Sage 100

Hi
In setting tax rules for earnings, if the taxability of some rules (IE: Illness, Bereavement, Vacation, Holiday, Regular) is all the same, is there a purpose or rationale for assigning the specific rules to the earnings code.  (IE: Set Sick, Vacation, Holiday Earnings Codes all to Regular Wages).

Speaking of Tax Rules:  In the Deduction Code Rules, the 401k Catchup EE Deduction doesn't reduce wages in the same way as the 401k EE Deduction?  Is there really a difference in how they affect wages/taxes?

Same thing with Tax Profiles:
Customers have WI employees working in MN, but customer only withholds MN State Tax and pays MN Unemployment, Is it really necessary to break out the MN Works, WI Resides?  This one might be harder to answer.  There is no reciprocity between the 2 states.  When I do the MN Works, WI Resides, it wants to withhold MN State at NR rates (which are the same) and doesn't indicate to withhold WI State Tax.  Would there be any affect on reporting later on?


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Nancy Hanson
Blytheco LLC
Eagan MN
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These are all great questions.  I ask myself the same about the earnings every time I do a new migration.  What IS the big deal.  Is there concern about how states make the distinction.  It didn't matter for 20+ years of the prior version, why is it so complicated now???  Seems like there should be a 500 page CCH manual that explains the new system.  Even a FIVE page manual would be an improvement.  The state issue is really messy when you live in a corner with three or four states where an employee could potentially work based on company needs that week.  I have a health care operation that staff moves across borders to work with regularity.  PITA.

This would make a GREAT session at MOTM!!  Will have to look at the agenda to see if it is already.  Fresh content, a great reason to attend.

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Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
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Great questions, Nancy. Although the taxability of illness vs. vacation vs. holday is the same (just like regular wages), I use the like I would use Product Lines in inventory. They may all go to the same accounts but I might want to be able to report on them separately for some kind of metrics. I generally mention to the client that while there is no difference from a taxlng standpoint, they can be used as an informational determinate. As long as the categories are there, I suggest using them, in case some day in the future we want them.

I struggle with the profiles as well. The only reason I use them is because I don't want to be responsible for knowing payroll tax law and nexus. You know the resiprosity between MN and WI. But what if it changes. Or like me, I don't even know that. These things take the onus off of me and puts them on the software.

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Billy Balser
Sage 100 Consultant
Blytheco LLC
Atlanta GA
9495839500
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The problem with this, @Billy Balser is that Sage accepts no responsibility for making sure they're right.  We still have to make sure they're set up correctly.  Group term life is a perfect example - they have 2 codes available to pick from and neither calculates the taxes/taxable wages correctly.  They could have made this so much easier and totally blew it.  ​

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Mary Jo Krueger
Senior Software Consultant
CLA (CliftonLarsonAllen LLP)
Appleton WI
920-996-1176
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Original Message:
Sent: 12-23-2019 08:41
From: Billy Balser
Subject: General Payroll Setup Questions

Great questions, Nancy. Although the taxability of illness vs. vacation vs. holday is the same (just like regular wages), I use the like I would use Product Lines in inventory. They may all go to the same accounts but I might want to be able to report on them separately for some kind of metrics. I generally mention to the client that while there is no difference from a taxlng standpoint, they can be used as an informational determinate. As long as the categories are there, I suggest using them, in case some day in the future we want them.

I struggle with the profiles as well. The only reason I use them is because I don't want to be responsible for knowing payroll tax law and nexus. You know the resiprosity between MN and WI. But what if it changes. Or like me, I don't even know that. These things take the onus off of me and puts them on the software.

------------------------------
Billy Balser
Sage 100 Consultant
Blytheco LLC
Atlanta GA
9495839500
------------------------------

When it comes to tax rates and computations, @Mary Jo Krueger, I agree with you whole-heartedly. But when it comes to state/jurisdictional nexus, I'm going with Sage unless the client's CPA gets involved (as I typically suggest they do).  So if an employee works in Ohio and lives in Kentucky, I'm going to set them up that way. If the client complains that taxes are now being withheld for Kentucky and they never were before, I'm not going to change the residence without the blessing of the CPA. It's possible the client is not treating taxes correctly now.

