We are excited to announce that two new payroll tax updates are available to download for Sage 300. 

Sage 300 Canadian Payroll Tax Update Q2 2025

This update includes:

• federal, provincial and territorial tax changes.
• two product enhancements. 

Sage 300 US Payroll Tax Update Q2 2025

This update includes:

• state and local tax updates.
• several enhancements such as child support payments, which can now be generated electronically in Kansas, North Carolina and Washington.
• several program fixes. 

To download the update:

1. Click the link below to download and install the applicable update:

• Download Sage 300 Canadian Payroll Tax Update Q2 2025 
• Download Sage 300 US Payroll Tax Update Q2 2025 

2. If you are prompted to log in, enter your Customer Portal Username and Password, then click Log In.

Important notes:

• If you have trouble downloading the links, clear your cache and cookies, use incognito mode in your browser, or try using an alternative web browser.
• To use this product update, you must have Sage 300 Canada and/or US Payroll 8.0, which is supported in Sage 300 2025, 2024 Product Update (PU)3, 2023 PU7, and 2022 PU8.
• If running Sage 300 2025 and Payroll Web Screens, Sage 300 2025 PU1 is required. If Canadian and US Payroll are installed, you must install the same Payroll Tax Update; otherwise, you will not be able to log in to Sage 300 Web Screens. 
• Sage 2022 will no longer be supported following this tax update. Please reach out to your Business Partner for your upgrade options.
• The product documentation URL for Sage 300 has changed to https://docs.sage.com/docs/en/customer/300erp/Documentation.htm.  

We highly recommend that all users update to the latest version to take advantage of the improvements. 

What’s New

 Sage 300 Canadian Payroll Tax Update Q2 2025 

This release includes: 

Canadian Federal Tax Updates

• The lowest federal income tax rate has been reduced from 15% to 14%, effective July 1, 2025.
• A prorated full-year rate of 14.5% will apply for 2025, with the 14% rate in effect for the second half of the year. 

Canadian Provincial and Territorial Tax Updates

• Alberta: A new 8% tax rate applies to the first $60,000 of taxable income. A prorated 6% rate will apply from July 1, 2025. The Alberta Supplemental Tax Credit and a new K5P factor have been introduced.
• Manitoba: The Manitoba Basic Personal Amount (BPA) has been adjusted to a prorated $15,591 for the second half of 2025 due to non-indexation.
• Nova Scotia: The BPA is now set at $11,744 regardless of taxable income. Employers may apply a prorated calculation for employees who received a lower amount earlier in the year.
• Prince Edward Island: The BPA has increased to $14,650 effective January 1, 2025, with a prorated amount of $15,050 applicable from July 1.
• Saskatchewan: The BPA has increased to $19,491, with a prorated amount of $19,991 for the second half of the year. 

Product Enhancements

• Sage HR Integration: If you are using Sage HR Integration, a newer version is now available and should be installed after the Q2 tax updates to ensure continued functionality.
• New Payroll Web Screen: A new screen has been added—Payroll Employees: Assign Selection Lists to Employees. 

Please review the Sage 300 Canadian Payroll Tax Update Q2 2025 Release Notes for details.

Sage 300 US Payroll Tax Update Q2 2025 

This release includes: 

US State and Local Tax Updates

• Alabama: Reinstated state income tax on overtime pay for non-exempt employees, effective July 1, 2025.
• Georgia, Idaho, Utah: Updated withholding tables and supplemental wage rates for 2025.
• Kentucky, Ohio, Pennsylvania: Added or updated local tax codes and rates.
• Oregon: Adjusted Eugene Community Safety Payroll Tax exemption and minimum wage thresholds; eliminated the 0.3% middle-tier tax rate. 

Product Enhancements and Program Fixes

• Puerto Rico Income Tax (PRSIT): Applies taxes to employees earning under $20,000.
• W-2 Forms: Resolved performance issues during printing.
• NJ-927 Reports: Corrected display of Employee Family Leave Rate.
• Sage HR Integration: If you are using Sage HR Integration, a newer version is now available and should be installed after the Q2 tax updates to ensure continued functionality.
• Child Support EFT: Added support for electronic payments in Kansas, North Carolina, and Washington.
• Indiana Local Taxes: Aligned exemption handling state income tax (INSIT) rather than local tax forms.
• Field Expansion: Increased character limits from 15 to 17 for Tax Number and Reporting ID fields. 

Please review the Sage 300 US Payroll Tax Update Q2 2025 Release Notes for details. 

Thank you for being a part of the Sage 300 community. If you have any questions or need assistance with the update, please start a discussion in the Sage 300 General Discussion forum in Community Hub.

Need help?

Visit www.Sage.com/Resources for options, including links to Sage Knowledgebase, Community Hub, Sage University, as well as Chat and Online Case submission.