Sage Abra Suite Payroll
v9.1
Q4 2013 Release Notes
This is a publication of Sage Software, Inc.
Document version: December 30, 2013
Copyright © 2013. Sage Software, Inc. All rights reserved. Sage, the Sage logos, and the Sage product and
service names mentioned herein are registered trademarks or trademarks of Sage Software, Inc. or its
affiliated entities. All other trademarks are the property of their respective owners. Your use of this document
and the Sage product(s) described herein is governed by the terms and conditions of the Sage End User
License Agreement ("EULA") or other agreement that is provided with or included in the Sage product. Nothing
in this document supplements, modifies or amends those terms and conditions. Except as expressly stated in
those terms and conditions, the information in this document is provided by Sage "AS IS" and Sage disclaims
all express, implied or statutory warranties of any kind, including but not limited to the warranties of
merchantability, fitness for a particular purpose or of non-infringement. No implied license is granted to you
under any Sage intellectual property or trade secret right. Sage reserves the right to revise, supplement or
remove information in this document at any time without notice to you or others.
Sage End User License: http://na.sage.com/sage-na/eula
Release Notes
Product: Sage Abra Suite Payroll 9.1
Version: Product Update Q4 2013
Intended Audience
It is important that all customers who update, maintain, and use Sage Abra Suite Payroll or Sage Employee
Self Service (U.S. versions), read these release notes to obtain valuable information about changes to the
software programs and payroll legislative database.
Before You Begin
Before installing this Product Update, back up your Sage Abra Suite 9.1 data. Read this document in its
entirety before you install the update.
Important!
You cannot install the quarterly update while you are in Trial Quarter Close. You should never install
a quarterly update if Trial Quarter Close has already been run. You must install this Q4 2013 Product Update
before you run Trial Quarter Close for the current payroll quarter.
If you have already run the Trial Quarter Close, you must restore the external backup you made prior to the
Trial Quarter Close, install the Q4 2013 Update, and rerun the Trial Quarter Close.
As a reminder, the Trial Quarter Close can be processed in two ways: you can run it manually (Processes >
Payroll > Run Trial Quarter Close), or it is run automatically when you run the first payroll that has a
check date in the next quarter.
See the Installation Instructions in this document for more information.
Important update information for our customers
Sage Abra Suite product updates are cumulative, back to the release date of the version. Even if you have
omitted any previous updates or hot fixes for the version you have installed, this Q4 2013 update will bring
your Sage Abra Suite environment up to date.
Support and Documentation
Sage strives to provide you with the very best support in the industry. If you have a question, we provide the
following methods for you to get your answer as soon as possible:
l
Refer to the Help menu in Sage Abra Suite for assistance. To access Help, select Contents from
the Help menu within Sage Abra Suite and use the Table of Contents, Index, and Search function to
find what you need. You can also click
using.
or press F1 to open Help for the function you are currently
Sage Abra Suite Payroll Q4 2013 Release Notes 3
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Log on to the Sage Customer Portal at: https://customers.sagenorthamerica.com
o
Search for solutions to common problems
o
Download product updates
o
Read technical information
o
Open a technical support case
o
Create a service request
o
Grant your channel partner permission to view your support tickets
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Chat with a support analyst using Sage Live Chat, Monday through Friday from 9:00 A.M. to 5:00 P.M.
Eastern Time at: http://kb.sagesoftwareonline.com/app/chat/chat_launch
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Call Sage Abra Suite Support, Monday through Friday from 8:00 A.M. to 8:00 P.M. Eastern Time at 1800-829-0170 in the U.S. or 1-800-330-2607 from Canada. Please have your Customer ID handy when
contacting Support.
