We are excited to announce that a new payroll tax update for Sage 50—U.S. Edition version 2024.0 and 2024.0.1 is available starting on December 17, 2024. This update includes Federal, State and Local Tax changes.
Download and install
When you shut down your software, you will be notified that an update is ready to install once it is automatically sent to you. The version for this tax update is 20250101. Follow these steps to make sure your payroll tax update has been applied:
- Open your Sage 50 company.
- Select Help > About Sage 50 Accounting.
- Confirm that the installed Tax Update version number matches version number 20250101.
If you are not automatically prompted to install this update, see Sage Knowledgebase article How to install payroll updates.
What's New
Federal Tax changes:
- Federal Income Tax (FIT) Withholding
Important! The 1st January 2025 payroll tax update includes draft changes for the FIT withholding, finalized changes will be included in the 2nd January 2025 payroll tax update anticipated for release in mid-January.
- Social Security Wage Base
The 2025 social security wage base increased to $176,100.
State and Local Tax changes:
- California Disability Insurance
- California State Income Tax
- Colorado Family and Medical Leave Insurance
- Colorado State Income Tax
- Connecticut Paid Family Leave
- Delaware Paid Family and Medical Leave
- Hawaii State Income Tax
- Hawaii Temporary Disability Insurance
- Iowa State Income Tax
- Kentucky State Income Tax
- Massachusetts Paid Family and Medical Leave
- Massachusetts State Income Tax
- Maine Paid Family and Medical Leave
- Maine State Income Tax
- Michigan State Income Tax
- Minnesota State Income Tax
- Mississippi State Income Tax
- Missouri State Income Tax
- Nebraska State Income Tax
- New Jersey State Disability Insurance
- New Jersey Family Leave Insurance
- New Mexico State Income Tax
- Oregon Paid Family Leave
- Rhode Island State Income Tax
- South Carolina State Income Tax
- Washington Paid Family Leave
- West Virginia State Income Tax
The following states also had changes to state unemployment wage limits: Alaska, Colorada, Connecticut, Delaware, Hawaii, Illinois, Iowa, Kentucky, Missouri, Montana, Nevada, New Jersey, New Mexico, New York, North Dakota, Oklahoma, Oregon, Utah, Vermont, Washington, West Virginia, Wyoming.
For additional information, see Sage Knowledgebase article 1st January 2025 Tax Update Bulletin.
Thank you for being a part of the Sage 50 community. If you have any questions or need assistance with the update, please start a discussion in the Sage 50 US General Discussion forum in Community Hub.
Need help closing the year?
Visit Sage.com/Resources for options, including links to Sage Year-end Center, Sage Knowledgebase, Community Hub, Sage University, and Chat.