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Sage 50 Payroll Taxes Calculation Problems, Issues, and Errors

Sage 50 Payroll Taxes Calculation

Do you have any business customers who have workers they need to pay? When everyone agrees, you do. For some business owners, handling finances can be one of the most challenging and time-consuming tasks they must complete to keep their company afloat. Generally, this is where you and most people who rely on trading and financial advice go to save the day. However, there is also a more detailed resolution to the issue. Sage 50 payroll taxes errors stop users from preparing and submitting their taxes on time. Errors usually occur with tax and payroll calculations, payroll subscriptions, or missing tax and payroll data. Other exact situations can also result in payroll tax errors.

When calculating employee payroll, users typically get the error message “Sage 50 payroll tax calculations could not be found.” It takes place when the employee record’s payroll formula is missing or when the filling status is incorrectly chosen. You can easily correct this error in Sage 50 with the assistance of the solutions that are discussed below, so don’t worry.

Users frequently run into the “Sage 50 Payroll Tax Calculations Could Not Be Found” error when calculating employee payroll. It happens when the filling status is chosen incorrectly or when the payroll formula is missing from the employee record. But don’t worry, using the solutions for the incorrect payroll taxes calculation issue that are discussed below, you can easily correct this mistake in Sage 50.

Steps to Update Sage 50 Server and Workstations

Contents

Step 1: Open Sage 50
Launch the Sage 50 software and navigate to the Services menu.

Step 2: Check for Updates
In the Services menu, select the option to check for updates.

Step 3: Choose Check
Click on “Check Now” to start the update-checking process.

Step 4: Select Download
If updates are available, select the option to download them.

Step 5: Restart Sage 50
After the download is complete, restart Sage 50 to apply the update. And follow the on-screen instructions to complete the installation of updates.

Step 7: Navigate to the Server’s Sage 50 Folder
Find and login to the Sage 50 folder on the server where the software is installed.

Step 8: Run ClientInstall.bat
Double-click on the “ClientInstall.bat” file in the Sage 50 folder.

Step 9: Wait for Workstations to Install Updates
Give all connected workstations enough time to install the updates.

Note: The specific steps and options may differ depending on the version of your Sage 50. It is advised to consult the Sage 50 documentation or contact their Sage 50 support team for precise instructions according to your specific setup.

Resolutions of Sage 50 Payroll Taxes Calculation Problems

There are several ways to resolve this error depending on the error message or the functions that are involved. You are unable to locate Here are a few examples of solutions:

Solution 1:The error states that the FIT, SIT, FICA, FUTA, or MEDICARE formulas could not be located, take the following actions

  1. Visit the Sage 50 Accounting Help page.
  2. Check that the current year is listed by Installed Tax Service (for example, 201200301)
  3. Please refer to How to install updates if you do not already have the most recent tax update installed.
  4. Access Sage-Maintained Formulas by selecting File, Payroll Formulas.
  5. Make sure the Formula ID drop-down list has the formulas for the current year listed (the formula name format displays the year; for example, the 2020 Medicare formula is named MEDICARE 20)
  6. Default Information, Employees, under Maintain
  7. Make sure the tax fields are checked to calculate (Calc) and set to use the proper formulas on the Employee Fields tab:
    • Tax on Federal Income: FIT
    • Tax on State Income: **SIT
    • Taxes on local income: **LIT
    • Insurance: Medicare
    • FICA EE Social Security
  8. Make sure the tax fields are checked to calculate (Calc) and set to use the proper formulas on the Company Fields tab:
    • Tax on Federal Unemployment: FUTA ER
    • Social Security: ER FICA
    • The Medicare program
    • State Unemployment tax: **SUI
  9. Click OK.
  10. To maintain, first, go to Admins/Sales Reps
  11. Check to see if Use Defaults is selected for the taxes on each employee record’s Employee Fields and Company Fields.
  12. Check the Federal, State, and (if necessary) Local filing statuses on the Withholding Info tab by selecting one from the drop-down list.
  13. Check to make sure the State Locality is using the right state abbreviation; it must be the recognized 2-letter postal abbreviation.

Solution 2: The formula does not exist in User-Maintained Formulas.