4 Sage Abra Suite Payroll Q4 2013 Release Notes
Table of Contents
Before You Begin
3
Important update information for our customers
3
Support and Documentation
3
Tax Updates
8
Federal Legislative Updates
8
Federal Withholding Tables for 2014
8
Federal Standard Deduction Changes for 2014
8
Social Security Taxable Wage Base
8
Railroad Employees Withholding
8
Forms W-2 and W-3 for Tax Year 2013
9
Form 940 for Tax Year 2013
9
Form 940, Schedule A for Tax Year 2013
9
Form 1096 for Tax Year 2013
10
Form 1099-Misc for Tax Year 2013
10
Form 1099-R for Tax Year 2013
10
1099 Electronic File Changes for Tax Year 2013
11
Empower Tax Filing Service Year End Print Service W-2 File Format
11
Deferred Compensation Limits for 2014
11
Federal Record Updates to State W-2s
12
State and Local Legislative Updates
13
Alaska
13
Arizona
13
California
13
Colorado
13
Connecticut
13
District of Columbia
14
Delaware
14
Florida
14
Hawaii
14
Idaho
14
Illinois
14
Indiana
15
Iowa
15
Sage Abra Suite Payroll Q4 2013 Release Notes 5
Kansas
15
Kentucky
16
Lousiana
17
Maine
17
Maryland
17
Massachusetts
18
Michigan
18
Minnesota
18
Montana
18
Nevada
18
New Hampshire
19
New Jersey
19
New Mexico
19
New York
19
North Carolina
20
North Dakota
20
Ohio
20
Oklahoma
23
Oregon
23
Pennsylvania
23
Rhode Island
24
South Carolina
24
South Dakota
24
Tennessee
24
Texas
24
Utah
24
Washington
25
West Virginia
25
Wyoming
25
Local Taxes
25
Tax Forms
25
Payroll Product Updates
26
W-4 Digital Signature
26
Voiding W-2s Message
26
6 Sage Abra Suite Payroll Q4 2013 Release Notes
Sage Abra Suite Installation Instructions
27
Sage Abra Suite Payroll Q4 2013 Release Notes 7
Tax Updates
Federal Legislative Updates
Federal Withholding Tables for 2014
The IRS has released the 2014 withholding tables with the following changes:
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The allowance amount for each exemption claimed is increased to $3950.
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The withholding table wage increments and tax amounts are adjusted for inflation.
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The adjustment for the nonresident alien is $2250.
Federal Standard Deduction Changes for 2014
The IRS has released the 2014 standard deduction and exemption amounts with the following changes:
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The personal allowance amount for each exemption claimed increases to $3,950.
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The standard deduction for Married Individuals Filing Joint Returns increases to $12,400.
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The standard deduction for Heads of Households increases to $9,100.
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The standard deduction for Unmarried Individuals increases to $6,200.
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The standard deduction for Married Individuals Filing Separate Returns increases to $6,200.
Social Security Taxable Wage Base
For 2014, the Social Security taxable wage base increases to $117,000 (from $113,700).
Railroad Employees Withholding
The U.S. Railroad Retirement Board announced the following changes to the Tier I & II and UI taxable wage
bases and tax rates for 2014:
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Maximum Taxable Railroad Earnings:
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The Tier I Earnings limit increases to $117,000.
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The Tier II Earnings Limit increases to $87,000.
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The HI Earnings Limit remains No Limit.
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Tier I Employee and employer tax rates for 2014 remain unchanged at 6.2% each.
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HI (Medicare) employer rate remains unchanged at 1.45%. The HI (Medicare) employee rate becomes
tiered due to the PPACA. Beginning in 2013, employees were withheld an additional 0.9% on earnings
above $200,000. Thus withholding for 0 to 200000 is at 1.45% and wages over 200,000 is at 2.35%.
Sage Abra Suite Payroll Q4 2013 Release Notes 8
There are no changes to this for 2014.
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Railroad Unemployment Insurance Act 2014 Monthly Compensation Base increases to $1,440.00.
