Massachusetts Paid Family Medical Leave

To Massachusetts Customers,

We have discovered that BusinessWorks' implementation of the Mass. PFML tax caused the Employer portion of the tax to be added to employee's gross wages.  We have just finished issuing corrected W-2c forms.  The 941 is also incorrect.  To fix this the Employers tax deduction taxable boxes must be Unchecked.  To uncheck them we had to go into setup mode.  Sage support said they are looking into it but did not feel the need to notify any customers as they put a disclaimer that "Taxable Boxes: Generally all checked (Please check with a tax advisor for the plan's specific tax requirements)".

David

  • Wow!  I'm in Colorado and our State began the FAMLI leave in January 2023.  This just happened to us at EOY ~ Incorrect W-2 forms and 941. Nice of Sage to cover their assets and not clarify what we were protecting ourselves from. The State is clueless with direction as well, seems like they are all backing out and letting the chips fall where they may.  

    So far, this is the most helpful response I've seen to our dilemma.  Thanks David.

    Deb 

  • in reply to Deb Ward

    I just got off of a chat with Kimberly from Sage.  

    Kimberly from Sage

    OK the reason why it was added back into the gross wages is because the deduction was set with all taxable boxes selected.  When a deduction is company paid and set to percent of gross, and all the tax boxes are selected it adds the amount back to the wages.  

  • in reply to Deb Ward

    So David's initial question 4 years ago is spot on.  HEADS-UP!  We didn't realize our error until the end of the year. 

  • in reply to Deb Ward

    Yes – your deduction settings do make a difference, and may effect how W-2 are calculated 

    For full explanation on W-2 calculations, please refer to articleHow the W-2 figures are calculated

    Sincerely,

    Coleen