Sage 50 Payroll Tax Table Update Release 2nd January 2025

Sage 50 is popular with business owners and accounting professionals due to its wide range of features and helpful tools. This accounting platform has consistently worked to meet the needs of its users. Sage 50 announced that a new payroll tax update for Sage 50 U.S. Edition, versions 2024.0 and 2024.0.1, is available starting January 9, 2025. This update includes changes to Federal and State taxes. The new Sage 50 2024 Edition includes many improved features.

Recent updates to the Sage 50 Payroll tax tables have made payroll processing more complex. Employers have found it harder to pay employees accurately and on time. However, the new payroll module in Sage 50 includes significant tax updates to simplify the process.

To benefit from these updates, subscribe to a payroll plan and install the Sage 50 Payroll tax update before starting payroll year-end tasks. It is important to install the update at the right time. This release includes updates to payroll tax tables, formulas, employee W-2 forms, business W-3 forms, vendor 1099 forms, and other important changes for the current and next payroll tax years.

If you haven’t installed these updates yet, you are missing out. Don’t worry. Simply read this blog post, and you will learn how to install the updates and use the enhanced payroll features in Sage 50. Follow the steps outlined here.

What is the Payroll tax table?

A payroll tax table is a piece of software that tells your Sage 50 Accounting system’s payroll function the proper sums to withhold and report. Sage 50 Accounting and its payroll tax tables make managing payroll easier and faster than performing the calculations by hand. It also costs a lot less than hiring a third-party payroll service.

Keep your payroll tax tables up to date because federal, provincial, and local payroll tax rates change frequently to ensure accurate payroll withholding and reporting.

What’s New in Sage 50 2024 Payroll Update Release January 2025?

Federal Income Tax Withholding 

The January 1, 2025 payroll tax update includes draft changes for the FIT withholding. Finalized changes will be included in the January 2, 2025 payroll tax update, expected for release in mid-January. Note that the new filing statuses, introduced by the revised W-4 Form for 2020, will be available for employees using the 2020 or later version of the form. The prior statuses will still be used for employees with the 2019 or earlier version of the form.

Social Security Wage Base

The 2025 social-security wage base increased to $176,100.

State and Local Tax Changes

• Alabama State Income Tax: Overtime Exemption formula name changed from ALSIT to ALSITT.
• The following states also had changes to state unemployment wage limits: Idaho, Michigan, and Minnesota.

The following state unemployment wage limits apply for the tax year 2025. For details on how to apply the limits for your state:

State	Employee Annual Wage Limit	State	Employee Annual Wage Limit
Alabama	8,000	Montana	45,100
Alaska	51,700	Nebraska	9,000
Arizona	8,000	Nevada	41,800
Arkansas	7,000	New Hampshire	14,000
California	7,000	New Jersey	43,300
Colorado	27,200	New Mexico	33,200
Connecticut	26,100	New York	12,800
Delaware	12,500	North Carolina	31,400
DC	9,000	North Dakota	45,100
Florida	7,000	Ohio	9,000
Georgia	9,500	Oklahoma	28,200
Hawaii	62,000	Oregon	54,300
Idaho	55,300	Pennsylvania	10,000
Illinois	13,916	Rhode Island	29,200
Indiana	9,500	South Carolina	14,000
Iowa	39,500	South Dakota	15,000
Kansas	14,000	Tennessee	7,000
Kentucky	11,700	Texas	9,000
Louisiana	7,700	Utah	48,900
Maine	12,000	Vermont	14,800
Maryland	8,500	Virginia	8,000
Massachusetts	15,000	Washington	72,800
Michigan	9,000	West Virginia	9,500
Minnesota	43,000	Wisconsin	14,000
Mississippi	14,000	Wyoming	32,400
Missouri	9,500	Puerto Rico	7,000
		Virgin Islands	31,000

Why Do You Need the Latest Payroll Tax Tables for Sage 50?

Sage Business Works is the latest version released. The W-4 changes that take place with the modification to the 2024 tax tables are distinct from the ones that existed in that year. The most recent version will adjust the State and Federal rate and restrict points to the recent year amounts before producing W-2s. Numerous novel techniques for automating all tax procedures are also included in this version.

How to Use Automatic Updates to Install the Sage 50 2025 Payroll Tax Updates?

Installing the Sage 50 2024 payroll tax changes via automated updates is rather easy. If you already use the Sage 50 2024 payroll module, you will be notified anytime a new version is available. However, you must bear the following things in mind before moving on with the installation of these updates.

• Make sure to properly back up any important company data.
• Take note of the precise location of your current payroll information.
• Choose a spot on your computer where you can save the updates.

To download and install the update:

• When you shut down your software, you will be notified that the update is ready to install once it is automatically sent to you.
• The version for this tax update is 20250102.

To confirm that the payroll tax update has been applied:

• Open your Sage 50 company.
• Select Help > About Sage 50 Accounting.
• Check that the installed Tax Update version number matches 20250102.

You are now prepared to install the Sage 50 2025 Payroll Tax Updates:

The steps to take are as follows:

Step 1: Open Sage 50 2024

• Launch Sage 50 2024 software on your system.

Step 2: Select the Appropriate Tax Year

• Click on the button related to the tax year you’re working with.

Step 3: Log in to the Payroll Module

• Log in to the Payroll module using your credentials.

Step 4: Access the Menu Bar

• Navigate to the menu bar within the Payroll module.

Step 5: Click the Help Button

• Click on the “Help” button in the menu bar.

Step 6: Select System Information

• From the Help menu, select the “System Information” option.