Forms W-2 and W-3 for Tax Year 2013
The IRS has released forms W-2 and W-3 for tax year 2013 with no physical changes from 2012. The
following instructions are included on both forms for reference purposes:
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$2,500 limit on health flexible spending arrangement (FSA). For plan years beginning after
December 31, 2012, a cafeteria plan may not allow an employee to request salary reduction
contributions for a health FSA in excess of $2,500.
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Additional Medicare Tax. Beginning January 1, 2013, an employer is required to withhold a 0.9%
Additional Medicare Tax on any Federal Insurance Contributions Act (FICA) wages or Railroad
Retirement Act (RRTA) compensation it pays to an employee in excess of $200,000 in a calendar
year.
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An employer is required to begin withholding Additional Medicare Tax in the pay period in which
it pays wages or compensation in excess of $200,000 to an employee and continue to withhold
it until the end of the calendar year. Additional Medicare Tax is only imposed on the employee.
There is no employer share of Additional Medicare Tax. All wages and compensation that are
subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of
the $200,000 withholding threshold.
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Employee social security tax withholding. The rate of social security tax withholding (for
employees only) is restored to 6.2% for wage payments made beginning in 2013.
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New charts. To aide in reporting, a Form W-2 Box 13 Retirement Plan Checkbox Decision Chart and
a Nonqualified Deferred Compensation Reporting Examples Chart have been added to these
instructions.
Form 940 for Tax Year 2013
The IRS released and updated Form 940 for 2013 with the following changes:
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The address section now has new boxes for foreign country name, foreign province/county, and foreign
postal code
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Due to the addition of the new boxes, page 1 of the form is shifted downward on the page.
Form 940, Schedule A for Tax Year 2013
Federal Form 940, Schedule A has been changed for tax year 2013. Employers must fill out Schedule A if they
were required to pay their state unemployment tax in more than one state or if they paid wages in any state
that is subject to credit reduction. The table below lists the credit reduction states for 2013.
9 Sage Abra Suite Payroll Q4 2013 Release Notes
Arkansas
0.009
California
0.009
Connecticut
0.009
Delaware
0.006
Georgia
0.009
Indiana
0.012
Kentucky
0.009
Missouri
0.009
New York
0.009
North Carolina 0.009
Ohio
0.009
Rhode Island
0.009
Virgin Islands
0.012
Wisconsin
0.009
Form 1096 for Tax Year 2013
The IRS has released form 1096 for tax year 2013 with the following changes:
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The filer's box labels have been updated to include city or town, province or state, country, and ZIP or
foreign postal code.
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The check boxes for the 1099-MISC and 1099-R are repositioned from last year's form.
Form 1099-Misc for Tax Year 2013
The IRS has released the 1099-Misc form for tax year 2013. The following instructions are included on the
form:
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Truncating recipient’s identification number on paper payee statements. All filers of this form may
truncate a recipient’s identification number (social security number (SSN), individual taxpayer
identification number (ITIN), or adoption taxpayer identification number (ATIN)) on payee statements.
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Box 11 of the form is no longer grayed out. It is used to report foreign tax paid .
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Box 12 of the form is no longer grayed out. It is used to report foreign country or US possession.
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The Payer's box labels have been updated to include city or town, province or state, country, and ZIP
or foreign postal code.
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The Recipient's address box labels have been updated to include city or town, province or state,
country, and ZIP or foreign postal code.
Form 1099-R for Tax Year 2013
The IRS has released the 1099-R form for tax year 2013 with the following changes:
Sage Abra Suite Payroll Q4 2013 Release Notes 10
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Truncating recipient’s identification number on paper payee statements. All filers of this form may
truncate a recipient’s social security number (SSN), individual taxpayer identification number (ITIN), or
adoption taxpayer identification number (ATIN) on payee statements.
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The Payer's box labels have been updated to include city or town, province or state, country, and ZIP
or foreign postal code.
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The Recipient's address box labels have been updated to include city or town, province or state,
country, and ZIP or foreign postal code.
