Update to Payroll Tax Update Utility

The Payroll Tax Update utility has been enhanced to provide more options and information.

• A Reset button has been added. Use this button if you’ve downloaded a tax update but not installed it, and you want to download the latest update before completing the installation.
• A Force Payroll Tax Update check box has been added. Select this check box if you need to download and reinstall the latest tax update, even if it’s already installed. This check box is available based on a new Payroll security event added to Role Maintenance: Allow Payroll Tax Update to be Forced When No Changes Exist.
• A Current Status field has been added. Statuses are listed below:
• System Is Up To Date: Your system is up to date. No Update is required.
• Pending Changes: There are updates available online that you can download and install.
• Waiting for Installation: The update is ready to be installed.

Changes for Revised W-4 Form

To accommodate the revised W-4 form for 2020, the following changes have been made on the Taxes tab in Employee Maintenance:

• New filing statuses are available for the Federal tax group. When you click the Lookup button in the Filing Status field, you’ll see the following new filing statuses in addition to the ones that previously existed:
• HH1 -- Head of Household 2020 or Later
• HH2 -- Head of Household 2020 Ckbx (check box) 2c
• MJ1 -- Married FJ (filing jointly) 2020 or Later
• MJ2 -- Married FJ 2020 Ckbx 2c
• NR1 -- NR (nonresident) Alien 2020 or Later
• NR2 -- NR Alien 2020 Ckbx 2c
• S1 -- Single 2020 or Later
• S2 -- Single 2020 Ckbx 2c

No changes are needed for employees who have already submitted the older version of the W-4 form. But for any employees who submit the revised W-4 form, you’ll need to select the applicable filing status that has "2020" in the description. If the check box for step 2(c) is selected on the employee’s W-4 form, select a filing status that includes "Ckbx 2c" in the description.

Note: You’ll be able to see these new filing statuses in Employee Maintenance after installing the payroll tax update that will be released in mid-December, 2019. However, the withholding tax will not calculate correctly until you have upgraded to Sage 100 Payroll 2.20.

• The fields listed below are available only if one of the new filing statuses is selected.
• Dependent Amt -- Use this field for box 3.
• Other Income Amt -- Use this field for box 4(a).
• Deductions Amt -- Use this field for box 4(b)

If the employee has an amount entered in box 4(c) on the revised W-4 form, select Add an Amount in the Tax Calc Override field and then enter the amount in the Override Amt field.

Revised Arkansas Filing Statuses

New filing statuses are available for the state of Arkansas. You’ll be able to see these new filing statuses in Employee Maintenance after installing the payroll tax update that will be released in mid-December, 2019. However, the withholding tax will not calculate correctly until you have upgraded to Sage 100 Payroll 2.20.