Sage 50 US: Payroll tax year 2020 W-4s

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 Form new 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.

  • Will users be able to run a payroll on January 1, 2020 with the Sage 50 2020 release, without running the Sage 50 2020.1 update? When will this Update be required?

  • Hello mbartnik,

    We are happy to help! 

    Users will be able to run payroll on January 1, 2020 with the Sage 50 2020 release without running the 2020.1 update, as long as they have installed the January Payroll Solutions update and there were no new employees hired after January 1, 2020.  If the user has any employees hired after January 1, 2020, they will need to use the new W-4 setup to ensure correct withholdings only available in the 2020.1 Update.

    For more information on the W4 changes, please click HERE.

    We hope this information is helpful.  Meanwhile, thanks for choosing Sage!  Have a great rest of the day!