------------------------------
Billy Balser
Sage 100 Consultant
Blytheco LLC
Atlanta GA
9495839500
------------------------------

Original Message:
Sent: 12-23-2019 09:12
From: Mary Jo Krueger
Subject: General Payroll Setup Questions

The problem with this, @Billy Balser is that Sage accepts no responsibility for making sure they're right.  We still have to make sure they're set up correctly.  Group term life is a perfect example - they have 2 codes available to pick from and neither calculates the taxes/taxable wages correctly.  They could have made this so much easier and totally blew it.  ​

------------------------------
Mary Jo Krueger
Senior Software Consultant
CLA (CliftonLarsonAllen LLP)
Appleton WI
920-996-1176
------------------------------


Original Message:
Sent: 12-23-2019 08:41
From: Billy Balser
Subject: General Payroll Setup Questions

Great questions, Nancy. Although the taxability of illness vs. vacation vs. holday is the same (just like regular wages), I use the like I would use Product Lines in inventory. They may all go to the same accounts but I might want to be able to report on them separately for some kind of metrics. I generally mention to the client that while there is no difference from a taxlng standpoint, they can be used as an informational determinate. As long as the categories are there, I suggest using them, in case some day in the future we want them.

I struggle with the profiles as well. The only reason I use them is because I don't want to be responsible for knowing payroll tax law and nexus. You know the resiprosity between MN and WI. But what if it changes. Or like me, I don't even know that. These things take the onus off of me and puts them on the software.

------------------------------
Billy Balser
Sage 100 Consultant
Blytheco LLC
Atlanta GA
9495839500

That's been the interesting thing about the new payroll - how many people didn't know about some obscure employer taxes that are in certain states.

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Beth Bowers
Mom to Samson, Peanut, ChiChi, Canton, Cagney and Daisy (NO Oxford comma - shriek!)
Beth Bowers
269-445-1625
------------------------------

Original Message:
Sent: 12-23-2019 11:43
From: Billy Balser
Subject: General Payroll Setup Questions

When it comes to tax rates and computations, @Mary Jo Krueger, I agree with you whole-heartedly. But when it comes to state/jurisdictional nexus, I'm going with Sage unless the client's CPA gets involved (as I typically suggest they do).  So if an employee works in Ohio and lives in Kentucky, I'm going to set them up that way. If the client complains that taxes are now being withheld for Kentucky and they never were before, I'm not going to change the residence without the blessing of the CPA. It's possible the client is not treating taxes correctly now.

------------------------------
Billy Balser
Sage 100 Consultant
Blytheco LLC
Atlanta GA
9495839500
------------------------------


Original Message:
Sent: 12-23-2019 09:12
From: Mary Jo Krueger
Subject: General Payroll Setup Questions

The problem with this, @Billy Balser is that Sage accepts no responsibility for making sure they're right.  We still have to make sure they're set up correctly.  Group term life is a perfect example - they have 2 codes available to pick from and neither calculates the taxes/taxable wages correctly.  They could have made this so much easier and totally blew it.  ​

------------------------------
Mary Jo Krueger
Senior Software Consultant
CLA (CliftonLarsonAllen LLP)
Appleton WI
920-996-1176


Original Message:
Sent: 12-23-2019 08:41
From: Billy Balser
Subject: General Payroll Setup Questions

Great questions, Nancy. Although the taxability of illness vs. vacation vs. holday is the same (just like regular wages), I use the like I would use Product Lines in inventory. They may all go to the same accounts but I might want to be able to report on them separately for some kind of metrics. I generally mention to the client that while there is no difference from a taxlng standpoint, they can be used as an informational determinate. As long as the categories are there, I suggest using them, in case some day in the future we want them.

I struggle with the profiles as well. The only reason I use them is because I don't want to be responsible for knowing payroll tax law and nexus. You know the resiprosity between MN and WI. But what if it changes. Or like me, I don't even know that. These things take the onus off of me and puts them on the software.

------------------------------
Billy Balser
Sage 100 Consultant
Blytheco LLC
Atlanta GA
9495839500