Posts Tagged ‘Payroll Tax’

Have you updated your payroll tax tables? You’ll want to do that sooner than later.

Posted on Tuesday, January 4th, 2011

In fact, you’ll want to update your tax tables as soon as possible – BEFORE you run your first payroll of 2011. Usually you have until January 31 to update the tables, but with the legislature’s reduction of the Social Security tax to 4.2%, if you don’t update the tax tables prior to running your first payroll; you’ll have a lot of manual work in the form of reimbursements to employees ahead of you.
If you are using Sage Abra or Sage MIP Fund Accounting Payroll all updates are available for download. Here is some information regarding the changes to these solutions:
MIP –
Version 10.2.8 released 1/4/11 with the following tax table and other updates included:

  • Employee social security withholding rate moves to 4.2% – no change to wage base
  • Earned Income Credit no longer applicable
  • Withholding tables updated to reflect the new 2011 federal rates
  • HIRE Act expired effective 12/31/2010. All HIRE Act benefit codes should be changed to Discontinued.
  • Clients must have installed V10.2.6 prior to upgrading to V10.2.8

There will be further updates as necessary for states whose rate changes rely on federal updates and have not as yet published their withholding tables for 2011.
All releases are available via the Support Knowledge Base

Abra –
• Released the week of Dec 27 and includes:

  • All tax rate changes to both Social Security, and Railroad Tier 1 wages, as well as federal withholding tax rate changes
  • Other relevant changes as per the new legislation
  • As well, as additional states provide their withholding tables, further updates will become available for download by the Support Plus Online

If, by chance, you have run a payroll already and need some help, please let us know.

 

Earning the trust of nonprofit organizations and human resource departments since 1994, Huckstep & Associates supports clients in Missouri, Michigan, Texas, Arkansas, Kansas, Colorado, Oklahoma, Texas, Minnesota, and throughout central United States.