new-year tax tables.

What versions receive current-year tax updates?

The current and previously supported versions of Sage BusinessWorks receive Payroll Tax Table Updates.

If you're using an unsupported version:

• Upgrade to a supported version, or
• Manually update your tax tables.

When do I install the Payroll Tax Table Update?

Install the Payroll Tax Table Update after:

• Processing payroll year-end activities.
• Printing W-2 forms.
• Completing Federal and State tax reporting.

Installing the update after year-end processing prevents issues with OASDI and state wage limits on prior-year forms.

How do I download the Payroll Tax Table Update?

1. Visit the Sage BusinessWorks Download Portal.
2. Download Sage BusinessWorks tax updates.
3. Install the update on the server and all applicable workstations.

What happens if I install the update too early?

Installing the update before year-end reporting can change:

• OASDI limits
• State wage limits
• Various payroll calculations used by year-end forms

If this occurs:

1. Manually restore the prior-year OASDI and state limits.
2. Process your W-2 and year-end tax forms.
3. Restore the current-year limits after year-end processing. For further instructions see, Installed the Payroll Tax Table update early.

How do I manually update tax limits and rates?

Update SUI, OASDI, or SDI limits

• Verify and modify limits and rates directly in the Payroll tax maintenance screens when necessary. Verify rates in PR, Taxes, Maintain Tax Tables and PR, Taxes, Activate States.

Update tax tables manually

For further information, see Manually update the payroll tax table allowances, limits, and rates.

1. Select PR, Taxes, Maintain Tax Tables.
2. Select the applicable Federal or State table.
3. Update Allowances, limits, or rates as required.
4. Save the changes.

Will Federal and State income tax withholding self-adjust?

No.

• Federal and State income tax withholding doesn't automatically self-adjust if you process payroll before installing tax updates.
• Any withholding difference can affect employees' year-end tax liability.
• If necessary, manually adjust withholding amounts in a future payroll.
• See Manually adjust the Federal and State income tax withholding for further information.

Do Payroll Tax Table Updates update sales tax rates?

No.

Payroll Tax Table Updates affect only Payroll tax tables.

To update sales tax rates:

1. Select AR, Utilities, Sales Tax, Maintain.
2. Update the applicable sales tax rates.