Linda-

Did you install the year end tax update that was sent out towards the end of December?

I did not get any up dated, our IT guy had to get it from your website for the 19.2.  Thanks

I did not get any up dated, our IT guy had to get it from your website for the 19.2.  Thanks

Linda- so you are set now?

Magnumco1- you can run the year end tax update after you are done processing payroll for 2013.

Yes, I just wanted to be sure the updates were included.  

Also the credit on line 4 of our 940 form -

The version that includes the updated tax tables is 19.2.180.0  US payroll tax tax file release 1/1/14.  But remember that is only the federal and state tax tables.  You have to manually update the rates and maximums for SSI, SDI, etc.  Not only do you have to change the rate at menu 5-3-1 and save it, but you also have to recall the PR calc, and go to options, update, all employees to get those rates updated on the employees records at 5-2-1, since that is where the system looks to process taxes.

As for the 940 credit, what state are you in?  The 940 is the annual reconciliation for the FUTA and its rate used to typically be .8% of the first $7000.  SUTA is also on the first $7000, but its full rate is 6.2%.  But most states used to get a credit towards their SUTA rate because they paid into federal.  But when the economy tanked, many states defaulted on their loans to the federal govt.  So for 2012 the feds took back the credit from the employers (since they couldn't get it from the state) and everyone owed almost double the FUTA rate that year.  If you're seeing a credit this year, it may be because you kept accruing at the higher rate.  I haven't read anything from the IRS about it yet, but I'm sure something will get posted.

I'm running it now on our data and a pop up says "Credit Reduction and Multi-state employes must complete the Schedule A".  Did you get that warning?

Looks like the Feds are taking a reduction of the credit again this year.  Refer to page 3 of the 940 for the values for each state.