Latest Sage 50 Tax Updates
September 2025 Tax Update Release
This bulletin outlines the changes included in the September 2025 Sage 50 Payroll Solutions Update for Sage 50 Accounting, Release 2024.
Federal Tax Changes
None
State and Local Tax Changes
- Maryland State Income Tax: Updated withholding rates for state income tax.
- Ohio State Income Tax: Updated withholding rates for state income tax.
2025 State Unemployment Wage Limits
The following state unemployment wage limits apply for the 2025 tax year:
| 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 |
Bold and Red text indicates that the wage base limit changed in the September 2025 tax update.
Tax Forms
Payroll tax forms in the Payroll Tax Form Selector window were updated on or after December 20, 2024. To check for updates, select a federal or state form and click Next. If an update is available, the next window will offer an option to automatically update your forms. It is recommended to apply all available updates.
Note: Updating payroll forms also refreshes the list of forms in the Payroll Tax Form Selector window. If you try to run year-end 2024 forms, such as W-2, 940, 943, or 945, but only see the 2023 forms, updating will display the correct 2024 forms.
- Select the 2023 form that you want and click on OK.
- If you have a current Sage 50 subscription, the next window will prompt you to update your forms.
- After the update, the 2024 year-end forms will appear in the Payroll Tax Form Selector window.
Special Note: The taxing authorities approve Sage 50 forms. Some states have not yet approved their forms. Any form that can be printed and mailed but is awaiting approval will display the banner “Record Copy Do Not File.” Sage 50 will remove this banner once the forms receive approval. Periodic updates for these forms are available through the Automatic Update feature in Payroll Tax.
Making Sure That Your Tax Update is Applied
The version for this tax update is 20250901 for Release 2024. Follow these steps to make sure that your tax update was applied:
For Release 2024:
- Open your Sage 50 company.
- Select Help > About Sage 50 Accounting.
- Confirm that the Installed Tax Update version number matches the version number listed above.
Getting Help and Customer Support
Help within your Sage 50 application is a valuable source of information. Access it from any Sage 50 window by clicking the Help button or pressing F1. For additional guidance, visit the Sage Knowledgebase, join Sage City, or contact Sage Customer Support.
Sage 50 Tax Updates Releases
Federal Tax Changes
None
State and Local Tax Changes
- Expiration of Alabama Overtime Pay Exemption: The Alabama income tax exemption for overtime wages ended on June 30, 2025.
- Georgia State Income Tax:
- Updated withholding tax rates
- Revised standard deduction
- Updated dependent allowance amounts
- Idaho State Income Tax
- Updated withholding tables
- Revised allowance rates
- Maryland State Income Tax
- Updated withholding tables and rates
- Added Qualifying Widower filing status
- New York – Paid Family Leave: Updated withholding rate
- Oregon – TriMet Transit District (TM): Tax rate change
- Oregon – Lane Transit District (LTD): Tax rate change
- Pennsylvania – City of Philadelphia (Residents): Tax rate change
- Pennsylvania – City of Philadelphia (Non-Residents): Tax rate change
- Utah State Income Tax: Updated withholding rate
- Virginia State Income Tax
- Updated withholding tables
- Revised standard deduction
2025 State Unemployment Wage Limits
The following state unemployment wage limits apply for the tax year 2025.
| 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 |
Tax Forms
Payroll Tax Forms: Payroll tax forms were updated in the Payroll Tax Form Selector window on or after December 20, 2024.
To receive the latest update:
- Open the Payroll Tax Form Selector.
- Choose a Federal or State form and click Next.
- If an update is available, the next window will display an option to automatically update your forms.
- It is strongly recommended to install all available form updates.
Note: The payroll forms update also refreshes the list of forms in the Payroll Tax Form Selector.
If you are preparing year-end 2024 forms (e.g., W-2, 940, 943, 945) but only see 2023 versions listed:
- Select the 2023 form you need and click OK.
- With a current Sage 50 subscription, the next window will prompt you to update your forms.
- Once the update is complete, the 2024 year-end forms will appear in the Payroll Tax Form Selector.
Special Note: The payroll tax forms provided by Sage 50 are approved by the appropriate taxing authorities; however, a few states have not yet finalized approval for their forms. Any form that can be printed and mailed but is still awaiting approval will display the banner “Record Copy Do Not File.” This banner will be removed once the taxing agencies approve. Periodic online updates for these forms will be available through the Automatic Update feature in Payroll Tax Forms.
Making Sure That Your Tax Update is Applied
The version number for this tax update is 20250701 for Release 2024. Follow the steps below to make sure the update was applied correctly:
For Release 2024:
- Open your Sage 50 company.
- From the top menu, select Help > About Sage 50 Accounting.
- Confirm that the Installed Tax Update version number matches 20250701
Getting Help and Customer Support
Getting help and customer support ensures you get timely solutions whenever you face issues or have questions. Most platforms offer multiple support options such as live chat, phone assistance, email, or detailed help centers with guides and FAQs. Reaching out to our customer support not only helps resolve technical problems but also gives you confidence in using the product or service smoothly.
