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I don't know if I can help, but what does "not calculating properly mean"?  Can you be more specific?

The federal taxes are calculating lower compared to the report I have received from ADP.

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Yeah, I don't know.  Did you download and update your taxes?  That's my only guess.  Hopefully someone else can chime in.

Did you update the tax table in Payroll after updating?  Tools > Download Taxes

To verify, Setup > Taxes > Tax Rates > FWH - The Effective Date should say 1/1/2020.

Yes, the effective date is correct for FWH.

The only other thing I can suggest is checking the FWH setup for the employee and match it against what ADP has.  It should be close, but I have seen more than not, 2 payroll systems not matching for FWH / SWH.  I generally suggest to my clients that they have their payroll company use the taxes calculated by Timberline (Sage 300CRE), then you don't need to adjust the checks once you get the Check Register.  If memory serves, ADP has problems doing this with certain service levels.  But's its been awhile since I've worked directly with ADP.

John McLagan
Consultant
Johnny on the Spot

Hi ChadD,

We have had a few reports of this, so to know for sure we would need to know specifically how ADP is arriving at their tax number.

In Sage, FWH calculates using an annualization process. For example:

• Taxable wages (after pretax deductions) is 900.00
• They are paid weekly
• They are not using the new W-4 amounts.
• Filing status is Single, 0 exemptions:

Annualizing the wages(900.00*52 weeks) would make the annual wages 46,800.

The FWH Table taxes amounts over 43,925 at 22% and adds on 4617.50. 46,800-43925=2875.00

2875.00 * .22 = 632.50.

632.50 + 4617.50 = 5250.00

5250.00 / 52 = 100.96

You can validate this in Payroll by going to Tools, Tax Calculator:

You would want to compare each part of this process to what ADP is doing - confirming the Taxable wages, Filing status, exemptions, and pay frequency.

Hewre are some links from our knowledgebase that talk about this:

https://support.na.sage.com/selfservice/viewdocument.do?noCount=true&externalId=64207

https://support.na.sage.com/selfservice/viewdocument.do?noCount=true&externalId=30145

Thanks!

I'm having an issue where I get different Fed tax amounts if i use Tasks > Process Payroll vs Tasks > Enter Checks and process there.  In comparing to other check calculators, it appears the Process Payroll task uses the 2020 W4 even when the box in the employee profile is not checked.  The Process from Enter Checks calculates a higher tax and appears to use the 2019 W4 setup when the "use W4" box is not checked (as I believe is intended).

We are having the same FWH issue.  We have been using ADP and Timberline payroll for years.  We have never had any discrepancies in FWH until we started processing 2020 PR.  We have installed all revelant PR updates along with the 2020 tax update.

My Calculate Taxes does not have all the boxes you show above since the advent of the "Use W-4 Amounts" changes.

Since there is nowhere to input Taxable wages, the Calculate Taxes box never ungreys.

Hi Kaysong,

Here is what the calculation would look like on the new window - note the taxable is on the left:

Thanks!

I think it might be an ADP issue

I see that but I'm wondering why my system isn't showing it! It's not a huge deal but weird. I guess I need to call Sage and see what the issue is with our system.

Thanks!

Sorry, I see where I was going wrong now. The taxable is just in a different spot. It would have bit me if it was a snake!

Thank you!

Check to see what version of 18.4.1 you have installed. There was an issue with the calculation of the FWH with the initial release of 18.4.1, so if you have not installed the Updates then this may be why you are seeing a problem where the amounts don't calculate the same in Enter checks as compared to Process Payroll (and/or the tax calculator)  KB 102299 outlines how to review the install version history. 

This is what it calculates using the Tax Calculator.

But, when I calculate using Enter Checks, I get 209.02 for the FWH. The other amounts are the same. So, the Enter Checks task is not calculating the taxes correctly for the new W-4.

Hi Kaysong,

If you have installed the lastest update (18.4.1) and the 2020 tax tables, it should be working properly.

Here is what I get when I test your numbers:

Employee status:

Processed in Process Payroll

Processed in Enter Checks:

Tax Calculator:

If yours is still different you may want to contact Support so we can look at it more closely.

I'm pretty sure we are missing Update 2. I'm having my IT guys look into it. If we do have Update 2 installed, I'll call Sage Support.

Thank you!