  1. Navigate to File, Payroll Formulas, and User-Maintained Formulas.
  2. Note: If this results in the error “A managed exception was caught,” see Error: “A managed exception was caught…” when opening User-Maintained tax tables.
  3. Enter XXSUI as Formula ID, replacing XX with your state abbreviation (for example, GASUI)
  4. Enter XXSUI ER YY in the Formula Name field, replacing XX with your state abbreviation and YY with the current tax year abbreviation (for example, GASUI ER 20)
  5. Set the Effect on Gross Pay to Subtraction of Gross Set Filing Status from All Set How would you classify this formula to Tax Set Tax Agency to State?
  6. Select your state from the drop-down menu.
  7. Check ‘Apply this formula to the Payroll Tax report as a filter’.
  8. Enter the following formula in the Formula field:
    • LIMIT = 0.00;
    • PERCENT = 0.00;
    • TAXABLE_GROSS = YTD_LIMIT (ADJUSTED_GROSS, LIMIT);
    • ANSWER = -TAXABLE_GROSS * PERCENT%
  9. Change the LIMIT and PERCENT to the correct limit and percentage set by your state; the correct values can be obtained from your state’s Department of Revenue.
  10. Select Save.
  11. Make a paycheck and confirm that the error has been corrected.

Solution 3: When you’re starting a new payroll year

  1. Select File, Payroll Formulas, and then User-maintained Formulas.
  2. From the Formula ID drop-down list, select the previous year’s SUI formula.
  3. Change the Formula ID to end with the next number in the sequence.
  4. In the Formula Name, include the current year rather than the previous year (for example, GASUI ER 19 to GASUI ER 20).
  5. If necessary, change the Rate and Limit.
  6. Save the file.
  7. Check your paycheck to make sure the error has been fixed.

Solution 4: The SUI is paid to more than one state.

  1. Navigate to File, Payroll Formulas, and finally, Formula that is maintained by the user.
  2. From the Formula ID drop-down list, choose an SUI formula.
  3. Change the state abbreviation in Formula ID and Formula Name to that of the additional state (for example, change GASUI to ALSUI)
  4. Check to see that the year in the Formula Name is set to the current year.
  5. Change the Rate and Limit as needed.
  6. Click Save.
  7. If necessary, repeat for additional states.
  8. Navigate to Maintenance, Default Information, and then Employees.
  9. On the Company Fields tab, ensure that the SUI formula is set to **SUI, and then click OK.
  10. Navigate to Maintenance, and then Employees/Sales Representatives
  11. Make sure the State Locality is set to the postal 2-state abbreviation on the Withholding Info tab.
  12. Check the SUI box on the Company Fields tab. Use the Defaults
  13. If you made changes to an employee record, click Save Repeat for additional employees if necessary.
  14. Make a paycheck and double-check that the error has been corrected.

Solution 5: The employees live in multiple states but SUI is only paid to one.

  1. Navigate to Maintenance, Default Information, and then Employees.
  2. Make sure the formula for SUI is set to XXSUI (replacing XX with the state abbreviation) on the Company Fields tab, and then click OK.
  3. Navigate to Maintenance, and then Employees/Sales Representatives
  4. Check the SUI box on the Company Fields tab. Use the Defaults.
  5. If you made changes to an employee record, click Save.
  6. If necessary, repeat for additional employees.
  7. Make a paycheck and double-check that the error has been corrected.

Solution 6: Couldn’t Find a Calculation of Local Income (LIT).

  1. Navigate to File, Payroll Tax Formulas, and finally Sage-Maintained and User-Maintained Formulas; open each LIT formula and take note of the Localities that have been set.
  2. Localities entered on each employee’s record (in Maintain, Employees/Sales Reps, Withholding Info tab) must exactly match the localities used in the formula(s)
  3. IDs are case-sensitive and must be typed exactly as specified in the formula.

Solution 7: Unable to locate a user-created calculation.

If the error indicates that a calculation you created (401K, Vacation, Sick, etc.) cannot be found, make sure the formula is present and updated for the current year under File, Payroll Formulas, and then User-Maintained Formulas.

Sage 50 Payroll taxes Calculations could not be found

When calculating employee payroll, users usually receive the error message Sage 50 Payroll taxes calculation not found. This happens when the payroll formula of the employee record is missing or when the fill condition is wrongly selected.

Causes of Sage 50 Payroll taxes calculation errors:

  • The most recent tax update is not installed.
  • The product is not activated.
  • The use of a dated version
  • Trying to issue payroll more than 20 days after the support plan renewal date.

Troubleshooting Sage 50 Payroll Tax Calculation Errors during Payroll Entry

When Sage 50 calculates paychecks during Payroll Entry, it also checks the employee setup data and the payroll formulas.

What should you do if Sage 50 calculates incorrect or zero amounts when entering payroll?

