2nd January 2025 Tax Update Bulletin

This bulletin describes the changes included in the 2nd January 2025 Sage 50 Payroll Solutions Update for Sage 50 Accounting, Release 2024.

Federal Tax Changes

Federal Income Tax Withholding 
The 2025 withholding tax tables changed. Please note, the new filing statuses introduced as a result ofthe 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

State and Local Tax Changes 

Alabama State Income Tax
Overtime Exemption formula name changed from ALSIT back to ALSITT.

2025 State Unemployment Wage Limits 

The following state unemployment wage limits apply for tax year 2025. 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 2^nd January 2025 tax update. 

Tax Forms  
  

Payroll Tax Forms: The payroll tax forms were updated within the Payroll Tax Form Selector window on or after December 20, 2024. 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 2024 form such as W-2’s, 940/943/945 but only see the 2023 forms listed then: 

• Select the 2023 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 2024 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.  

W-2 and 1099 Tax Forms Instructions:  

Click this link for 1099 Forms Instructions 

  
Click this link for W-2 Forms Instructions 

Making Sure That Your Tax Update is Applied 

The version for this tax update is 20250102 for release 2024. Follow these steps to make sure that your tax update was applied: 

For Release 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.