Hi Andrea,

We are currently working on the update and will post an announcement when it is ready. 

See this post for more info:

https://www.sagecity.com/us/sage_construction_and_real_estate/f/sage-cre-announcements-news-and-tips/179368/sage-300-cre-2022-federal-withholding-tax-update---pending

Is this update expected by early tomorrow, or should we go ahead and run the first payroll of 2022 without it?

I am wondering the same thing, as I can only push off our first payroll until early tomorrow as well.  Please advise.  Thanks!

I wish we had an expectation date. I have a call into the IRS to confirm this should be the stance to take if they are not in there. Per IRS (called this morning) and they are saying that we have to manually calculate using the 2022 rates, that it is the employer's responsibility that if the tables are published by IRS they must use them or if audited would be responsible for the tax amounts under withheld. 

Well this is super frustrating as I was told by someone in the forum that it was ok to run payroll as long as I changed my state withholding rate which I did. I have to run payroll on Mondays and that is what I did. I would have no idea how to manually calculate the rates and I can't believe Sage would encourage us to do that.

In comparing the existing table in the system after the tax update with the IRS 2022 table, we will be OVER withholding on the FWH taxes. And, one week should not make that big a difference. Especially the first week of the year. We have until Wed morning to run PR, so we are waiting until then. But, if the tax update doesn't come, we are running PR based on the existing tables. I think we are all good. It is frustrating though!

From my understanding Sage calculates the taxes based on YTD, so it would correct itself next week if we ran Payroll this week before updating the taxes. Can anyone confirm this?

Can you tell me how to get to those tables?  I can't seem to find them... thank you!

The tax tables are in the Pub 15T. Also, if you search for That Payroll Guy (Gerald Hall) on Linked In. He has a tax calculator already released that will break it down and also calculate for you.

The tax tables for anyone that has not completed a W4 after 01/01/2020 will under withhold from my comparison on spot checking.  However, there are a few that would over withhold if they completed a W-4 after 2020.

I do not believe this is accurate. There are only 2 types of withholding methods, Flat Rate and Percentage Rate and per the IRS Pub 15T, payroll service providers use the percentage rate. The tax is based on an annualized amount, but it does not "make up" at any point.

Kaysong said 'in comparing the existing table in the System'.. I thought that meant she was viewing an actual table in Sage? That is what I was trying to find. 

Sorry, I misunderstood.  To into the Setup Tax Rates, find the tax FWH and then tab. At the bottom there will be a table button, you look at that and compare the tables for each filing status. 

Hello Everyone-

Thank you all for your comments and questions. We don’t have a firm date of the tax release and our Development team is working hard at getting this out to you as soon as possible. We anticipate the release being available no later than mid-January.

The delay on the Federal Taxes is due to the IRS being very late this year finalizing the tax tables. The coding for these changes along with testing and validating takes time, and please rest assured that we are working as fast as we can to ensure the tax release is accurate.

The changes are minor and should not have a huge impact on paychecks; if you process your payroll with the 2021 FWH tables, it will have a minor effect on the employees' tax returns at the end of the year.

The IRS has easy-to-use tools to calculate the tax amount if you so choose, and you can override them under Tasks > Enter Checks. See https://www.irs.gov/businesses/small-businesses-self-employed/income-tax-withholding-assistant-for-employers

As soon as the tax release is ready, we will get the information posted here. Thank you for your patience and understanding.

Select each type of filing status to see the table for that filing status.

Jesse, While we understand that your team is working on it, but the IRS posted the tables on 12/16. We pay for the software and ongoing support. This should have been done if working around the clock. Kronos, ADP, etc. all have theirs updated.

Is there an updated status?  Will this be complete by next week?

I just ran them with last years table. I wasn't about to manually calculate. Our state table withheld less so I assume FWH will be pretty close. Our state pretty much runs parallel to what FWH does.  So I just figured we probably withheld a slight bit more than is required. Not sure what's so complicated for software engineers to not be able to timely update the tables?

Hello Everyone,

The new tax update is now available for download.

Thank you for your patience!

The release notes might not show as available. Included in this release: 

Federal tax changes included in this update:

• Federal Withholding (FWH)

State tax changes included in this update:

• Kentucky (KYSWH)
• Minnesota (MNSWH)
• North Carolina (NCSWH)
• North Dakota (NDSWH)
• Rhode Island (RISWH)
• Vermont (VTSWH)