1099 Electronic File Changes for Tax Year 2013
The IRS has released publication 1220 for tax year 2013 reporting with the following changes:
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All Forms - Transmitter "T" Record, Payer "A" Record, and Payee "B" Record; Payment Year, Field
Positions 2-5,must be updated with the four-digit reporting year (2012 to 2013), unless reporting prior
year data.
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Form 4419, Application for Filing Information Returns Electronically (FIRE), is now available as a fill-in
form through the FIRE System located at https://fire.irs.gov.
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FIRE System is available from January 21, 2014, through December 12, 2014.
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FIRE Test System is available from November 12, 2013, through February 28, 2014.
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Combined Federal/State Filing program – additional participating states Michigan (code 26) Vermont
(code 50).
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Form 1099-MISC, Miscellaneous Income - Foreign tax paid has been added to the Payer "A" Record,
Field Position 28-43, Amount Code "9".
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Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit- Sharing Plans, IRAs,
Insurance Contracts, etc.
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Code "D", Record for Annuity payments from non-qualified annuity payments and distributions
from life insurance contracts that may be subject to tax under section 1411, has been added to
the Payee "B" Record, Field Positions 545-546, Distribution Code.
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Valid with codes 1,2,3,4 or 7.
Empower Tax Filing Service Year End Print Service W-2 File
Format
The file specs for reporting 2013 W-2 data have been released by Empower Tax Filing Service. The changes
for this year are as follows:
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A new Contact Name field (ERC_ContactName) has been added to the file creation process for the
W-2. This field is now required and captures the contact name of the W-2 preparer.
Deferred Compensation Limits for 2014
The IRS has announced the cost-of-living adjustments applicable to dollar limits on benefits and contributions
under qualified retirement plans and other items, for tax year 2014.
11 Sage Abra Suite Payroll Q4 2013 Release Notes
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The limit on the exclusion for elective deferrals under 401(k) and 403(b) plans remains unchanged at
$17,500.
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The limit on annual additions to defined contribution plans under 415(c) increases to $52,000.
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The limit on the annual benefit under a defined benefit plan contained in 415(b) increases to $210,000.
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The annual compensation limit under 401(a) and 404(l) increases to $260,000.
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The compensation amount under 408(p) regarding elective deferrals to SIMPLE retirement accounts
remains unchanged at $12,000.
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The deferred compensation limits for employer contributions for Simple Plan 408(p) increases to
$7,800.00. This applies to the employer contribution and the employer catch-up contribution limits.
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The limit concerning elective deferrals to deferred compensation plans of state and local governments
and tax-exempt organizations (457(b) plans) remains unchanged at $17,500.
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The limit concerning the definition of "key employee" in a top-heavy plan increases to $170,000 (from
$165,000).
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The limit for catch-up contributions to 401(k), 403(b), and 457(b) plans for individuals age 50 or over
remains unchanged at $5,500; the limit for catch-up contributions to an employer's SIMPLE plan for
individuals age 50 or over remains unchanged at $2,500.
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The limit used in the definition of "highly compensated employee" remains unchanged at $115,000.
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The dollar amount for determining the maximum account balance in an employee stock ownership plan
subject to a five-year distribution period increases to $1,050,000 (from $1,035,000), while the dollar
amount used to determine the lengthening of the five-year distribution period increases to $210,000
(from $205,000).
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The annual compensation limit for eligible participants in certain government 401(a) plans that allowed
cost-of-living adjustments to the compensation limit to be taken into account, increases to $385,000
(from $380,000).
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The compensation amount under 408(k) regarding simplified employee pensions (SEPs) remains
unchanged at $550.
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The compensation amount concerning the definition of "control employee" for fringe benefit purposes,
is increased to $105,000 (from $100,000). The compensation amount under 1.61-21(f)(5)(iii) is
increased to $210,000 (from $205,000).
