Note: It is suggested to create new employee IDs that are salary instead of switching during the middle of the payroll year. Employee records can be combined using the W-2 wizard at the end of the year for W-2 purposes.

Section I: Create a new employee record

1. Open Sage 50—U.S. Edition and your company
2. Select Maintain, and then select Employees/Sales Reps
3. Enter the original Employee ID but add the number "2" to the end
4. Fill out the employee record and select Salary as Pay Method under the Pay Info tab
5. Click Save

Section II: Notes and Tips

• You will need to clear the Use Defaults box for FUTA for the record the employee uses the least
• At the end of the year, you will need to manually adjust the 940 Tax Form
• You will have to manually check the Taxable Gross Wages if this employee makes over the FICA limit amount
• If the combined total of both employee records exceeds these limits, there will be additional taxes taken out of their paycheck (and the company) that are in error