Federal, state and most local payroll taxes won’t be calculated automatically for you during payroll entry if Sage 50 is a newly installed product. (Payroll tax amounts may occasionally be incorrect or zero.) You should sign up for a plan that includes payroll and install the most recent update to be able to calculate these tax amounts within Sage 50 and to stay up to date with regulatory changes. If not, you will need to manually figure out and enter your Sage 50 payroll taxes and other deductions.

If you have the most recent update installed, the version number’s first four digits represent the current payroll tax year. The first four digits of the version represent the current payroll tax year if you have the most recent version installed. (For example, 20220104 denotes the payroll tax formulas for 2022, version 0104.) If the first four digits of the tax formula version do not correspond to your current payroll tax year or if the tax table version is 19000101 (a generic tax formula), you should install the most recent update.

If taxes are being calculated incorrectly and your formulas were manually set up:

Please review your tax calculations and contrast the results with the tax data provided by your federal, state, or local governments.

What to do if Sage 50 displays errors while entering payroll?

Sage 50 tries to describe the problem and give you details about the error so that if there is a problem calculating or displaying a paycheck, you can fix it. Sage 50 tries to describe the problem and give you details about the error so that if there is a problem calculating or displaying a paycheck, you can fix it.

The issue may be that last year’s formula hasn’t been updated for this year. If you subscribe to a payroll plan, you’ll need the latest tax information.

Why are the Sage 50 payroll taxes calculated but they are calculated incorrectly?

One of the most common reasons why taxes appear to be calculated incorrectly on a check is that a deduction item was incorrectly set up. To resolve any potential program file errors, you can reinstall Sage 50 Accounting. You must have access to the setup file for your version of Sage 50 to perform a reinstallation. Additionally, you must have the software’s activation key to access the program after it has been reinstalled.

Causes of incorrect tax calculations:

This explains how tax calculations could be off when processing payroll. We advise you to look over the following information.

  1. The tax information is kept on file for each employee.
  2. The payment options are configured for taxation properly.
  3. Pension deductions and other types of deductions are configured properly.
  4. Holiday pay is configured properly for tax, PRSI, and USC calculations.

Solutions to Sage 50 payroll taxes calculating but they are calculating incorrectly

1. Not updated the tax tables

Tax tables that have not been updated are the second most typical cause of incorrect tax calculations. The program’s tax tables are not updated when a new version is loaded. You can find out in the User Bulletins if we’ve made any changes to the tax tables on an updated version. Follow these steps if a User Bulletin instructs you to update the data on your federal or state tax tables:

  • Assuming your workstation is networked, confirm that no clients are open on any other workstations.
  • Make your selection from Setup, System Configuration, Payroll Tax Information, and Update.
  • Click the Yes button to replace all outdated current and previous federal and state tax information with the newly updated current and previous federal and state tax information when the prompt asking if you want to update your federal/state tax tables appears.

Your tax tables won’t be updated if you don’t do the previous steps, and your taxes—including FICA-SS and FICA-Med—won’t calculate properly. Even if you only use our Payroll Compliance module without performing live payroll, you must update your tax tables. The reason for this is that the tax tables contain some tax data (such as FICA and FUTA).

2. FICA Is Under- or Over-Withheld Year-to-Date

  • The way FICA is calculated is another frequent cause of incorrect FICA calculations. On a cumulative year-to-date basis, FICA-SS and FICA-Med are computed. When you enter the next payroll check, the program will try to adjust for any over- or under-withholding that has occurred for the employee so far this year.
  • This frequently happens with converted clients. Once you begin entering checks in Creative Solutions Accounting, it will attempt to correct any over- or under-withholding of FICA for the year that may have occurred in your employee’s previous program.

Sage 50 Payroll taxes are not calculated for all employees

Federal, state and the majority of local payroll taxes won’t be calculated automatically or accurately during payroll entry if Sage 50 is a newly installed product. You should sign up for a plan that includes payroll and install the most recent update to be able to calculate these tax amounts within Sage 50 and to stay up to date with regulatory changes.

Cause of Sage 50 Payroll taxes are not calculated for all employees

  1. Not recording the number of hours worked per pay period on the employee’s file or paycheck.
  2. Undetermined Pay Type Rate.
  3. Missing the pay period salary entry on the employee record or paycheck.
  4. No default tax settings are enabled for the employee.
  5. Gross employee compensation is insufficient to calculate taxes.

