ACCPAC VisionPoint 2006 Payroll Update Plan January 1st, 2006

Transcription

1 ACCPAC VisionPoint 2006 Payroll Update Plan January 1 st, 2006

2 January 2006 Edition Sage Accpac International Telephone: (925) Koll Center Parkway, 3rd Floor Fax: (925) Pleasanton, CA Website: Notices No part of this documentation may be copied, photocopied, reproduced, translated, microfilmed, or otherwise duplicated on any medium without written consent of Sage Accpac International, Inc. Use of the software programs described herein and this documentation is subject to the Sage Accpac International, Inc. License Agreement enclosed in the software package. Trademarks 2005 Sage Accpac International, Inc. All rights reserved. Sage Software, Sage Software logos, and all Sage Accpac product and service names are registered trademarks or trademarks of Sage Accpac International, Inc., or its affiliated entities. All other trademarks are the property of their respective owners. 2 ACCPAC VisionPoint

3 Table of Contents Payroll Update Program Overview 4 Message to Payroll Update Plan Subscribers 5 What s New in the Payroll Update Program 6 Payroll Checklist - Before You Begin 7 Installing the Payroll Update Plan Subscription 8 About the Payroll Update Plan Subscription 9 Federal Tax Changes... 9 January 1st, Federal Income Tax Withholding Tables... 9 Social Security Changes State Tax Subscription Changes January 1st, Additional State Changes State Changes Not Included in PUP Instructions for Specific States 12 Arizona Delaware Hawaii Illinois and Indiana Maryland Michigan Missouri New York Washington Virginia West Virginia Payroll Update Plan

4 Payroll Update Program Overview Payroll Update Program Overview This guide contains instructions for using and installing the VisionPoint January 1 st, 2006 Payroll Update Plan (PUP). We suggest that you read this guide in its entirety before proceeding. VisionPoint uses "builds" to provide updates to programs between major product releases. To determine which build you are using, start VisionPoint, open System Manager, and click System Setup Information. Note the build number found under "Version. The January 1 st, 2006 Payroll Update Plan (PUP) supports ACCPAC VisionPoint 10.0, Build 112. This Payroll Update Plan includes any Federal Magnetic Media changes that apply. Payroll program updates, released during the year, should be installed as soon as possible after receiving the files. 4 ACCPAC VisionPoint

5 Message to Payroll Update Plan Subscribers Message to Payroll Update Plan Subscribers Dear ACCPAC Payroll Update Plan (PUP) Subscriber: Your ACCPAC VisionPoint January 1 st, 2006 Payroll Update Plan (PUP) disk contains the most recent Payroll program updates. You must install these updates to correctly calculate and report your Federal and States taxes. If you have any questions, please contact your Solution Provider or the Technical Support Department at Sincerely, ACCPAC Technical Support 2006 Payroll Update Plan 5

6 What s New in the Payroll Update Program What s New in the Payroll Update Program The Payroll Update Plan (PUP) files are available on diskette, or for download from the ACCPAC Web site to a floppy disk or CD. The download feature allows for timely access to all of the Payroll updates. This It Payroll Update Plan includes any Federal Magnetic Media changes that apply. is important to verify that you are using the most current version of the tax updates. If you have any questions about downloading PUP files, please contact ACCPAC Client Care at (Monday-Friday from 6 a.m to 5 p.m PST). You can also them at clientcare@accpac.com, or send a fax to The following sections contain updated information: Federal Tax Changes on page 9 State Tax Subscription Changes on page 10 Instructions for Specific States on page 12 Updated information is highlighted in yellow. 6 ACCPAC VisionPoint

7 Payroll Checklist - Before You Begin Payroll Checklist - Before You Begin Use the checklist below as a guide to updating your State and Federal taxes: Read this guide. Anytime an update is received, backup all of your data files after clearing all multi-user flags from your VisionPoint installation. Then proceed with installing the update. Before installing the Payroll Update, please check the Readme.txt file corresponding to your VisionPoint version (for example, VPTX10T.txt) for any late-breaking program changes or corrections that may be required. Install Payroll Update Plan files in the following order: 1. The January 1 st, 2006 Payroll Update Plan tax update files. 2. If you are generating Magnetic Media, you must install your latest Magnetic Media update after installing the tax update files. ACCPAC's Install the January 1 st, 2006 update as soon as possible after receiving or downloading the files. For more information, see Installing the Payroll Update Plan Subscription on page 8. state tax formulas calculate SWT (State Withholding Tax) only. You should contact your accountant or state tax franchise board for SDI, SUTA and local tax rates. Taxes and tax rules change often, so it is to your benefit to consult your accountant Payroll Update Plan 7

