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 Overview

The Payroll module introduced for Sage 100 version 2018 features a tax calculation engine that accounts for local and "other" taxes in a more detailed way than earlier versions of the module.

In your earlier version of Payroll, you may have had some local and other taxes that were combined with another tax. However, the current version has specific tax groups for those taxes. To ensure that you have the correct year-to-date totals for the local and other taxes, you'll need to manually adjust your employees' tax records.

Examples

The following are examples of taxes that may require adjustments.

• A company with employees in California may have combined the employment training tax with the unemployment tax.
• A company with employees in Kentucky may have combined multiple local taxes, such as the Louisville school tax and Jeffersontown city withholding tax, into the Other tax category.

 

Use the Missing Other/Local Taxes Utility to create the missing employee tax records for these tax groups after converting your Payroll data. The utility detects missing tax records based on the tax profile assigned to employees in Employee Maintenance. You can view a list of missing records and choose which ones to create.

The utility creates zero-dollar records that you must then adjust in the Employee Tax Summary window.

• For the employee tax records converted from your earlier version of the Payroll module, deduct the local and other wage and tax amounts that are now maintained in separate tax groups.
• For the employee tax records created using the utility, add the correct local and other wage and tax amounts.

The utility creates records only for the current processing year entered in Payroll Options.

 

 Before You Begin

Make sure the correct tax profiles are assigned to employees in Employee Maintenance.

 

To correct missing local and other taxes

Important Back up your data before using this utility. For more information, see System FAQs.

1. Select Payroll Utilities menu > Payroll Status Check.

2. In the Test field, select Missing Other/Local Taxes Utility, and then click Run.

   A list of employee numbers appears. If the utility detects missing records for an employee, the Status field displays "Warning."

3. Click in a status field that says "Warning."

   The Missing Tax Records window displays a list of tax groups and associated tax codes for which the employee should have records but does not. Separate records are created by check date.

4. Create one or more of the missing records.

   • To create one record, select the applicable row, and then click the Create Missing Record button. The Employee Tax Summary window opens with the employee and applicable tax group selected.

   • To create a record for each check date, click Create All. A message window let's you know how many records were created and asks if you want to edit the records. If you click Yes, the Employee Tax Summary window opens with the employee and first applicable tax group selected.

5. Manually edit the employee's tax records.

   • Deduct the applicable tax amounts from the previously existing records that were converted from your earlier version of the Payroll module.
   • Add the applicable tax amounts to the records created using the utility.

   For more information, see Fix Employee Tax Information.

The employee's year-to-date tax amounts are now reflected in the correct tax group ensuring that any caps or other limitations are calculated correctly.

Be sure to complete this procedure for all of your Sage 100 companies in which payroll is processed.