Sage 300: Payroll tax year 2020 W4s

What you need to know

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

  • Any new employee starting January 1, 2020 or later must use the new Form W-4 Employee's Withholding Certificate
  • Effective January 1, 2020 any employee that needs to make changes to their withholdings must use the new Form W-4 Employee's Withholding Certificate

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

Actions required

Please be sure to check back on this forum for for information regarding which version(s) of the software will support the new Form W-4. In order to implement the use of the new Form W-4 many products will require you install the latest version.

For guidance on using the new Form W-4, please visit this article from the Society for Human Resources Management or check with your CPA.

Need help?

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

Parents
  • Is there updated information on the 2020 W-4's or any webinars to show employers what will need to be done?

  • in reply to khaider

    Hi - For Sage 300, we are updating the Payroll module to comply completely with the 2020 Form W-4 changes. We will be releasing that update (Q4 2019 Payroll 7.3H) mid-December. The release will be announced on this forum, and those that are subscribed to the forum will get an email when it is posted. The release announcement will include documentation explaining the changes made in Sage 300 Payroll. Let me know if you have any additional questions! -Rachel

  • in reply to Rachel Jansen

    Hi Rachel when the updates are done for 2020 will the existing employees tax information be correct or do they need to be adjusted?

  • in reply to khaider

    Hi -

    The IRS is advising that W-4 information for current employees only needs to be adjusted in their Payroll employee records if that employee submits a new Form W-4 to you January 1, 2020 or later. That being said, existing employees are not required to submit a new Form W-4 to you. In that case, you would continue to compute their withholding based on the information from the employee's most recently furnished Form W-4.

    Any new employees starting January 1, 2020 or later should use the new Form W-4 and you will enter that information to the Payroll Employees Tax Info window like you normally would - and now you will be using the new fields added to Sage 300 Payroll.

    I have found the IRS FAQs on the 2020 Form W-4 page very helpful for these common questions - they have a section for Employers that you may want to review!

    We also just released the Q4 2019 US Payroll update for Sage 300 - you can view that here. The release notes that are linked in that post have a section on the new W-4 that details what fields and options were added to comply with the new options on the Form W-4.

    -Rachel

  • in reply to Rachel Jansen

    Thank you! We knew they did not need to complete a new form but I was not sure how the payroll program would handle it. Thank you!

  • in reply to khaider

    Yes, no problem - great question!

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