1st January 2024 Tax Update Bulletin

Federal Tax Changes

Federal Income Tax Withholding 
The 2024 withholding tax tables changed.  Please note, the new filing statuses introduced as a result of the revised W-4 Form for 2020 and the prior statuses exist for those employees using 2019 and prior revision of the form.  For more information, please see: Payroll tax year 2020 W-4s

Social Security Wage Base
The 2024 social security wage base increased to $168,600.

State and Local Tax Changes

Alabama State Income Tax
Overtime exemption.

Arkansas State Income Tax
Withholding Table and Allowance updates.

California Disability Insurance
Withholding rate and taxable wage limit changed.

California State Income Tax
Withholding Table & Standard deduction changes and new filing status added.  New filing statuses added for Head of household, Married, Single and Married/2 Incomes.

Colorado Family and Medical Leave Insurance
Withholding rate and taxable wage limit changed.

Colorado State Income Tax
Withholding rate changes.
Click this link for setup instructions

Connecticut Paid Family Leave
Withholding rate changes.

Connecticut State Income Tax
Withholding Table and Allowance updates,Phase-out Add-back changes, and a new Recapture provision.

Hawaii Temporary Disability Insurance
Annual wage changed.

Illinois State Income Tax
Removed 2023 Catchup Allowance and standard allowance update.
Click this link for setup instructions

Indiana State Income Tax
First-time dependent allowance added.
Click this link for setup instructions

Kentucky State Income Tax
Allowance updates.

Massachusetts State Income Tax
Wage base and contribution rate changes.
Click this link for setup instructions

Massachusetts Paid Family and Medical Leave
Wage base and contribution rate changes.

Maine State Income Tax
Withholding Table & Phase out and Standard deduction changes.

Mississippi State Income Tax
Withholding Rate and Personal Exemption Changes.

Missouri State Income Tax
Withholding Table & Standard deduction changes.

Montana State Income Tax
Withholding Table & Standard deduction changes and new filing status added. New filing statuses added for Married/2 Incomes, Qualifying Widow(er), Head of Household.

Nebraska State Income Tax
Withholding Table and Allowance updates.

New Jersey State Disability Insurance
Taxable wage base and rate changes.

New Jersey Family Leave Insurance
Taxable wage base and rate changes.

New Mexico State Income Tax
Withholding Table changes.

New York Paid Family Leave
Taxable wage base and rate changes.

Ohio State Income Tax
Withholding Table changes.

Oklahoma State Income Tax
Withholding Table changes.

Oregon Paid Family Leave
Taxable wage base change.

Oregon State Income Tax
Withholding Table and Allowance updates.

Rhode Island State Income Tax
Withholding Table and Allowance updates.

South Carolina State Income Tax
Withholding Table and Allowance updates.

Washington Paid Family Leave
Taxable wage base and rate changes.

2024 State Unemployment Wage Limits

The following state unemployment wage limits apply for 2024.  For details on how to apply the limits for your state, please review the following articles in the Year-End Center. 
How to automatically update your user-maintained payroll taxes and benefits for the new year using the Update Wizard

Bold and Red indicates the Wage Base Limit changed in the January 2024 update.

Tax Forms 
 

Payroll Tax Forms: The payroll tax forms were updated within the Payroll Tax Form Selector window on or after December 20, 2023.  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 2023 form such as W-2’s, 940/943/945 but only see the 2022 forms listed then:

• Select the 2022 form that you want and click on OK. 
• If you have a current Sage 50 subscription, the next window will prompt you to update your forms.
• After taking the forms update, you will see the 2023 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 20240101 for releases 2023 and 2024.  Follow these steps to make sure that your tax update was applied:

For Releases 2023 and 2024:

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 or the Sage 50 Accounting User Community by going to https://communityhub.sage.com/us/sage50_us.

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