21st Century Accounting Payroll Tax Updates Download

Payroll Tax Update January 1, 2021

STOP!! Please read about the important changes in this Tax Update below BEFORE you install. You can scroll down or click this link to get there.

Please provide your name, email address, and 21st Century Accounting or Payroll for Adagio Product Serial Number to download the latest Payroll Tax Update. You can find your Product Serial number on your C21 main menu under Help/About. This update is available only for registered users of C21 who have a current subscription for Payroll Tax Updates. If you have questions about this Tax Update, please contact us before proceeding.

Fill out the form and click send to proceed to the download page. All fields are required.

If you are unable to download the Payroll Tax Update, you may need to renew your subscription. Please contact us to renew.

If you receive error message V03342003, you may have entered your serial number incorrectly. Please re-enter the serial number and try again.

To see a list of past Payroll Tax Update Changes, click here.

21st Century Accounting Payroll Tax Update Changes (Cumulative)

January 1, 2021 Payroll Tax Update

This Tax Update includes the FIT changes for 2020 W-4s

If you have not previously reconfigured your employees and are not ready to do so for 2020 W-4s, please click here to install the Payroll Tax Update which includes everything below with FIT for 2019 or earlier W-4s ONLY. C21 requires that the first Tax Table for the new year be named 01-01-2021 so the names of both Tax Tables are the same. Please backup your company data before you install this Tax Table or make a copy of your C21/data folder to a safe location. If you install this Tax Table and receive a C21 message indicating that you need to reconfigure you employees for US FIT, you have installed the incorrect Tax Table. Close C21 and install the correct Tax Table and then restore your company backup.

Federal
Support for 2020 Federal Form 940
Support for 2020 Federal Form 940 Schedule A
Support for 2020 Federal Form 944
Federal Income Tax (FIT)

State Forms
None

State and Local Income Tax
Arkansas (AR SIT)
California (CA SIT)
California SDI
Iowa (IA SIT)
Kentucky (KY SIT)
Maine (ME SIT)
Michigan (MI SIT)
Missouri (MO SIT)
New York State (NY SIT)
New York Yonkers (Yonkers IT)
South Carolina (SC SIT)

SUTA Wage Base (Maximum taxable earnings)

State	2020	2021
AK SUTA	41,500	43,600
AR SUTA	7,000	10,000
CO SUTA	13,600	13,600
HI SUTA	48,100	47,400
IA SUTA	31,600	32,400
ID SUTA	41,600	43,000
IL SUTA	12,740	12,960
KY SUTA	10,800	11,100
MO SUTA	11,500	11,000
MT SUTA	34,100	35,300
NC SUTA	25,200	26,000
ND SUTA	37,900	36,400
NJ SUTA	35,300	36,200
NM SUTA	25,800	27,000
NV SUTA	32,500	33,400
NY SUTA	11,600	11,800
OK SUTA	18,700	24,000
RI SUTA	24,000	23,600
UT SUTA	36,600	38,900
VT SUTA	16,100	14,100
WA SUTA	52,700	56,500
WY SUTA	26,400	27,300

 

COVID-19 Related Sick Pay

COVID-19 Families First Coronavirus Response Act (FFCRA) US Social Security Employer exemption

This Tax Update contains changes related to FFCRA Sick Pay. If you have employees entitled to this type of pay, you will need to create the following new Income factors for wages required to be paid under the Emergency Paid Sick Leave Act (ESPLA) as enacted under the FFCRA. This Act requires employers with less than 500 employees to provide paid sick leave to employees unable to work or telework after March 31, 2020, and before January 1, 2021 due to reasons outlined below.

Create one or both of the following Income Factors to implement these changes:

COVIDSICK

In these circumstances, you are entitled to a maximum of $511 per day, or $5,110 total over the entire paid sick leave period.

1. Are subject to a Federal, State, or local quarantine or isolation order related to COVID-19;
2. Have been advised by a health care provider to self-quarantine due to concerns related to COVID-19;
3. Experiencing symptoms of COVID-19 and are seeking medical diagnosis. This falls under the Emergency Paid Sick Leave Act.

COVIDCARE

In these circumstances, you are entitled to compensation at 2/3 of the greater of the amounts above at a maximum of $200 per day, or $2,000 over the entire two week period.

1. Caring for an individual who is subject to a Federal, State, or local quarantine or isolation order related to COVID-19 or an individual who has been advised by a health care provider to self-quarantine due to concerns related to COVID-19;
2. Caring for your child whose school or place of care is closed, or child care provider is unavailable, due to COVID-19 related reasons;
3. Experiencing any other substantially-similar condition that may arise, as specified by the Secretary of Health and Human Services
   

This Income must be subject to US SS and any other taxes related to this sick pay. Once you create this Income factor, apply it to eligible employees.

If you previously created an Income for this type of sick pay under a different name, you should change the Income name to COVIDSICK and/or COVIDCARE. In order for this change to be applied to eligible sick pay, it must be called COVIDSICK or COVIDCARE in all caps.