Federal Record Updates to State W-2s
The electronic state W-2 file (EFW2) for states that align with the federal file have been updated for tax year
2013.The following states are affected: Alaska, Arizona, California, the District of Columbia, Delaware,
Florida, Hawaii, Idaho, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan,
Minnesota, Montana, North Carolina, North Dakota, New Hampshire, New Jersey, New Mexico, Nevada,
New York, Oklahoma, Ohio, Oregon, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington,
West Virginia, and Wyoming. To support the changes, the following fields have been added to Section 4.6 RE
Record -Employer Record:
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Employer Contact Name (positions 222-248)
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Employer Contact Phone Number (positions 249-263)
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Employer Contact Phone Extension (positions 264-268)
Sage Abra Suite Payroll Q4 2013 Release Notes 12
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Employer Contact Fax Number (positions 269-278)
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Employer Contact E-Mail/Internet (positions 279-318)
State and Local Legislative Updates
This section contains the state and local updates available with this release. If a state or locality is not listed in
this section, there are currently no tax updates or product modifications for that state or locality.
Alaska
The Unemployment Insurance wage base limit increases to $37,400, and the employee withholding rate will
decrease to 0.62% for 2014.
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Arizona
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
California
The California state disability insurance (SDI) withholding rate, which includes disability insurance (DI) and
paid family leave (PFL), remains 1.0% in the 2014 tax year. The 2014 taxable wage limit increases from
$100,880.00 to $101,636.00 per employee per calendar year. The maximum amount that can be withheld from
an employee's pay in 2014 is $1,016.36.
The California EDD updated the 2014 withholding schedules with updated amounts for the low income (table
1), the standard deduction (table 3), and exemption allowance (table 4) for 2014. The 2014 withholding tables
(table 5) have been updated for wage increments and tax amounts based on inflation.
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Colorado
The Unemployment Insurance wage base limit increases to $11,700 for 2014.
Connecticut
The 2014 withholding rules and tables for Connecticut have been published by the state with changes for the
13 Sage Abra Suite Payroll Q4 2013 Release Notes
Personal Exemptions and Personal Tax Credits for filing status F (single) only.
District of Columbia
The district EFW2 has been updated in accordance with the SSA specifications. See Federal Record
Updates to State W-2s for details of the formatting changes.
Delaware
l
The Unemployment Insurance wage base limit increases to $18,500 for 2014.
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Delaware has established a new tax rate of 6.60% (down from 6.75%) on personal income in excess of
$60,000 effective for wages paid in 2014.
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The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record
Updates to State W-2s for details of the formatting changes.
Florida
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Hawaii
The Hawaii Department of Labor is increasing the temporary disability insurance (TDI) maximum weekly
wage base from $921.78 to $940.05 for 2014. The maximum weekly deduction from employees' wages
increases from $4.61 to $4.70.
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Idaho
The Unemployment Insurance wage base limit increases to $35,200 for 2014.
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Illinois
The Unemployment Insurance wage base limit increases to $12,960 for 2014.
Sage Abra Suite Payroll Q4 2013 Release Notes 14
Indiana
l
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The following Indiana local county income tax rates have changed, effective October 1, 2013, as
described in the table below.
Tax
Code
Locality
New
Rate
INBT
Allen County Income Tax
1.35%
INDK
Allen County N/R Income Tax
0.6375%
INBZ
Hancock County Income Tax
1.65%
INCK
Hancock County N/R Income
Tax
0.45%
INAC
Jasper County Income Tax
2.964%
INFA
Madison County N/R Income
Tax
0.4375%
INAZ
Washington County Income Tax
2.0%
The Indiana Department of Revenue adopted a new local income tax for residents and non-residents
working in Lake County effective October 1, 2013. Originally the non-resident tax was posted with a
rate of 0.25% but this has since been updated to 0.5% in a publication from the state. The new tax
codes are:
Tax
Code
Locality
Rate
INFR
Lake County Income Tax
1.5%
INFS
Lake County N/R Income
Tax
0.5%
Iowa
The Unemployment Insurance wage base limit increases to $26,800 for 2014.
