21st Century Accounting Payroll Tax Updates Download

Payroll Tax Update May 15, 2020

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.

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

21st Century Accounting Payroll Tax Update Changes (Cumulative)

May 15, 2020 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 May 10, 2020 Payroll Tax Update which includes everything below with FIT for 2019 or previous W-4s ONLY.

Federal

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.

State Forms
None

State and Local Income Tax
None

SUTA Wage Base (Maximum taxable earnings)
None

NOTE: You will not be able to run After the fact payroll or do Employee Adjustments for 2019 once you install this or any Payroll Tax Update that contains Tax Tables for 2020 W-4s. If you still need to enter payroll information for 2019, please install the March 31, 2020 update. If you already reconfigured your employees for 2020 W-4s, you will need to reconfigure them for 2019 before making adjustments. Please contact us if you require assistance.


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. Make sure all pay periods are closed before installing and you are completely done with 2019. You will not be able to do After the Fact payroll or Employee Adjustments for 2019 once you install this Payroll Tax Update.
  3. If you are not ready to install this update, please click here to install the March 31, 2020 Payroll Tax Update to get the most current Tax Tables without the 2020 W-4 configuration.

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 :
Configure Employees 

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

 

April 1, 2020 Payroll Tax Update

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

If you are not ready to reconfigure your employees for 2020 W-4s, please click here to install the March 31, 2020 Payroll Tax Update which includes everything below with FIT for 2019 or previous W-4s.

Federal

None

State Forms
None

State and Local Income Tax
None

SUTA Wage Base (Maximum taxable earnings)

State

2020

2019

AK SUTA            

41,500

39,900

CO SUTA          

13,600

13,100

HI SUTA          

48,100

46,800

ID SUTA           

41,600

40,000

IL SUTA           

12,740

12,960

NC SUTA           

25,200

24,300

ND SUTA           

37,900

36,400

RI SUTA           

24,000

23,600

 

NOTE: You will not be able to run After the fact payroll or do Employee Adjustments for 2019 once you install this or any Payroll Tax Update that contains Tax Tables for 2020 W-4s. If you still need to enter payroll information for 2019, please install the March 31, 2020 update. If you already reconfigured your employees for 2020 W-4s, you will need to reconfigure them for 2019 before making adjustments. Please contact us if you require assistance.

March 1, 2020 Payroll Tax Update

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

If you are not ready to reconfigure your employees for 2020 W-4s, please click here to install the January 31, 2020 Payroll Tax Update which includes the state changes below and FIT for 2019 or previous W-4s.

Federal

Support for 2020 Form 941
Support for 2020 Form 941 Schedule B

State Forms
None

State and Local Income Tax
Arkansas (AR SIT)
Massachusetts (MA SIT)
Minnesota (MN SIT)
Rhode Island (RI SIT)

SUTA Wage Base (Maximum taxable earnings)
State                2020            2019
None

February 1, 2020 Payroll Tax Update

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

If you are not ready to reconfigure your employees for 2020 W-4s, please click here to install the January 31, 2020 Payroll Tax Update which includes the state changes below and FIT for 2019 or previous W-4s.

Federal

Please scroll down to the January 16, 2020 Payroll Tax Update section or click here for instructions on reconfiguring employees. You will not be able to run After the fact payroll or do Employee Adjustments for 2019 once you install this Payroll Tax Update.

State Forms
Oklahoma Electronic Filing W-2s adjustment

State and Local Income Tax
California SDI
Illinois (IL SIT)
Oregon (OR SIT)
Maryland (MD CIT)
The following Maryland counties have new rates:

  • Anne Arundel County
  • Baltimore County
  • Dorchester County
  • Kent County
  • Nonresident
  • Washington County
  • Worcester County

New Mexico (NM SIT) - New Mexico has added an additional filing status for Head of Household. You may need to reconfigure employees that have selected this filing status on their W-4.

In addition to this change, New Mexico withholding will no longer be reduced by the number of allowances claimed. No action is required for this change as the new calculation will exclude whatever number is currently entered in the 'Allowances claimed' box. If you would like more information about this, please visit the New Mexico Taxation and Revenue Department website.

January 1, 2020 Payroll Tax Update

Federal
Support for 2019 Federal Form 940
Support for 2019 Federal Form 940 Schedule A
Federal Wage Base increases to $137,700 for 2020

State Forms
None

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

SUTA Wage Base (Maximum taxable earnings)
State                2020            2019
AR SUTA             7,000           10,000
IA SUTA            31,600           30,600
KY SUTA            10,800           10,500
LA SUTA             7,700            7,700
MN SUTA            35,000           34,000
MO SUTA            11,500           12,000
MT SUTA            34,100           33,000
NJ SUTA            35,300           34,400
NM SUTA            25,800           24,800
NV SUTA            32,500           31,200
NY SUTA            11,600           11,400
OH SUTA             9,000            9,500
OK SUTA            18,700           18,100
OR SUTA            42,100           40,600
UT SUTA            36,600           35,300
VT SUTA            16,100           15,600
WA SUTA            52,700           49,800
WY SUTA            26,400           25,400