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February 2025 Tax Update Bulletin

Created on  | Last modified on 

Summary

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

Resolution

Accelerated Retirement Catchup Limits Based On The Secure Act 2.0  

 

Under the SECURE 2.0 Act, a higher catch-up contribution limit applies to employees aged 60-63 years who participate in certain retirement plans.  

 

Click this link for instructions on how to set up in Sage 50 

 

 

State and Local Tax Changes 

 

  1. Arkansas State Income Tax
    Withholding table and standard deduction changes.
  2. Illinois State Income Tax
    Withholding tax rate change.
  3. Indiana State Income Tax
    Withholding tax rate change.
  4. Louisiana State Income Tax
    Withholding formula changes.
    Click this link for Louisiana setup instructions.
  5. Montana State Income Tax
    Withholding table changes.
  6. North Carolina State Income Tax
    Withholding formula changes.
  7. North Dakota State Income Tax
    Withholding table changes.
  8. Oregon State Income Tax
    Withholding table changes, Federal tax adjustment changes, personal exemption change.
  9. Rhode Island Temporary Disability
    Wage base and contribution rate changes.
  10. Vermont State Income Tax
    Withholding table and withholding allowance changes.

 

2025 State Unemployment Wage Limits 

  

The following state unemployment wage limits apply for the tax year 2025. For details on how to apply the limits for your state, 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 

 

State 

Employee Annual Wage Limit 

State 

Employee Annual Wage Limit 

Alabama 

8,000 

Montana 

45,100 

Alaska 

51,700 

Nebraska 

9,000 

Arizona 

8,000 

Nevada 

41,800 

Arkansas 

7,000 

New Hampshire 

14,000 

California 

7,000 

New Jersey 

43,300 

Colorado 

27,200 

New Mexico 

33,200 

Connecticut 

26,100 

New York 

12,800 

Delaware 

12,500 

North Carolina 

32,600 

DC 

9,000 

North Dakota 

45,100 

Florida 

7,000 

Ohio 

9,000 

Georgia 

9,500 

Oklahoma 

28,200 

Hawaii 

62,000 

Oregon

54,300

Idaho 

55,300 

Pennsylvania 

10,000 

Illinois 

13,916 

Rhode Island 

29,800 

Indiana 

9,500 

South Carolina 

14,000 

Iowa 

39,500 

South Dakota 

15,000 

Kansas 

14,000 

Tennessee 

7,000 

Kentucky 

11,700 

Texas 

9,000 

Louisiana 

7,700 

Utah 

48,900 

Maine 

12,000 

Vermont 

14,800 

Maryland 

8,500 

Virginia 

8,000 

Massachusetts 

15,000 

Washington 

72,800 

Michigan 

9,000 

West Virginia 

9,500 

Minnesota 

43,000 

Wisconsin 

14,000 

Mississippi 

14,000 

Wyoming 

32,400 

Missouri 

9,500 

Puerto Rico 

7,000 

 

 

Virgin Islands 

31,100 

 

Bold and Red indicates the Wage Base Limit changed in the February 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 Next.  If there’s an update, the next window to appear will have an option to automatically update your forms.  It’s 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’re 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 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 20250201 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

  

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