What's New

You can learn more about what’s changed this year end by viewing the What’s New for Year-end 2021 (video).

Federal Tax Changes

1. Federal Income Tax Withholding 
   The 2022 withholding tax tables have changed.  As a result of changes to the W-4 form beginning with the 2020 calendar year, revised filing statuses are available, as well as the 2019 and older filing statuses for those employees that have not revised their existing withholding elections.
   Review Payroll tax year 2020 W-4s for additional information.
2. Social Security Wage Base
   The 2022 social security wage base increased to $147,000.

State and Local Tax Changes

1. California Disability Insurance
   The 2022 wage limit and maximum withholding changed.
2. Colorado State Income Tax
   Withholding changes supporting form DR0004.
3. Connecticut Paid Family Leave
   The wage base has changed.
4. Georgia State Income Tax
   Standard deductions and Personal Allowance changes.
5. Hawaii Temporary Disability Insurance
   The wage base has changed.
6. Iowa State Income Tax
   Withholding tables and formula changes.
7. Massachusetts Paid Family Leave
   Wage base and contribution rate changes.
8. Michigan State Income Tax
   Withholding rate and personal exemption amount changes.
9. Missouri State Income Tax
   Withholding table and standard deduction changes.
10. Nebraska State Income Tax
    Withholding allowance and table changes.
11. New Jersey State Disability Insurance, Unemployment Insurance and Family Leave Insurance, State Income Tax
    Taxable wage base and rate changes.
    For more information, see Sage Knowledgebase article: NJ paid family leave setup instructions for 2022.
12. New Mexico State Income Tax
    Withholding tables changed.
13. New York Paid Family Leave
    The weekly wage base limit and rate changed.
14. New York State Income Tax
    Withholding tables changed.
15. New York Yonkers Local Income Tax
    Withholding tables changed.
16. Oklahoma State Income Tax
    Withholding tables changed.
17. Oregon State Income Tax
    Withholding tables changed.
18. Rhode Island State Income Tax
    Withholding exemption limit changed.
19. South Carolina State Income Tax
    Personal Allowance, Standard Deduction and Withholding Tables changed.
20. Washington Paid Family Leave
    The wage base limit changed.
21. Washington Cares Fund – Long Term Care Act
    Added support for the WA Cares Fund.
    For more information, see Sage Knowledgebase article: Washington state long-term care tax setup instructions.
22. Wisconsin State Income Tax
    Withholding tables changed.

For additional information, see Sage Knowledgebase article: January 2022 Tax Update Bulletin.

Making Sure Your Tax Update is Applied

This update will be sent to you automatically through your product. The version for this tax update is 20220101 or 20220102 for release 2021, and 20220102 for release 2022. Follow these steps to make sure that your tax update was applied:

1. Open your Sage 50 company
2. Select Help > About Sage 50 Accounting
3. Confirm that the installed Tax Update version number matches the version number listed above
4. If your Installed Tax Update version number does not match:
   1. Select Services> Check for Updates > Check Now
   2. If multiple updates appear, select the update(s) you want to install, then select Download
   3. After the download is finished, exit Sage 50 and the update will begin

Need help closing the year?

Visit Sage.com/Resources for options, including links to Sage Year-end Center, Sage Knowledgebase, Sage City, and Sage University, as well as Sage Q&A Live, Chat and Online Case submission.

Questions? To start (or join) a discussion about this topic, please visit the Sage 50 discussion forums.