Hi KristinB.

How is the adjusted gross wrong?    Do you have a manual formula or are you using the sage formula?  If you have created your own in user maintained, Sage 50 will look there first.    I can remote in and look at this for you but we do charge for our time.

Check withholdings for Section 125 deductions are exempt from income tax.  Paychecks all calculated correctly, but on the quarterly return it did not reduce the taxable income on SOME of the employees.  Multiple employees have the same deduction but only a portion of them are incorrect on the quarterly return.   We have moved our payroll to an outside vendor so it's a non issue going forward.  I am even more disturbed that Sage has STILL not updated the tax tables for a change that went into effect January 1, 2020.  

Check withholdings for Section 125 deductions are exempt from income tax.  Paychecks all calculated correctly, but on the quarterly return it did not reduce the taxable income on SOME of the employees.  Multiple employees have the same deduction but only a portion of them are incorrect on the quarterly return.   We have moved our payroll to an outside vendor so it's a non issue going forward.  I am even more disturbed that Sage has STILL not updated the tax tables for a change that went into effect January 1, 2020.  

Did you set it in the defaults?  Also for the state and federal taxes on employees where applicable, you would have to click on the memo and tell it to exclude the 125 deduction in the calculation.

I had a tax release in January and in July.  I don't think there was an issue with the payroll, it is just not set up correctly in your system.

Are you in New Mexico?  I've had plenty of payroll updates but none of them were for NM.

This is one of the charts for this year.  (married)

This is the chart for 2019  (married)

The tax tables are updated.  Your payroll was not set up correctly.

I am in West Virginia but serve the entire US and we work with client is over 50 Countries around the world.

That is exactly how mine is set up.  

Then it was up to date.

All I know is that when we moved our payroll to an outside vendor, the State income taxes withheld increased for all our employees that were not marked in Sage as using the new W-4.   Some saw an increase of almost double the taxes they had been paying.   When I questioned it, they showed me the new tax tables that were supposed to go into effect in January, regardless of whether the employee had submitted the new W-4 or not.  I manually calculated taxes on a couple of employees and was able to verify that the new vendor was correct - Sage had not been calculating correctly.