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Sage 100 2017 w/ Payroll not Compliant?

  • 1.  Sage 100 2017 w/ Payroll not Compliant?

    Posted 11-04-2019 09:38
    Hi All,

    Customers have been contacting me about this notice below they have been gettings saying after January Withholding will no longer calculate correctly and they will have to use the IRS calculator if not on 2018 or above. Does this mean any client on 2017 with Payroll should be immediately upgraded to 2018 or above even though 2017 is still in support for another 9 months or so? How have you been handling this with your clients?

     

     

    Government compliance

     

    Action Required: W-4 form changes effective January 1, 2020

    Notice 19-F | October 31, 2019

     

     

    The Internal Revenue Service made substantial changes to the tax code that materially impact the 2020 payroll tax year. As a result of these changes, the IRS released a new W-4 form. As you prepare for the next payroll tax year, you need to be aware of some important changes.

    What you need to know
    • Any new employee starting January 1, 2020 or later must use the new W-4 Employee Withholding Certificate form.
    • Effective January 1, 2020 any employee that needs to make changes to their withholdings must use the new W-4 Employee Withholding Certificate form.
    • Sage 100 2017 and earlier will not support the additional fields necessary to correctly calculate federal withholding taxes.

    For more detailed information about this issue, please see the IRS FAQs regarding the new W-4 form. A draft of the new W-4 form has been provided here by the IRS.

    Action required
    • If you are using Sage 100 2018 or 2019 installation Payroll 2.20.0, due to be released mid-December 2019, and any later updates that are released.
    • If you are using Sage 100 2017 or earlier you will need to work with your partner and upgrade to Sage 100 2018 or 2019 to remain compliant.

    Note: Sage 100 Payroll is a separate install from Sage 100 2018 and 2019. New fields in Employee Maintenance for entering the Dependent Amount, Other Income Amount, and Deductions Amount for 2020 W-4 forms will be available only in Sage 100 Payroll 2.20.0 and later.

    Important: If your upgrade is not complete before January 1, 2020 the federal withholding for your employees will not be calculated correctly. You will need to use the IRS calculator to manually calculate federal withholding for any employees who use the new W-4 for every payroll until you have upgraded.

    Questions?

    Visit the Sage City Customer Resources page at www.SageCity.com/Resources page for additional resources, including links to Sage Knowledgebase, Sage City and Sage University, as well as Live Chat and Online Case submission.

     


    ------------------------------
    Jesse Braun
    Vrakas/Blum Computer Consulting, Inc.
    ------------------------------


  • 2.  RE: Sage 100 2017 w/ Payroll not Compliant?

    Posted 11-04-2019 11:44
    My take is that things will still work perfectly fine in the old P/R (of course based on the TTU that's currently installed, of which it's expected that no TTU's will be provided after 1-31-20 - and assuming the client's system and/or P/R won't shut off or go into read-only), except that taxes won't technically be calculated entirely correctly based on the new rules, etc. that are apparently now present in the new P/R, but I assume they'll still calculate just like they have been all along – so I guess the tax calc in the old P/R will be off at least slightly, but I can't imagine it'll be a huge difference; plus it'll all come out in the wash upon employees filing their taxes.  So I don't necessarily agree with the statement about having to "manually calculate federal withholding", because manual tax calc should only be needed if you really want to make sure taxes are absolutely correct in the old P/R 'based on the new rules'.  Now with that being said, it's already Nov 4th so that leaves a small window for client's to Upgrade before 12/31, plus it'd be relative to when they're first informed about this with respect to Sage 100.

    This also seems similar to Sage's push to-date for the new P/R re: the fact that no TTU's will be released after 1-31-20, because realistically you can manually edit the tax tables in the old P/R, plus history has shown that the January TTU typically contains the major changes for the new year; subsequent TTU's not typically as impactful.

    ------------------------------
    - Brett
    ------------------------------



  • 3.  RE: Sage 100 2017 w/ Payroll not Compliant?

    Posted 11-05-2019 08:59
    I'm getting calls from clients based on the notice sent by SAGE Software.  Client's want to know exactly what Federal Tax calculation will not be correct if they stay with Payroll v2017. Can someone help me explain the details to my client?

    ------------------------------
    Michael McDonald - Consultant
    Michael T McDonald CPA
    616-813-8887 - mike@mcdcpa.com
    ------------------------------

    Original Message


  • 4.  RE: Sage 100 2017 w/ Payroll not Compliant?

    Posted 11-05-2019 09:05

    I had two panic calls last week and they are asking for detail as well.   Interested in hearing other opinions and I plan on calling our CPA to see if they can provide additional detail.

     

    Thanks,
    Pam  

     

    Sent from Mail for Windows 10

     



    ------Original Message------

    I'm getting calls from clients based on the notice sent by SAGE Software.  Client's want to know exactly what Federal Tax calculation will not be correct if they stay with Payroll v2017. Can someone help me explain the details to my client?