8 Installing the Payroll Update Plan Subscription Installing the Payroll Update Plan Subscription When you download the January 1 st, 2006 Payroll Update Plan (PUP) files from the ACCPAC Website, you must first copy the files to a floppy disk or a CD, and run the installation program from the diskette. To install the tax update: 1. Contact your Solution Provider if you have any prior customizations to your Payroll application. Installing this tax update may overwrite your customizations. 2. Back-up your entire VisionPoint installation program and data files (not just the payroll data files) before proceeding. 3. Make sure all users have exited VisionPoint. Start VisionPoint and Clear All Multi-user Flags in System Manager (even on a single-user installation). Open Payroll and select System Tax Update from Diskette. Click Enter. 4. Verify that you have the VisionPoint Tax Update 01/01/2006 diskette or CD inserted into your floppy drive. 5. Select drive A:\ and click Enter to copy the files from the tax subscription disk. The Tax Update files will automatically be copied to the appropriate directory. 6. Once the files are copied, you see a prompt asking, Do you want to proceed with the Federal update? Click Yes. Enter all of your live companies, and include Company 99. If you are unsure of any of these answers or have questions about the update process, please contact your Solution Provider or ACCPAC Source Solutions Technical Support at (800) for further assistance. 8 ACCPAC VisionPoint

9 About the Payroll Update Plan Subscription About the Payroll Update Plan Subscription This section contains information on the following topics: Federal Tax Changes, following State Tax Subscription Changes on page 10 Federal Tax Changes January 1 st, 2006 The following Federal tax changes are effective January 1 st, 2006: Federal Income Tax Withholding Tables The following Federal Income Tax Withholding tables have been updated, effective January 1 st, 2006: Marital Status: Married (Annualized Table) Lower Income Limit Tax on Base Amount Tax Rate Over Limit $8, $ $22, $1, $68, $8, $126, $22, $195, $42, $343, $91, Payroll Update Plan 9

10 About the Payroll Update Plan Subscription Marital Status: Single/Head of Household (Annualized Table) Lower Income Limit Tax on Base Amount Tax Rate Over Limit $ $ $10, $ $32, $4, $73, $14, $156, $37, $338, $97, Social Security Changes The Social Security taxable maximum wage base has been increased from $90,000 to $94,200 for the year VisionPoint Payroll does not include Earned Income Credits. State Tax Subscription Changes January 1 st, 2006 The State Withholding Tax Tables have been revised for the following states and cities, effective January 1 st, 2006: California Colorado Kentucky Maine Maryland Michigan Minnesota New Mexico 10 ACCPAC VisionPoint

11 About the Payroll Update Plan Subscription New York North Dakota Ohio Additional State Changes For the state of Kentucky, the standard deduction is increasing from 1,910 to 1,970, effective January 1 st, State Changes Not Included in PUP The state of California has made changes to the disability insurance wage, effective January 1 st, The state of Rhode Island has increased the taxable wage base from 49,000 to 50,600, effective January 1 st, All state withholding taxes are supported by ACCPAC Payroll Tax Subscriptions. Other state taxes may or may not be supported on a case-by-case basis. If you need a special state or local tax formula set up for Payroll, please contact your Solution Provider Payroll Update Plan 11

12 Instructions for Specific States Instructions for Specific States Arizona Starting July 1 st, 2003, the eighth position of the State Tax Status field is used to input the decimal percentage value. For example, if the rate is 18.2%, you would enter 182 ( 1 in the sixth position, 8 in the seventh position, and 2 in the eighth position). You must change the tax rate for each employee. The following table lists the new rates, effective July 1 st, 2003: Old Tax Rate New Tax Rate 6 th Position 7 th Position 8 th Position 0% $5.00 per month % 10.0% (or leave blank) 18.0% 18.2% % 21.3% % 23.3% % 29.4% % 34.4% Delaware The State of Delaware allows a tax credit per federal exemption. You can change the number of federal exemptions on the Employees Master Maintenance dialog box. Payroll uses the number of federal exemptions to calculate the tax credit for Delaware employees. Hawaii Payroll supports Hawaii State Disability Insurance as part of Payroll's state tax program for Hawaii. You must add a record to the tax file for this tax to calculate correctly. The record you add must use the field values listed below. Select Files Taxes. 12 ACCPAC VisionPoint

