July 2025 Tax Update Bulletin

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

Federal Tax Changes

 None

State and Local Tax Changes 

 

1. Expiration of Alabama Overtime Pay Exemption
   The Alabama income tax exemption applicable to overtime wages ended on June 30, 2025.

Click here for instructions

 

2. Georgia State Income Tax
   Withholding tax rate, standard deduction and dependent allowance changes.
3. Idaho State Income Tax
   Withholding table and allowance rate changes.
4. Maryland State Income Tax
   Withholding table and rate change. Added Qualifying Widower filing status.

Instructions for Maryland Residents Employed in Delaware
Click here for Setup Instructions

5. New York Paid Family Leave
   Withholding rate change.
6. Oregon TriMet Transit District (TM)
   Tax rate change. 
7. Oregon Lane Transit District (LTD)
   Tax rate change. 
8. Pennsylvania – City of Philadelphia (Residents)
   Tax rate change.
9. Pennsylvania – City of Philadelphia (Non-Residents)
   Tax rate change.
10. Utah State Income Tax
    Withholding rate change.
11. Virginia State Income Tax
    Withholding table and standard deduction change.

 

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 

 

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	31,400
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	29,200
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	31,000

 

Bold and Red indicates the Wage Base Limit changed in the July 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 20250701 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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