    ------------------------------
    Michael McDonald - Consultant
    Michael T McDonald CPA
    616-813-8887 - mike@mcdcpa.com
    ------------------------------


  • 5.  RE: Sage 100 2017 w/ Payroll not Compliant?

    Posted 11-05-2019 09:12
    https://www.irs.gov/newsroom/irs-statement-on-form-w-4

    https://www.irs.gov/pub/irs-dft/p15t--dft.pdf

    No personal exemptions. 

    Withholding is simply based on income and filing status. 

    I see no reason why the legacy TTU couldn't calculate this. Just ignore exemptions and replace the table.

    ------------------------------
    Eric Lunceford
    First Mate Business Solutions
    Oklahoma City, OK
    877-880-8960
    https://www.firstmatellc.com/
    ------------------------------

    Original Message


  • 6.  RE: Sage 100 2017 w/ Payroll not Compliant?

    Posted 11-06-2019 11:11
    1. Since the W2 form changes pretty regularly - and these often require IRD to connect to Aatrix - I would feel comfortable telling a customer who uses payroll to get used to typing their W2 forms if they were not on a current payroll release.

    2. Sage long ago very publicly said they will not issue program fixes to legacy payroll for calculation issue brought about by new tax-withholding rules.​ Your experience with this will vary by state. I recall several members bringing up issues where tax calc wouldn't work properly without a fix -- in other words, the days of being able to modify the tables manually and being "ok" in terms of tax computation is likely gone for those states with more complex tax computations.

    It is a BAD idea to give a customer any re-assurance that they will be ok if they just stay on 2017 ( which BTW landlocks them to an old ERP because to upgrade to 2018+ they'll have to go with payroll 2.x)

    Customers have very selective memories. No matter how many caveats you throw at them they will hear "it's ok to stay" unless you are very explicit.

    Proceed at your own risk. Reassuring a customer in any way that they can stay on legacy payroll has a very high likelihood of you doing a ( maybe free ) emergency payroll upgrade in December or January.

    There is only one path forward for active users of payroll - be on the latest version.

    ------------------------------
    Wayne Schulz - Schulz Consulting - 860-516-8990
    ------------------------------



  • 7.  RE: Sage 100 2017 w/ Payroll not Compliant?

    Posted 11-06-2019 11:25
    You have to remember that only new employees or employees with changes need to fill out the new W-4. Everyone else is grandfathered in under the current W-4. If those employees don't have to change anything, I would imagine that companies still on 2017 should work fine.

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



  • 8.  RE: Sage 100 2017 w/ Payroll not Compliant?

    Posted 11-06-2019 14:34
    I compiled as many reasons into one post ( along with links to the reasons for upgrading ). Sage has published a "What's new in the 2020 W-4" which might be helpful to provide to a customer who is hesitating about upgrading. There are a number of program changes required by the new W-4 that will only be made in Payroll 2.20 or higher.

    https://s-consult.com/2019/11/06/what-happens-if-i-dont-upgrade-my-sage-100-payroll/


    ------------------------------
    Wayne Schulz - Schulz Consulting - 860-516-8990
    ------------------------------



  • 9.  RE: Sage 100 2017 w/ Payroll not Compliant?

    Posted 11-06-2019 14:40

    Wayne:

     

    Can you explain what you mean by this please?

     

    "Users on legacy Sage 100 Payroll ( version 2017 or lower ) will be unable to upgrade to any higher version of Sage since the current releases ( 2018+ ) all require the latest Payroll update"

     

    Thanks,

    Pam

     

    Sent from Mail for Windows 10

     



    ------Original Message------

    I compiled as many reasons into one post ( along with links to the reasons for upgrading ). Sage has published a "What's new in the 2020 W-4" which might be helpful to provide to a customer who is hesitating about upgrading. There are a number of program changes required by the new W-4 that will only be made in Payroll 2.20 or higher.

    https://s-consult.com/2019/11/06/what-happens-if-i-dont-upgrade-my-sage-100-payroll/


    ------------------------------
    Wayne Schulz - Schulz Consulting - 860-516-8990
    ------------------------------


  • 10.  RE: Sage 100 2017 w/ Payroll not Compliant?

    Posted 11-06-2019 14:50
    Sage 100 2018+ is only compatible with Payroll 2.x. This means anyone on legacy payroll ( version 2017 or earlier ) would be required to upgrade payroll versions in addition to any Sage 100 version upgrade to 2018+.

    ------------------------------
    Wayne Schulz - Schulz Consulting - 860-516-8990
    ------------------------------

    Original Message


  • 11.  RE: Sage 100 2017 w/ Payroll not Compliant?

    Posted 11-11-2019 09:47
    Edited by Kathy Purkiss 11-11-2019 09:47
    I spoke with Sage on Friday and was told that users on Sage 100 2017 will be fine to get through this year end however for next year they will have to upgrade to be in compliant with the 2020 form and tax reporting requirements.

    ------------------------------
    Kathy Purkiss
    Birch Tree Consulting Services
    ------------------------------



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