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Kansas
Kansas has issued new wage-bracket and percentage method withholding tables for wages paid on and after
January 1, 2014. The tables were revised due to tax reform legislation approved in 2012 (H.B. 2117) and 2013
(H.B. 2059). A summary of the 2014 changes follows:
15 Sage Abra Suite Payroll Q4 2013 Release Notes
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The withholding tables have been revised for tax rates and tax amounts for all filing statuses.
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The allowance amount for each exemption claimed remains unchanged at $2250.
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The supplemental withholding rate remains unchanged at 4.5%
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Kentucky
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Kentucky has released their 2014 withholding formula. The changes are as follows:
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Standard deduction increases to $2,400.
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Credit for each exemption claimed decreases to $10.
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The Unemployment Insurance wage base limit increases to $9,600 for 2014.
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The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record
Updates to State W-2s for details of the formatting changes.
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Several Kentucky localities use the Social Security wage limit as a cap for their license fee. As the
Social Security wage limit for 2014 increased to $117,000, the capped wages in the rate tables for the
following Kentucky localities have also been updated:
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Code
Description
KYHI
Alexandria City License Fee
KYDA
Coldspring License Fee
KYE
Covington License Fee
KYBU
Crestview Hills License Fee
KYF
Florence License Fee
KYCV
Franklin License Fee
KYCO
Jackson License Fee
KYG
Kenton County License Fee
KYAI
Newport License Fee
KY(6
Simpson County License Fee
Fort Wright, Kentucky adopted the Social Security wage base as of January 1, 2013. The occupational
tax for Fort Wright was imposed on all subject wages and the tax is collected by Kenton County. The
Social Security wage base for 2013 is $113,700. The affected tax code follows:
Effective Date Code
1/1/2013
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KYW
Description
Rate
Fort Wright License Fee 1.15%
The Boone County, Kentucky ordinance tax (KYC Boone County License Fee, and KYM Boone
County License Fee) maximum wage base is increased to $57,482 for wages paid on or after January
Sage Abra Suite Payroll Q4 2013 Release Notes 16
1, 2014. The rate remains unchanged at 0.8%. The maximum tax to be withheld for 2014 is increased
to $459.86 per employee.
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The city council for Whitesburg, Kentucky (located in Letcher County) adopted a new occupational
payroll tax of 1.5% on all wages, effective October 1, 2013 for persons working in the city. There are no
wage limits imposed for this tax (either minimum or maximum). The new tax code is KYZL Whitesburg
License Fee.
Lousiana
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Maine
Maine Revenue Services has changed withholding requirements for wages paid on or after January 1, 2014.
Major changes include the following:
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Withholding tables are updated for wage increments and tax amounts based on inflation.
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The withholding adjustment for nonresident aliens, similar to the wage adjustment step in the federal
withholding calculation, increases to $6200.
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The personal exemption amount increases to $3,950.
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Maryland
The state of Maryland will not be issuing new wage-bracket and percentage withholding tables for wages paid
on and after January 1, 2014. Caroline, Carroll, and Charles counties will use different withholding tables than
the tables that are currently being used due to county-specific changes in income tax rates effective January
1, 2014 as follows:
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Caroline county employers will use the 2.80% withholding tables (currently, 2.65%). Employers are
required to refer to the actual county tax rate, then use the withholding table that agrees with, or is
closest to, without going below the actual local tax rate. Caroline county’s actual tax rate will be
2.73%.
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Carroll county employers will continue using the 3.05% withholding tables even though their actual tax
rate will be changing to 3.04% for 2014.
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Charles county employers will use the 3.05% tables (currently, 2.90%). Charles actual tax rate will be
changing to 3.03% for 2014.
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
17 Sage Abra Suite Payroll Q4 2013 Release Notes
Massachusetts
Massachusetts has implemented an employer medical assistance contribution program effective January 1,
2014 with the following details:
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Michigan
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Minnesota
Minnesota has released the 2014 withholding tax instruction publication with the following changes:
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The withholding allowance increases to $3950 for each allowance claimed.
