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Sage 50 US: Announcing the 1st January 2021 Tax Update for Release 2020 and 2021

What's New

Federal Tax Changes

  1. Federal Income Tax Withholding
    The 2021 allowance amount and withholding tax tables changed. Please note, the new filing statuses introduced as a result of the revised W-4 Form for 2020 and the prior statuses exist for those employees using 2019 and prior revision of the form. For more information, please see:
    Payroll tax year 2020 W-4s
  2. Social Security Wage Base
    The 2021 social security wage base increased to $142,800.

State and Local Tax Changes

  1. Arkansas State Income Tax
    The 2021 withholding tables changed.
  2. California State Income Tax
    The 2021 withholding tables changed.
  3. Colorado State Income Tax
    The 2021 withholding tables changed.
  4. Connecticut Paid Family Leave
    New calculation for 2021.
  5. Hawaii Temporary Disability Insurance
    The 2021 wage limit decreased.
  6. Iowa State Income Tax
    The 2021 standard deduction amounts and withholding tables changed.
  7. Kentucky State Income Tax
    The 2021 withholding tables changed.
  8. Maine State Income Tax
    The 2021 withholding tables changed.
  9. Massachusetts Paid Family Leave
    The limit increase to match the max amount for Social Security in 2021
  10. Missouri State Income Tax
    The 2021 withholding tables changed.
  11. New Jersey State Disability Insurance, Unemployment Insurance and Family Leave Insurance, State Income Tax
    The 2021 rates and taxable wage base changed.
  12. New York Paid Family Leave
    The weekly wage base limit and rate changed for 2021.
  13. New York State Income Tax
    The 2021 withholding tables changed.
  14. New York Yonkers Local Income Tax
    The 2021 withholding tables changed.
  15. South Carolina State Income Tax
    The 2021 withholding tables changed.
  16. Washington Paid Family Leave
    The wage base limit changed for 2021.

For additional information, please review the release notes that open after installing your tax update.

Making Sure Your Tax Update is Applied

This update will be sent to you automatically through your product. The version for this tax update is 20210101 for release 2020, 2021.0, 2021.1, and 20210102 for release 2021.1.1. Follow these steps to make sure that your tax update was applied:

  1. Open your Sage 50 company
  2. Select Help > About Sage 50 Accounting
  3. Confirm that the installed Tax Update version number matches the version number listed above
  4. If your Installed Tax Update version number does not match:
    1. Select ServicesCheck for Updates > Check Now
    2. If multiple updates appear, select the update(s) you want to install, then select Download
    3. After the download is finished, exit Sage 50 and the update will begin

Need help closing the year?

Visit Sage.com/Resources for options, including links to Sage Year-end Center, Sage Knowledgebase, Sage City, and Sage University, as well as Sage Q&A Live, Chat, and Online Case submission.

Questions? To start (or join) a discussion about this topic, please visit the Sage 50 US General Discussion forum.