Sage 100

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  • 1.  Payroll Guru's. Local Tax Dilemma

    Posted 10-11-2020 16:27
    Hi Everyone
    v2020, PR 2.20.2.  In Legacy, Employer (I think as a convenience to employees), was deducting Dublin OH local tax (2%) as employees worked in Dublin, OH.  But for those employees who then lived in Columbus OH and subject to 2.5% and receive credit for 2% paid to Dublin, the employer would withhold just a .5% for Columbus.  I believe at year end, they file a Columbus return indicating full liability of 2.5% and credit of 2% paid to Dublin.
    In 2.20, I can set the profile to Work in Dublin, Reside in Columbus but it deducts 2% and 2.5% respectively with no credit of for the 2% Dublin.
    I tried to tell the Payroll Person, that he can take 1 (Dublin) and they have to reconcile and pay balance of Columbus at year end.  He didn't like that idea.
    At this point it's only 2 employees subject to this, so he is willing to do manual taxes for these 2, change the Columbus tax to be the .5% but it's clunky at best.
    Am I missing something on how to accommodate the Legacy style of withholding?

    Thanks
    N


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    Nancy Hanson
    Blytheco LLC
    Eagan MN
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  • 2.  RE: Payroll Guru's. Local Tax Dilemma

    Posted 10-12-2020 09:51
    @alan niergarth is very familiar with Ohio local taxes.  Perhaps he can assist her. ​

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    Jeff Schwenk
    FORMER 90M Board Member
    Bottomline Software, Inc.
    Waynesboro VA
    540-221-4444
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  • 3.  RE: Payroll Guru's. Local Tax Dilemma

    Posted 10-12-2020 14:51
    Edited by alan niergarth 10-12-2020 14:55
    We came up with a work around that the client wasn't thrilled about.  I would have to blow the dust off this but I think they ultimately concluded they would be tracking it outside of Sage.  We opened a case with Sage at the time.  This is the concept of Reciprocity and it is not supported by Sage PR.

    Here was the response from Sage - Linda Raby.

    Alan,

     

    I did discuss with engineering.  First of all Courtesy taxes are not supported in Sage 100 which I think we knew.  However, since this seems to be coming up more often I was asked to create 2 defects.  One is to get the Spa/Clad global group to consider supporting courtesy or tax reciprocity.  The second defect is to allow the Additional Percentage field to use a negative as we discussed.  I’m sure we could do the latter to Sage 100 a lot quicker than we can get the global team to determine and design the courtesy tax.  If the negative Additional % is approved it will still need to go thru testing before it will be released and although it seems a simple change, I do not know what other things this might be a risk to.  I don’t think the severity would demand a hotfix but I could probably get a Pre-release if the customer will sign a document before the next release in June.  It will not make the March release of PR 2.20.1.0 as the cutoff is long past.  I can ask if the pre-release would be given out if you want to wait until I find that out.

     

    Thank you,

    Linda

     


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    alan niergarth
    Velosio LLC
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  • 4.  RE: Payroll Guru's. Local Tax Dilemma

    Posted 10-12-2020 20:22
    Thanks Alan, I assume you didn't wait for a prerelease and we are all hoping it's in the next release of payroll?

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    Nancy Hanson
    Blytheco LLC
    Eagan MN
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  • 5.  RE: Payroll Guru's. Local Tax Dilemma

    Posted 10-13-2020 13:15

    Alan,

     

    I will check with Engineering on the status of this so I get the updated status.

     

    I know courtesy taxes are not supported in the SPA and I don't think they have any plans to do so.

     

    I think they were researching the workaround to change the % to allow negative in employee maintenance. That we can do on the Sage 100 side.

     

    Thanks,

    Linda



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    alan niergarth
    Velosio LLC
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  • 6.  RE: Payroll Guru's. Local Tax Dilemma

    Posted 10-19-2020 17:22
    Edited by alan niergarth 10-19-2020 17:26


    @Nancy Hanson  - this one is for you.  We could set up a negative local override amount to reduce the secondary city (columbus) to the appropriate percentage withholding.  like 2% (from tax engine) to 1% using a negative 1% overrirde.  this would put the right amount on the paycheck and accumulate the correct actual amount in the local tax buckets.  

    Alan,

     

    I was just updated on the tax issue for the above case.   Since this is for courtesy taxes and isn't supported in the SPA, we are going to implement the negative % suggestion.  That is the only thing that we can do at this point. Do you want us to proceed with that?   

    My guess is that the courtesy taxes will never be supported or if they are it will take many years, if ever.

    Thank you,

    LInda



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    alan niergarth
    Velosio LLC
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  • 7.  RE: Payroll Guru's. Local Tax Dilemma

    Posted 10-19-2020 22:49
    Thanks Alan, it would be nice to have this available as a workaround.
    I really appreciate the ask you did for me.
    N

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    Nancy Hanson
    Blytheco LLC
    Eagan MN
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