2009 Stimulus Package Payroll Tax Changes in BusinessWorks Page 1 of 6

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1 IMPORTANT NOTICE TO ALL BUSINESSWORKS USERS: The Internal Revenue Service has issued new Federal tax withholding tables for These new tables have been developed due to changes to the tax law made in the American Recovery and Reinvestment Act of 2009 (Federal Stimulus Package). The IRS asks that employers begin using these tables in lieu of the applicable previously published tables as soon as possible, but no later than April 1, To accommodate these tax law changes, you must make some adjustments to your BusinessWorks payroll tax tables BEFORE processing your FIRST payroll for APRIL, All of the actions you need to perform are detailed on the following pages. Please contact FLI Customer Support if you have any questions regarding these changes. READ THIS ENTIRE DOCUMENT BEFORE MAKING ANY CHANGES IMPORTANT NOTICES: These changes do not affect State Withholding Tax (SWT) or State Unemployment Insurance (SUI). These changes do not affect Federal Unemployment (FUTA) limits or rates. Do perform the following steps before processing your first payroll for April, Stimulus Package Payroll Tax Changes in BusinessWorks Page 1 of 6

2 2009 Federal Wage Withholding (based on IRS Publication 15-T (Rev March 2009)) Overview Effective April 1, 2009, the Internal Revenue Service (IRS) is changing the wage withholding tables and other allowances, limits, and rates used to calculate employee withholding amounts. If you have not subscribed to Sage ClientCare, you must manually update Federal tax tables in BusinessWorks. This document provides step-by-step instructions to be performed prior to processing the first payroll for April, Multiple Company Considerations: Changes made to your federal tax tables will be reflected in all companies you will perform the following steps only once, regardless of the number of companies you use to process payroll. Adjust Federal Wage Limitations (NOTE: These changes should have been made prior to 1/1/2009) 1) In the Payroll Module, go to Taxes > Maintain Tax Tables BW v12 BW Gold 2009 Stimulus Package Payroll Tax Changes in BusinessWorks Page 2 of 6

3 2) In the Maintain Tax Tables Window, use the binocular button at the bottom to find the US (Federal) tax information. The top will read Tax Information for Federal (US) after your selection. Click the Allowances, Limits and Rates button. 3) Change the FICA Limit, OASDI portion to Change the Withholding Allowance to All other values may remain the same (or as shown in the image below). 4) After changing the Limits listed in Step 4, click OK at the bottom of the screen. This will return you to the Maintain Tax Tables screen. 5) Click Save in the toolbar at the bottom of the Maintain Tax Tables screen (the button with the green diskette image). 6) Click the Table 1 (Single) button 2009 Stimulus Package Payroll Tax Changes in BusinessWorks Page 3 of 6

4 Adjust Federal Wage Limitations (continued) NOTE: These changes take effect April 1, ) In the Single Tax Table, select the first line in the table, and then click the Edit button on the right side of the window. Enter the amounts shown in the image below and click Accept. Repeat this step until all lines contain the values listed in the image below (see disclaimer near the end of this document). Click OK when finished Stimulus Package Payroll Tax Changes in BusinessWorks Page 4 of 6

5 Adjust Federal Wage Limitations (continued) NOTE: These changes take effect April 1, ) Click the Table 2 (Married) button 9) In the Married Tax Table, select the first line in the table, and then click the Edit button on the right side of the window. Enter the amounts shown in the image below and click Accept. Repeat this step until all lines contain the values listed in the image below (see disclaimer near the end of this document). Click OK when finished. 10) Click Save in the toolbar at the bottom of the Maintain Tax Tables screen (the button with the green diskette image), and close the Maintain Tax Tables screen Stimulus Package Payroll Tax Changes in BusinessWorks Page 5 of 6

6 Payroll Processing Disclaimers After completing the steps listed above, continue processing your 2009 payroll as you normally would. BusinessWorks will calculate withholdings based on the tax information you entered. FLI provides this information as a convenience and service to assist our customers in making payroll tax changes to their BusinessWorks software to remain compliant with Federal and State statutes. All rates and values listed in this document were obtained from the Internal Revenue Services (IRS) Table 7 Annual Payroll Period, and are believed to be accurate and correct. FLI assumes NO responsibility for inaccurate, incorrect, or omitted information regarding any amounts or rates listed in this document. Further, FLI assumes NO responsibility for any damages resulting from any actions taken, or not taken, based on the information provided in this document. Before processing your first payroll in April, 2009, please verify the withholding amounts and rates are correct. Getting Assistance Please contact your accountant, IRS, or FLI Customer Support if you have any questions regarding the information provided in this document 2009 Stimulus Package Payroll Tax Changes in BusinessWorks Page 6 of 6