Step 7: Locate the Payroll Data Directory

• View for the connection to the payroll data directory.
• The location of the given data directory will depend on your system setup.

Step 8: Note the Data Directory Location

• The data directory path indicates the local C drive, which means the payroll data is stored on your local system.
• The data directory path consists of a mapped network drive or path indicating where the payroll data is located on the network.

Step 9: Make a Note of the Directory’s Link

• Note the link to the directory that leads to the Sage payroll program or setup.
• This link will provide the necessary information to locate the payroll data and related files.

Note: The instructions provided are based on general procedures, and specific steps and options may vary depending on the version of Sage 50 you are using. It is advised that you refer to the Sage 50 documentation or contact their Sage 50 support team for exact instructions tailored to your specific setup.

How to install payroll tax updates in Sage 50?

Stay up-to-date with the latest federal, provincial, and local payroll tax rates with Sage 50 payroll tax updates. Manually installing payroll tax updates is described in this article.

Step 1: Check for updates within the program

• You can check for updates by going to Services, Check for Updates, and click to Check Now.
• Click Download.
• Note: You can check for updates again if you do not see the Download prompt when you close Sage 50. Right-click the Sage 50 icon and select Run as administrator, then Check for Updates again.
• To begin the installation, close Sage 50.
• Follow the instructions on the screen.

Step 2: Install the tax update manually

• To open File Explorer, press the Windows key + E.
• Navigate to your data path in File Explorer.
• Locate and open the Updates folder in the data path folder.
• The tax update file will appear in the format of payroll year, month of update, and Sage 50 version.
• For example, Tax2025Jan_Release2024.exe is the name of the January 2025 tax update.
• Install the update by double-clicking it and following the prompts.

How to Update Sage 50 Payroll Tax Tables for 2024?

Your system must be updated with the most recent 2025 Sage 50 payroll tax tables. To make it possible, you must do the things on this list.

Step 1: Open the “My Computer” Menu

• Start by choosing “My Computer” from the menu option.

Step 2: Access Sage 50 Data Path

• Sage 50 allows path detection liens, with the “Browser” option provided.

Step 3: Trace Data Path

• On the Connected Resources page, locate and click the link at the top of the page that says “How to find data and program routes.”
• Follow the instructions carefully to identify the data path on your system.

Step 4: Locate the Tax Update File

• Once you know the path, navigate to the “Update Folder” as directed within the given path location.
• Look for the tax updated file in the folder.

Step 5: Check File Details

• The tax update file name will be displayed on your screen, along with specific parameters like payroll year, update month, and Sage software version.
• Verifying the information exactly matches your needs.

Step 6: Run the Update File

• Select “Run the update file” to start the update process.
• Follow the on-screen instructions that you see.
• Be sure to read and agree to any terms and conditions presented.

Step 7: Save Installed Tax Forms

• To save the installed tax form, repeat the first three steps.
• Identify the Sage 50 data path and locate the folder where the tax forms are saved.
• Save the installed tax forms to confirm that they are maintained after the update process.

Step 8: Finishing

• After the update process is complete, you are ready to move forward with the next steps in your process.

Note: The specific steps and options may vary depending on the Sage 50 version you are performing. It is advised that you view the Sage 50 presentation or contact their Sage 50 support team for specific instructions tailored to your specific setup.

Benefits of using Sage 50 Payroll tax table

• Manage payroll more quickly and simply than by manually performing the calculations.
• Cost-effective compared to using an outside payroll service
• Enhanced payroll reporting and withholding accuracy

Please sign up for Sage Business Care Platinum or Gold if you want to receive updates to the payroll tax tables as the tax rates change throughout the year.

Twice a year, in late December and late June, we typically release updates to the Sage 50 payroll tax tables. These dates could change, though, if the appropriate government agencies are tardy in providing the data we need to produce the updates. In some cases, we may also release interim updates in addition to these semi-annual ones. For the most recent details regarding the availability of the payroll tax update, visit the shipping dates page.

How to Deal with the Situation When Tax Form Update Windows Do Not Appear?

The following steps must be taken into consideration:

• Minimize the Sage 50 program.
• You’ll be prompted to install the Sage 50 update window on your computer.
• To complete the installation, click a button and then follow the on-screen instructions.
• After the update is complete, the tax form will appear.

What Should I Do If I Am Unable to View Sage 50 Payroll Tax Calculations When Starting a New Payroll Year?

When you are unable to view payroll tax calculations when starting a new payroll year, the following steps must be taken:

• Navigate to the file, then select Payroll Formulas.
• Select User-maintained Formulas.
• The Formula ID drop-down-list allows you to select the SUI formula from the previous year.
• The formula ID should be updated to include the previous number at the end.
• Add the year to the formula’s name to make it current.
• Change the limit and speed as needed.
• Press the Save button.
• Make a paycheck in the end.

How do I access the Taxes option while the most recent tax table is being updated?

The tabs you must open to access the taxes option while the most recent tax table is being updated are listed below:

• Open the Home window.
• Choose the Employees and Payroll tab.
• Now locate the tasks pane and right-click the employee’s icon.
• Choose Modify Employee from the menu.
• Select the desired employee from the list at this point.
• Finally, press the “OK” button.

Conclusion!

This article explains how to install the Sage 50 Payroll Tax Tables Update. However, if you still need assistance or are looking for a solution to a technical issue with your Sage 50, contact our Customer Helpdesk. Our specialists will get in touch with you soon to assist with the installation of the Sage 50 Payroll Tax Tables Update.

Frequently Asked Questions