Solution of Sage 50 Payroll taxes are not calculated for all employees

Solution 1: Update the subscription

  1. Navigate to Help, Sage 50 Subscription Updates.
  2. Select Online, then OK.
  3. Again, click OK.
  4. If payroll taxes are calculated, proceed to Section 2.

Solution 2: The paycheck date is after the plan renewal date

  1. Navigate to Help, Sage 50 Accounting.
  2. Look for the Plan Level line.
  3. Check that the paycheck date is not later than the auto-renewal date. If the pay date falls after the renewal date, you must wait until the plan renews before issuing the check. Payroll will not be calculated until the subscription is renewed.

Solution 3: Determine the best tax formula for each tax

  1. Navigate to Employees, Default Information, and Maintain.
  2. Navigate to the Employee Fields section.
  3. Choose the Calc box for each tax you want the program to calculate.
  4. Select the appropriate tax formula by clicking the Formula field next to each checked Calc box:
    • Fed Income, select FIT
    • Soc_Sec, select FICA EE
    • Medicare, select MEDICARE
    • State, if used, type **SIT
    • Local, if used, type **LIT
  5. Next to each tax you’ve added, click the Adjust button.
  6. Check that the Use box next to Gross is selected.
  7. Put a check in the Use box next to any fringe benefits that need to be taxed for the tax you’re currently editing.
  8. Put a check in the Use box next to any deductions that are already pre-taxed for the tax you’re editing.
  9. When finished, click OK.
  10. Steps 5 to 9 must be repeated for each additional tax.
  11. Navigate to the Company Fields tab.
  12. Select the Calc box for each tax you want the program to calculate.
  13. Select the appropriate tax formula in the Formula field next to each checked Calc box:
    • Soc_Sec_ER, select FICA ER
    • Medicare_ER, select MEDICARE
    • FUTA_ER, select FUTA ER
    • SUI_ER, type **SUI ER
  14. Next to each tax you added, click the Adjust button.
  15. Check that the Use box next to Gross is selected.
  16. If you have any fringe benefits that must be taxed for the tax you are currently editing, check the Use box next to that benefit.
  17. Put a check in the Use box next to any deductions that are already pre-taxed for the tax you’re working on.
  18. When you’re finished, click OK.
  19. Steps 15 through 18 must be repeated for each additional tax.
  20. To save your changes, click OK once more.
  21. If taxes are now calculated on employee paychecks, proceed to Section 5.

Section 4 – User Account Control (UAC) is preventing Sage 50 from running

  • Start the program as Administrator or turn off User Account Control (UAC).

Sales Tax isn’t Calculating on my Sage 50 Invoices?

Here are the steps to take if your Sage 50 invoices are no longer calculating sales tax or you need to set up sales tax:

  1. Choose Maintain from the main menu’s “Default Information- Inventory Items.”
  2. Choosing the Taxes/Shipping tab.
  3. Verify that Field 1 is Regular.
  4. In the Tax column, mark the box.
  5. To calculate taxes for any additional Field row, check the box in the Tax column.
  6. Choosing OK.
  7. Check to see if the sales invoice includes a sales tax calculation.

How Do I Fix the Sage 50 Payroll Update Error?

When you mind these steps, you will be able to manage and solve this problem easily. You will come across a variety of problems, and these steps will once again help you manage them easily with the software.

  1. The very first and foremost thing that can be done is to update the data version to 22.04 and then use the software.
  2. On the device, you are using, run Sage 50 as an administrator.
  3. After you have removed the locks, repair the software’s database.
  4. You can also try renaming the payroll.mbd file.

Solution 1: Upgrade and install the most recent version of Sage 50

  1. When the latest Sage 50 version is out of date, its add-ons, such as Payroll, are automatically deactivated.
  2. If your membership has expired, Payroll will no longer charge your credit card. Ensure they have sufficient money to add more later.
  3. Some users may need to purchase a new product to access the payroll screen.
  4. We can provide you with the best payment plan for your payroll upgrade or provide you with one year of payroll updates and installation service.

Solution 2: AUSE004 Sage Error

An error notification “Download failed” may appear when you log in to your Extended Payroll Update. If it doesn’t happen to you and you see errors like this, try using a different website or device. If there is a problem changing proxy servers may work. This solution also uses the Sage AUSE003.

Solution 3: AUSE005 Sage Error

If you encounter Sage error AUSE005, it means that there isn’t enough space on your device to download the software. If you don’t have enough space on your computer, make some so you can keep updating.

Solution 4: User Account Control (UAC) Can Also Prevent Sage 50 From Running

Inspect the settings of any security software and applications, as they may inhibit the software’s ability to update.