13 Instructions for Specific States Tax Code: SDIHI Description: Hawaii SDI Tax Rate (In Decimal Form): The current percentage rate Max Taxable Gross (0.00 if none): The current maximum weekly taxable wage Illinois and Indiana You can now enter employee dependent exemptions in addition to regular exemptions. In the sixth and seventh positions of the State Tax Status field, enter the number of dependent exemptions for the employee. If the number is less than 10, you can enter it in either the sixth or the seventh position. If the number is 10 or greater, use both positions. Maryland The State of Maryland includes a local tax in addition as state withholding tax with the State Withholding Tax (W-2). A code in the eighth position of the State Tax Status field indicates the local tax rate, as follows: Tax Rates A 1.25% B 2.80% C 2.25% E 3.0% F 3.05% G 2.62% H 2.65% J 2.85% K 2.93% M 3.10% N 3.20% P 2.56% Q 2.63% S 2.83% T 2.90% V 2.96% W 3.06% X 3.15% NR in the seventh and eighth positions indicates an employee who is not a Maryland resident Payroll Update Plan 13

14 Instructions for Specific States DEL in the sixth, seventh, and eighth positions indicates a Maryland resident working in Delaware. Michigan Enter the number of personal exemptions in the State Exempt field for each employee subject to Michigan state taxes.enter the number of dependents in the fifth and sixth positions of the State Tax Status field. If your number of dependents is less than ten, you can enter the number in either the fifth or sixth position as long as the other position contains a blank. Numbers greater than ten require both positions. To enter a number less than ten, use a leading zero (for example, 09). Enter the number of special exemptions (if any) in the seventh and eighth positions of the State Tax Status field. Use the same guidelines you used to enter the number of dependents. Missouri Missouri Combined Filing: Enter a C in the first position of the State Tax Status field if the employee is filing a combined income tax return. If the employee is married and both partners work, enter B into the fourth position of the State Tax Status field. The following table shows what you should enter into position five of the State Tax Status field: Amt. of Exemptions Contents Circumstances $ Single or Married $ Head of the Household $0 N No Personal Exemption Use the sixth and seventh positions to indicate number of dependents. 14 ACCPAC VisionPoint

15 Instructions for Specific States Exemptions for dependents are in addition to the personal exemptions taken. If you enter this number as a single digit, a leading or trailing blank is allowed. Head of Household: Enter 1 for fifth allowance and each additional allowance thereafter. Do not figure a deduction for the second, third or fourth allowance if the filing status is Head of Household. New York The following table shows what you should enter into positions 6 and 7 of the employee State Tax Status field in order to correctly withhold New York state withholding tax (NYSWT). Entering a N in the 6 or 7 position of the State Tax Status field is no longer required for a Non-New York City resident working in New York City. Entering an E in the 6 position exempts the employee from city tax. If Contents Position Meaning Washington blank 6 Resides neither in Yonkers nor in New York City E 6 Exempt from city tax Y either Yonkers resident R either New York City resident O either Non-Yonkers resident working in Yonkers you use the 7 position, the 6 position must not contain a blank. To calculate ERSDI, select Files Taxes. To create a new tax record, enter the new tax code ERSDIWA and click Add. Enter a brief description for the new rate. Enter the Washington employer s rate for the employee class code in the Tax 2006 Payroll Update Plan 15

16 Instructions for Specific States Rate field (for example, enter if the employer s rate for employee class code 3406 is ). VisionPoint Virginia supports one class code at a time for the employer s rate. If you are posting multiple class codes, you must update the employer s rate each time you post payroll for each different class code. Effective January 1 st, 2005, the state of Virginia has changed the withholding formula used to determine employee income tax to account for increases in the personal exemption and standard deduction amounts. Enter the number of personal and dependent exemptions in the State Exempt field for each employee subject to Virginia state taxes. Enter the number of Additional Personal Exemptions for persons age 65 and over and for the blind for that employee (if any) in the seventh and eighth position of the State Tax Status field. Use the same guidelines used to enter the number of dependents. West Virginia The state of West Virginia has a new two-earner percentage method of withholding. Using the optional two earner percentage method of withholding allows for an accurate amount of state income tax to be withheld from an employee with a working spouse or with more than one job. To use the new optional two earner percentage method of withholding: 1. Select Files Employees. Select an employee with the appropriate state entered in the State field. 2. Enter an E in the first position of the Tax Status field. 16 ACCPAC VisionPoint