2023 Federal Withholding Tax Bracket tables not updated for 2023. Values in 2023 match 2022.

Looks like the 2023 Federal Withholding Tax Bracket tables in Sage 50 have not been updated for 2023.

The 2023 Federal Withholding Tax Bracket tables match 2022.

Verification of Federal Withholding paycheck calculations for 2023 was not matching online calculators.

www.paycheckcity.com payroll calculator

https://www.surepayroll.com/resources/calculator/payroll/paycheck-calculator payroll calculator

  • 0

    Thank you for bringing this up.  I noticed that the net pay for employees for 2023 is exactly as 2022.

  • 0

    To fix the problem.  I deleted out the paychecks that I did a test run for a payroll date of 01/05/2023.  You have to do this because they won't recalculate after you make the below changes.

    Go to Payroll Formulas - Sage Maintained - for our situation I went to FIT M2 for year 2022 and FIT M3 for year 2023, these are the calculations for Federal Income Tax (FIT) married, and compared the Tax Bracket tables.  They were both the same.

    Download the .pdf files for IRS publication 15-T, Federal Income Tax Withholding Methods, for both 2022 and 2023.

    Depending how the W4's were set up in your Sage software, you have to scroll down to the appropriate tables under Manual Payroll Systems for Percentage Method Tables for Manual Payroll Systems With Forms W-4, Annual Payroll Period.

    Using the 2023 data from IRS publication 15-T, I manually updated the Tax bracket tables under the Set Up Tax Brackets button.

    Reran payroll in Sage 50 and compared it to the above online payroll calculators.  Everything matched up 1 to 1.

    I also ran into another paycheck that was calculating incorrectly for 2023 Illinois State Income Tax (ILSIT).  Again Sage 50 was not updated for 2023, it used the same calculation as 2022.  Manually adjusted the 2023 formula that was incorrect.

    Verification for the formula for Illinois State Income Tax was done by downloading the .pdf for Illinois.

    Best advice I can give is always and I mean always confirm Sage 50 payroll calculations for the 1st payroll of the year with the online payroll calculators.  I use two (2) different online payroll calculators because I have seen problems between online payroll calculations being incorrect.  Trust but verify by making sure two (2) different sources balance to Sage 50.  This is the triple check.

  • 0 in reply to JFD60563

    I so appreciate you taking the time to give us these detailed instructions, but I honestly don't feel comfortable manually adjusting these calculations.  I'm trying to get through to tech support at Sage with no luck so far.

  • +1

    Hello @JFD60563 and @unitedservo, 

    Please note that certain federal and state taxes were not finalized in time for the release of our first tax update. A second tax update will be issued in the near future that will update with the final tables and withholding amounts for 2023.

    Best regards, 


  • 0 in reply to Michelle Lopez

    Thank you, Michelle.  

  • 0 in reply to Michelle Lopez

    It the same scenario for 2024? I have the update but there was not a change for any of our employees.