Solution 5: Use the Sage Program to access your product updates

  1. Keep visiting this page for the latest product updates.
  2. If an update is available, the app will download it in the background.
  3. Your software will prompt you to update when you want to exit the program.
  4. To update, run the program, and then close it.

Solution 6: Manually running updates was a waste of time

  1. Navigate to Start and select Computer.
  2. Proceed to the update’s default download location.
  3. C:\Users\Public\Public Documents\Sage Software\SimplyAccounting\Download
  4. View the SA 201UP.exe file.
  5. Double-click the file to open it.
  6. Install the Sage 50 Payroll Update by following the installation wizard.

Solution 7: Turn off antivirus software, firewalls, and any real-time scanners.

  1. Learn how to disable antivirus software so that you can convert files when needed.
  2. If the conversion fails again, turn off the firewall and try again.
  3. Check if payroll is working properly after optimization.

Conclusion!

Sage 50 users can use this manual to resolve many payroll tax problems. However, it can be overwhelming to deal with the software’s technical aspects at times. Contact our accounting software specialists if you need help resolving this problem right away. In cases where an error cannot be fixed, trial-and-error is used, where one step is followed by another.

You should be able to understand the error “Sage 50 Payroll Tax Calculations Could Not Be Found” more clearly after reading the solutions offered above. You can, however, contact Sage Customer Helpdesk if you need assistance or need a solution to a technical issue with Sage.


Frequently Asked Questions(faqs)

What exactly is a Sage 50 payroll formula?

The payroll formula, which varies by country, describes the process of calculating an employee’s or worker’s net pay by deducting federal charges (such as income taxes) and all other expenses (such as social security, Medicare, and so on) from gross earnings.

How do I calculate the federal income tax withholding for my employees?

You’ll need a copy of your employee’s Form W-4, as well as their gross pay, to figure out how much federal income tax to withhold. The next step is to decide which method you will use to calculate withholding. The wage bracket method and the percentage method are the two most common options for employers.

What exactly is Sage 50cloud payroll?

Works in conjunction with Sage 50cloud Payroll to assist you in managing complex legislation, automatically assessing your entire workforce, automating communications, and managing data and payments. Pricing for Sage 50cloud Payroll. Choose a payment plan. HMRC-approved payroll software is ideal for business owners and office managers.

What services does Sage Business Cloud accounting provide?

Products toggling the menu Products from the Past Accounting and Finance with Sage Business Cloud Accounting for small businesses accounting software available online. Manage your invoicing, cash flow, taxes, and payments, among other things. Online payroll software with basic HR tools from Sage Business Cloud Accounting Payroll.

How do I configure Sage 50’s sales tax authorities?

Select “Maintain| Sales Taxes…” from the Menu Bar to configure Sage 50’s sales tax authorities and codes. The “Set Up Sales Taxes” window is then displayed after doing this. The options for adding, modifying, removing, and otherwise maintaining sales tax codes and sales tax agencies are displayed in this window.

How do I fill out the tax fields on sales and purchase invoices?

By pressing Ctrl + J to view the journal entry while in the sales/purchase invoice, you can confirm that the tax amounts are being applied to the proper accounts. Choose the tax code. The drop-down list allows you to choose a tax code. The line item’s total should be entered in the Amount field rather than the Price field if inventory items are not being used.

What do payroll tax updates entail?

These updates offer the most recent/accurate rates, calculations, payroll tax forms, e-file options, and payment methods for supported state and federal tax tables. Then we’ll have to switch back to paychecks. Click the Save & Close button to save your changes when you make them to an employee’s paycheck.

How do payroll issues get better?

The rate of overtime pay varies as well. Some businesses determine how many overtime hours the staff members worked during a given month. Therefore, it’s crucial to comprehend the company’s policies and take them into account when calculating the payroll to reduce payroll issues in these areas.

What causes incorrect payroll tax deductions?

Taxes are incorrectly subtracted for a few different reasons. The annual salary cap is exceeded in total, or the employees’ most recent gross pay is too low, which could be the cause. Congratulations on updating QuickBooks Desktop to the most recent version and the payroll tax table. Try reverting the paycheck and then creating them again.

What occurs if payroll check information is entered incorrectly?

When the payroll checks are not entered in the proper order, this typically occurs with clients who use after-the-fact payroll. When a payroll check template is used for an employee, the application deducts payroll taxes at the limit that is specified in the template, even if the employee exceeds the threshold limit for the tax.

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