Has anyone had any issues with the latest payroll tax update?

SOLVED

Our client upgraded to Sage 100 2019 and Payroll 2.19.4 on December 3. Ran their first payroll and, while some federal tax withholding amounts were different from previous payroll runs, none were outlandishly so. After installing the latest tax update on December 16, client ran a payroll for the last payroll period of the year (12/31/2019 check and period-end date). Federal Withholding amounts on all employees are drastically different from the prior payroll run. Some employees' withholding increased substantially, while others' decreased. In one case, an employee's withholding dropped over $500, even though he voluntarily has over $700 withheld each pay period.

Has anyone else tried to run a payroll after installing the latest tax update? Is the above an indication that there is a problem with the update or with the tax calculation engine? Or, possibly, that the tax update should have been held back until payroll 2.20 is available?

Is there a way to roll back the tax update once it has been installed? The above situation was on a payroll of only 7 employees, so we were able to use Manual Tax entry to correct the withholding. Their next payroll run will cover over 100 employees, so we need it to be right.

  • +1
    verified answer

    There is a defect affecting checks dated 12/31/2019 or 1/1/2020,  The values in the Dependent Amount, Other income and Deductions are not being used correctly and causes the Federal W/h calculation to be incorrect.  A hotfix is scheduled to be released in the couple days- PR6015t describe on KB 102165.  Search for PR6015t as the KB # will be different. 

    The new Federal Filing statuses should not be used until the Payroll 2020 update is released as they are not effective until 1/1/2020 anyway AND only needed for NEW employees or existing employees wanting to change their W4.  MA and AR had changes as well that will not work until the 2020 Payroll Update as stated on the announcement on Sage City.

  • 0 in reply to Linda KR

    Thanks Linda. I also heard from Sage Support this morning that this is the case.

  • 0
    SUGGESTED

    Sage has published a program fix to correct this issue.  You can download Sage 100 Payroll 2.19.4 Program Fix PR6015T from Knowledge Article 102372.