Louisiana State Withholding miscalculating

Question

We recently upgraded from Sage 2016 to 2019. The state withholding is now miscalculating. I reached out to Sage and opened a case. They took over my computer and tried different things and compared it to tax calculations on paycheckcity.com and it proved that state withholding was miscalculating. Sage then tried a test on their system and it was showing it was miscalculating. They then told me they would need to transfer to another department to check into this issue. I am now being told that my case is closed and that I need to prove to them that it's miscalculating, they don't need to prove to me it's correct. This issue was never resolved and they are closing the case on me. I am not happy with Sage. Are any of you having issues with state withholding miscalculating?

Mitch Jagosz · Accepted Answer

ELH, I believe you have been contacted by a member of our support team, but for the benefit of those who read this post, 
 We believe this is a matter of choosing the correct filing status. If you used the filing status in legacy Payroll of M1 (Married 0-1 Exemptions) it probably converted to the Filing Status M (Married) in the new Payroll, which gave you the $21.21 result. But in order for the taxes to calculate for 0 exemptions, you need to use the filing status 01 No Personal Exemption in the new Payroll. Changing the Filing Status you get the expected results of $24.92. 
 The LA tables are based on the number of exemptions.

Linda KR · Answer

Thanks ELH. I will write up a kb for the way to map for Louisiana and explain the differences of legacy to Framework.

Linda KR · Answer

Lonnie, I am sorry but I have not completed that knowledge article. We are still reviewing this conversion process. 
 The prior filing status from legacy were not available choices when converting to the new PR 2.x. When you converted, M1 & S1 (0-1 Exemptions) should have selected filing status 01 in the new PR. Instead most selected M for M1 & M2 and S for S1 & S2 (as I would have thought also). So anyone that was M1 or S1 in the legacy payroll will most likely work best with the 01 filing status. Anyone that was M2 or S2 should use M or S and enter the deductions appropriate based on their W4. 
 *****The IRS has also revised the W4 form and is effective 1/1/2020 for new employees or anyone that wants to change their W4. In order to accommodate the changes to the NEW W4 you must upgrade to PR 2.20.0 (targeted to release mid-December around the 19th). 
 These settings worked for all of ELH posts for all filing statuses. We did not have any HOH filing status in Federal or LA state filing statuses. I would suggest you ask your accountant or follow instructions on the W4 worksheet to determine the best selections for that employee.

Linda KR · Answer

Lonnie, 
 As I said earlier, we are still reviewing this which is why the article has not been published yet. We know that for many states in legacy the Personal Exemption & Dependent Exemptions were used incorrectly. We had the issue in California on some as well. This may be a moot point after fully implementing the New W4s effective 1/1/2020 for new employees and existing that want to change their W4. Saying that is atleast for Federal as many states do not use the Federal W4. Eventually we will no longer have the personal and dependent fields with the NEW W4 which is not yet released but there is a draft form on the irs.gov website. 
 Thanks for the feedback and I will look into this. If it was actually incorrect in legacy there will not be any changes made as the last Tax Table Update is for 2020q1 and changing the fields in legacy would require program changes which ended some time ago. 
 Linda

Sage 100

Louisiana State Withholding miscalculating

Top Replies

COMMUNITY

COMPANY

PARTNERS

SUPPORT & TRAINING