For new year payroll  is it automatic will update or i have to do setup

The updates have usually been automatic and I expect this continues. If the update is installed now you can still run a 2020 payroll using the correct tables. When your pay date is changed to a 2021 date then the new tables will be utilized.

Hi Parminder Singh, thanks for reaching out. In addition to what Alwyn advised:

Before you start processing payroll

• Review the new federal TD1 form and the TD1 form for your province or territory (or the TP 1015.3-    V form for Québec) to become familiar with any changes.   
• Provide your employees with the 2021 federal/provincial/territorial TD1 forms if they need to make changes to their personal claims.   
• Adjust your employee records in Sage 50 Accounting to reflect the new tax credit amounts.
  • Use KB 108352 to acquire the basic personal tax claim amounts for January 2021.

For more details about the 2021.1 release, please review this PDF document (see here for FR) for all details.