COVIDFAMILY

Qualified family leave wages you paid to your employees under the Emergency Family and Medical Leave Act under the FFCRA. This requires employers with less than 500 employees to provide public health emergency leave under the Family and Medical Leave Act of 1993 to an employee who has been employed for at least 30 calendar days. The requirement to provide leave generally applies when an employee is unable to wok or telework due to the need to care for a child under the age of 18 because the school or place of care has been closed, or the childcare provider is unavailable, due to a public health emergency. The first 10 days for which an employee takes leave may be unpaid. During this period, employees may use other forms of paid leave, such as qualified sick leave, accrued sick leave, annual leave, or other paid time off. After an employee takes leave for 10 days, the employer must provide the employee paid leave for up to 10 weeks. The qualified family leave wages can't exceed $200 per day or $10,000 in the aggregate per employee for the year.

Once you create one or both of these Income factors, apply them to eligible employees. This Income must be subjct to US SS and any other taxes related to this sick pay.

If you previously created an Income for these types of sick pay or family leave under a different name, you should change the Income name to COVIDSICK, COVIDCARE, or COVIDFAMILY. In order for this change to be applied to eligible sick pay, it must be called COVIDSICK, COVIDCARE, or COVIDFAMILY in all caps.

Please click here for more detailed instructions on applying these changes.

Instructions for configuring your employees for 2020 W-4s or previous W-4s

Questions?
If you have questions about this information or require our assistance, please contact us here.

Please do the following before installing this update:

1. Make a backup of all of your companies.
2. Once you install a Tax Update configured for 2020, if you have not previously reconfigured your employees for 2020 W-4s, you will need to go to Payroll/Configure/Employees and reconfigure whichever employees you need to Calculate Payroll for in the future. In other words, you cannot run a payroll for any employee that has not been reconfigured. You do not need to reconfigure employees that you do not need to run payroll for.
3. For tips on more efficient payroll configuration, see our Hot Topic: C21 Tips for Efficient Payroll

Configuration information for this Payroll Tax Update

Due to changes to Federal Income Taxes for 2020, you will need to reconfigure your employees before calculating your next payroll, even if you are not using 2020 W-4s. Please keep this in mind before installing this Tax Update as you will need to reconfigure your employees in order for these Tax Tables to be implemented.

After installing this Tax Update, if you do not see the new fields available in Configure/ Employees, go to Payroll/Calculate Payroll, and start a 2020 payroll. Close out of Calculate Payroll and you should see the fields in Configure/Employees.

If you have multiple employees you can reconfigure a little at a time by saving your changes as you go. However, you will not be able to Calculate Payroll for employees that have not bee reconfigured. You can also OK all of your employees and then go back and reconfigure them when you are able. Please note that when you OK your employees, the filing status will default but the status may not be correct. Please double check the status before you run payroll for those employees.

Below you will see references to 2019 Form W-4. This applies to Form W-4 from previous years as well. If an item below only references 2020 Form W-4, you can leave that box blank if you are using a previous year's form.

In Payroll/Configure/Employees, you will see the following Pay Factors for US FIT :
 

Exemptions – If you are using 2019 Form W-4, leave the number of exemptions as they are. If you are using 2020 Form W-4, use the chart below to enter the correct number:

Filing Status	Step 2	Number to enter
Married Filing Jointly	Step 2 NOT checked	3
Single, Head of Household, Married Filing Separately	Step 2 NOT checked	2
All Filing Statuses	Step 2 Checked	0

Other Income Amount – Enter the amount in Step 4(a) of your 2020 W-4 Form.

Deductions Amount - Enter the amount in Step 4(b) of your 2020 W-4 Form.

Filing Status - Use the tables below to enter the correct status.

2019 Form W-4:        

Filing Status	Status Code
Married Filing Jointly	M19 1 Job
Single, Married Filing Separately, or Head of Household	S19 1 Job
Nonresident Alien	NRA

2020 Form W-4 Step 2 NOT checked:

Filing Status	Status Code
Married Filing Jointly	M19 1 Job
Single or Married Filing Separately	S19 1 Job
Head of Household	H20 1 Job

2020 Form W-4 Step 2 Checked:

Filing Status	Status Code
Married Filing Jointly	MFJ20 2 Job
Single or Married Filing Separately	S20 2 Job
Head of Household	H20 2 Job
Nonresident Alien	NRA2020

Dependent Amount – Enter the currency amount listed on 2020 Form W-4 in Step 3.

Exempt from Tax – Check this box if the employee is exempt from tax.

Additional Withholding – Enter the currency amount listed on the 2020 Form W-4 in Step 4(c). This is the additional amount to be withheld per pay period.

North Dakota SIT

Please be aware of the following changes to North Dakota statuses and allowances. You will need to reconfigure your employees in Payroll/Configure/Employees before you will be able to Calculate Payroll.

Form	Factor	Change
2019 Form W-4	Head of Household	Select Filing Status 19 Head of Household
2020 Form W-4	Head of Household	Select Filing Status 20 Head of Household
2020 Form W-4	Allowances	Enter Zero Allowances