Sage 100

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  • 1.  How to correct SAGE 100 STD Payroll Deduction & Tax Rule mistakes

    Posted 02-12-2024 18:48

    I have a client that has discovered that an AFLAC Disability Insurance deduction caused improper Tax calculations in the 2023 payrolls. They want to get it right going forward in 2024.  Mistake #1) Deduction code #14 - AFLAC Insurance was set up as a Cafeteria type deduction and assign W2 Box 12 code of "F".  I believe that this deduction should be a Standard deduction. This client has less than 250 employees, so Box 12 reporting is not required. I believe we will need to set up a new deduction code to "fix" the AFLAC deduction. Deduction code #14 cannot be changed mid-year.

    Mistake #2) In the Tax Profile set up by this client, along with Tax Rule (-805154) Section 125 Code DD EE Deduction was set to reduce FIT, Social Security Employer Tax, Social Security Employee Tax, Medicare Employer Tax, Medicare Employee Tax, AND FUTA tax. I don't believe the reduction of FUTA tax is correct. Can the existing Tax Profile be modified to stop reducing FUTA tax going forward?   TIA for any assistance.



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    Michael McDonald - Consultant
    Michael T McDonald CPA
    (616) 813-8887 - mike@mcdcpa.com
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  • 2.  RE: How to correct SAGE 100 STD Payroll Deduction & Tax Rule mistakes

    Posted 02-13-2024 09:14

    How many paychecks in total are in play?

    I have had similar issues in the past.  In a future payroll, enter the YTD deduction 14 total as a negative number.  After creating a new corrected deduction code, enter the deduction as a positive amount.  This will correct your taxable wages.  Be sure that you have enough total wages so you don't get calc error message stating your taxable wages are less than zero.

    Regarding the tax profile, I believe it is fluid enough to correct going forward.  Try it.  It is early in the year 



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    Jeff Schwenk
    Bottomline Software, Inc.
    (540) 221-4444
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  • 3.  RE: How to correct SAGE 100 STD Payroll Deduction & Tax Rule mistakes

    Posted 02-13-2024 18:09

    @Jeff Schwenk     Thanks for the suggestion. There are only two paychecks (salaried employees paid twice a month) involved for January 2024.  We should be able to correct the YTD tax calculation and YTD taxable wages with a new Deduction code. After looking at Tax Profile Setup, I realized I really wanted to modify the Tax Rule. After contacting SAGE Tech Support, I discovered you CANNOT modify a TAX Rule. Sage Tech Support confirmed that Tax Rule (-805154) Section 125 Code DD EE Deduction correctly reduces Federal FUTA taxable wages.  @ADMIN --- This can be moved out of Sage Urgent Support. 



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    Michael McDonald - Consultant
    Michael T McDonald CPA
    (616) 813-8887 - mike@mcdcpa.com
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    Original Message


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