Sage 100

With all the confusion and possible missteps regarding which Tax Rules to use/not use for Overtime Earnings Codes, the following has been confirmed by Sage.

The ones marked Don't Use may not calculate taxes correctly and may also not populate the correct taxable wages and subject to buckets.

 The bottom line is to continue using the same Tax Rules that have been used in the past for overtime earnings codes.

With all the confusion and possible missteps regarding which Tax Rules to use/not use for Overtime Earnings Codes, the following has been confirmed by Sage.

The ones marked Don't Use may not calculate taxes correctly and may also not populate the correct taxable wages and subject to buckets.

 The bottom line is to continue using the same Tax Rules that have been used in the past for overtime earnings codes.

So now I'm having my customers switch the tax rules back to what they were before I told them to use the FLSA codes. I have the opposite of @Beth Bowers dumb luck. 

One of these customers has already processed TWO payrolls including OT and the FLSA codes. I've advised her to switch them back. What happens in the long run? Will a re-calculation with manual changes need to be made? I hesitate to ask Sage support.

Thanks!

With all the confusion and possible missteps regarding which Tax Rules to use/not use for Overtime Earnings Codes, the following has been confirmed by Sage.

The ones marked Don't Use may not calculate taxes correctly and may also not populate the correct taxable wages and subject to buckets.

 The bottom line is to continue using the same Tax Rules that have been used in the past for overtime earnings codes.

Did they get included in the new field in Benefits anyway?  If the only issue was under withholding, I don't think I'd worry about it.

So now I'm having my customers switch the tax rules back to what they were before I told them to use the FLSA codes. I have the opposite of @Beth Bowers dumb luck. 

One of these customers has already processed TWO payrolls including OT and the FLSA codes. I've advised her to switch them back. What happens in the long run? Will a re-calculation with manual changes need to be made? I hesitate to ask Sage support.

Thanks!

With all the confusion and possible missteps regarding which Tax Rules to use/not use for Overtime Earnings Codes, the following has been confirmed by Sage.

The ones marked Don't Use may not calculate taxes correctly and may also not populate the correct taxable wages and subject to buckets.

 The bottom line is to continue using the same Tax Rules that have been used in the past for overtime earnings codes.

Wait - WITHHOLDING - if it didn't calc FICA and Medicare, different issue

Did they get included in the new field in Benefits anyway?  If the only issue was under withholding, I don't think I'd worry about it.

So now I'm having my customers switch the tax rules back to what they were before I told them to use the FLSA codes. I have the opposite of @Beth Bowers dumb luck. 

One of these customers has already processed TWO payrolls including OT and the FLSA codes. I've advised her to switch them back. What happens in the long run? Will a re-calculation with manual changes need to be made? I hesitate to ask Sage support.

Thanks!

With all the confusion and possible missteps regarding which Tax Rules to use/not use for Overtime Earnings Codes, the following has been confirmed by Sage.

The ones marked Don't Use may not calculate taxes correctly and may also not populate the correct taxable wages and subject to buckets.

 The bottom line is to continue using the same Tax Rules that have been used in the past for overtime earnings codes.

If only there were a place that Sage could share this information publicly. Like a knowledgebase or a community forum or even a portion of the payroll tax table what's new. It's only 2026. Maybe by 2040 with the advent of AI Sage will figure out some way to share this information with the channel that pays them $350/year per "certification" to be consultants.

Maybe for $500 per cert they will take the idea under advisement.  You know... have a meeting or two to discuss sharing pricing with the people that actually have influence in buying it.

If only there were a place that Sage could share this information publicly. Like a knowledgebase or a community forum or even a portion of the payroll tax table what's new. It's only 2026. Maybe by 2040 with the advent of AI Sage will figure out some way to share this information with the channel that pays them $350/year per "certification" to be consultants.

I think there's a bit of a disconnect between the person/persons creating the documentation and those with the correct information.

The Overtime earnings type must be Overtime to have access to the check box for FLSA wages eligible for no tax.

I've come across a couple of customers who have their overtime earnings codes setup to use Pay Rate 2 or 3 and with a multiplier of 1. They must create overtime earnings codes using Pay Rate 1 and a multiplier of at least 1.5. The nontaxable OT portion calculation is using the multiplier. With a multiplier of 1 it will calculate the nontaxable overtime wages incorrectly.

A BIG bit of a disconnect.......

What happens if the multiplier is 2 (double time)?

I think there's a bit of a disconnect between the person/persons creating the documentation and those with the correct information.

The Overtime earnings type must be Overtime to have access to the check box for FLSA wages eligible for no tax.

I've come across a couple of customers who have their overtime earnings codes setup to use Pay Rate 2 or 3 and with a multiplier of 1. They must create overtime earnings codes using Pay Rate 1 and a multiplier of at least 1.5. The nontaxable OT portion calculation is using the multiplier. With a multiplier of 1 it will calculate the nontaxable overtime wages incorrectly.

That works, as well.  In the case of double time, it is one FOURTH of the amount, not one HALF because it's only the amount that would be required for overtime (only CA has rules actually requiring double time - every one else is just being nice).

I tested it out and it works.

A BIG bit of a disconnect.......

What happens if the multiplier is 2 (double time)?

I think there's a bit of a disconnect between the person/persons creating the documentation and those with the correct information.

The Overtime earnings type must be Overtime to have access to the check box for FLSA wages eligible for no tax.

I've come across a couple of customers who have their overtime earnings codes setup to use Pay Rate 2 or 3 and with a multiplier of 1. They must create overtime earnings codes using Pay Rate 1 and a multiplier of at least 1.5. The nontaxable OT portion calculation is using the multiplier. With a multiplier of 1 it will calculate the nontaxable overtime wages incorrectly.

I just received further clarification regarding OT tax rules:

Tax Rule -800105 FLSA Overtime Wages works properly and is OK to use. It has been available since payroll was rewritten for 2.X. 

DO NOT use Tax Rule -800151

Sage is working on a hot fix since the Tax Rules are controlled by SPA to change the description of Tax Rule -800151 to DO NOT USE and also put a check in tax calculation in case it is used to generate a message. 

Stay tuned for its release later this week.