Accelerated Retirement Catch-Up Limits Under the SECURE 2.0 Act
The SECURE 2.0 Act introduces higher catch-up contribution limits for employees between the ages of 60 and 63 who participate in eligible retirement plans.
State and Local Tax Changes
- Arkansas State Income Tax: Withholding table and standard deduction changes.
- Illinois State Income Tax: Withholding tax rate change.
- Indiana State Income Tax: Withholding tax rate change.
- Louisiana State Income Tax: Withholding formula changes.
- Montana State Income Tax: Withholding table changes.
- North Carolina State Income Tax: Withholding formula changes.
- North Dakota State Income Tax: Withholding table changes.
- Oregon State Income Tax: Updates include changes to withholding tables, federal tax adjustments, and personal exemptions.
- Rhode Island Temporary Disability: Wage base and contribution rate changes.
- Vermont State Income Tax: Withholding table and withholding allowance changes.
2025 State Unemployment Wage Limits
Here are the state unemployment wage limits for the 2025 tax year.
| 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 | 32,600 |
| 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 | 29,800 |
| 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 | 31,100 |
Bold and Red text indicates a Wage Base Limit change included in the February 2025 tax update.
Payroll Tax Forms Update
Payroll tax forms were updated in the Payroll Tax Form Selector window on or after December 20, 2024. To receive updates, select any Federal or State form and click Next. If an update is available, the next window will give you the option to automatically update your forms. It’s strongly recommended to install all available updates.
Important: The payroll forms update also refreshes the form lists in the Payroll Tax Form Selector window. If you’re preparing a year-end 2024 form (such as W-2, 940, 943, or 945) but only see 2023 forms:
- Select the 2023 form you need and click OK.
- With an active Sage 50 subscription, the next window will prompt you to update your forms.
- Once updated, the 2024 year-end forms will appear in the Payroll Tax Form Selector window.
Special Note: All forms provided in Sage 50 are approved by the respective taxing authorities. Some states have not yet finalized approval for their forms. Any form awaiting approval that can still be printed and mailed will display the banner “Record Copy Do Not File.” This banner will be removed as soon as the taxing agency approves the form. Periodic online updates for these forms will be available through the Automatic Update feature in Payroll Tax Forms.
Making Sure That Your Tax Update is Applied
The tax update version is 20250201 for Release 2024. Follow the steps below to confirm the update was successfully applied:
For Release 2024:
- Open your Sage 50 company.
- Go to Help > About Sage 50 Accounting.
- Verify that the Installed Tax Update version number matches 20250201.
Getting Help and Customer Support
For assistance, we offer built-in help resources, online knowledge articles, and customer support services. You can access help directly within the software, explore step-by-step guides, or reach out to the support team for updates or payroll and tax-related questions.
This bulletin describes the changes included in the Sage 50 Payroll Solutions Update, released on January 2, 2025, for Sage 50 Accounting, Release 2024.
Federal Tax Changes
Federal Income Tax Withholding
The 2025 withholding tax tables have been updated. New filing statuses apply to employees who use the revised W-4 form (introduced in 2020). The previous filing statuses remain available for employees who continue using the 2019 or earlier version of the form.
State and Local Tax Changes
Alabama State Income Tax: The overtime exemption formula name has been changed from ALSIT back to ALSITT.
2025 State Unemployment Wage Limits
Here are the state unemployment wage limits for the 2025 tax year.
| 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 |
Note: The Wage Base Limit changes on January 2nd, 2025. Tax updates are shown in bold and red.
Payroll Tax Forms
Payroll tax forms were updated in the Payroll Tax Form Selector window on or after December 20, 2024. To check for updates, select a Federal or State form and click Next. If an update is available, the next window will give you the option to update your forms automatically. It is strongly recommended to install all available updates.
Note: The payroll forms update also refreshes the list of forms in the Payroll Tax Form Selector window. If you need to run a year-end 2024 form, such as W-2, 940, 943, or 945, but only see 2023 forms listed, then: [insert next step].
- Select the 2023 form you need and click OK.
- With an active Sage 50 subscription, the next window will prompt you to update your forms.
- After completing the update, the 2024 year-end forms will appear in the Payroll Tax Form Selector window.
Note: The taxing authorities approve all payroll tax forms in Sage 50. Some states have not yet finalized approval for their forms. Forms that can be printed and mailed but are still awaiting approval will show the banner “Record Copy Do Not File.” This banner will be removed once the taxing agency approves. Periodic online updates for these forms will be released through the Automatic Update feature in Payroll Tax Form.
Making Sure That Your Tax Update is Applied
The tax update version is 20250102 for Release 2024. Follow these steps to confirm the update is installed:
For Release 2024:
- Open your Sage 50 company.
- Go to Help > About Sage 50 Accounting.
- Verify that the Installed Tax Update version number matches 20250102.
Getting Help and Customer Support
You can find helpful information directly in your Sage 50 application. Click the Help button in the toolbar or press F1 while in a field to open Help and get answers.