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The wage increments and tax amounts on the withholding tables have been updated based on inflation.
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The supplemental withholding rate remains unchanged at 6.25%.
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Montana
l
The Unemployment Insurance wage base limit increases to $29,000 for 2014.
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The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record
Updates to State W-2s for details of the formatting changes.
Nevada
The Unemployment Insurance wage base limit increases to $27,400 for 2014.
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Sage Abra Suite Payroll Q4 2013 Release Notes 18
New Hampshire
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
New Jersey
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The Unemployment Insurance wage base limit increases to $31,500 for 2014.
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The withholding rate for New Jersey Disability Insurance has increased to 0.38% on a taxable wage
base of $31,500, effective January 1, 2014.
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The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record
Updates to State W-2s for details of the formatting changes.
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New Jersey Division of Taxation has released the electronic file specifications for reporting of annual
W-2 data for tax year 2013 with changes to the RS record as follows:
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Positions 5-9 includes a new field for Test/Production Indicator to be populated with T for a test
file or P for a production file to support the New Jersey online file testing capability.
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Sage Abra Suite Payroll defaults the field to P. If you want to submit a test file, you must
manually change the field in the file to a T.
New Mexico
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The Unemployment Insurance wage base limit increases to $23,400 for 2014.
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New Mexico has released their 2014 withholding publication with an increase in the allowance amount
to $3950 for each exemption claimed. The withholding table wage increments have been updated
based on inflation. There is no change to the supplemental withholding rate of 4.9%.
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The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record
Updates to State W-2s for details of the formatting changes.
New York
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The Unemployment Insurance wage base limit increases to $10,300 for 2014.
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The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record
Updates to State W-2s for details of the formatting changes.
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New York state withholding publications for 2014 have been released with the following changes:
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The supplemental withholding rate remains unchanged at 9.62%
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The deduction allowances for single and married have been updated to $7,250 and $7,750,
respectively.
19 Sage Abra Suite Payroll Q4 2013 Release Notes
l
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The exemption allowance remains unchanged at $1,000 for each exemption claimed.
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The withholding table wage increments and tax amounts have been updated based on inflation.
Yonkers withholding publications for 2014 have been released with the following changes:
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The supplemental withholding rate for Yonkers (resident) remains unchanged at 1.443%.
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The deduction allowances for single and married have been updated to $7,250 and $7,750,
respectively.
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The exemption allowance remains unchanged at $1000 for each exemption claimed.
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The withholding table wage increments and tax amounts have been updated based on inflation.
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The annualized tax result is multiplied by 15% (hard coded in Sage Abra Suite Payroll). The 15%
multiplier is unchanged from 2013.
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There are no changes to Yonkers non-resident withholding.
North Carolina
l
The Unemployment Insurance wage base limit increases to $21,400 for 2014.
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The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record
Updates to State W-2s for details of the formatting changes.
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The Tax Simplification and Reduction Act of 2013 (HB 998) resulted in the multi-tiered income tax
regime to be replaced with a flat tax in North Caroline for 2014. The Act reduces rates and standard
deduction amounts as noted below:
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Supplemental withholding rate is decreased to 5.8%.
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Standard deduction amounts:
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l
Single, married, or qualifying widow(er) is $7,500.
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Head of household rate is now $12,000.
The allowance amount is $2,500 for each exemption claimed on NC-4.
North Dakota
The Unemployment Insurance wage base limit increases to $33,600 for 2014.
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Ohio
l
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record
Updates to State W-2s for details of the formatting changes.
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Based on local election results, the basis for the imposition of the income tax on Walnut Twp 2308
School District in Ohio was changed to earned income from the "traditional" basis, effective January 1,
Sage Abra Suite Payroll Q4 2013 Release Notes 20
2014. As a result of this change, no reductions or adjustments are given for personal exemptions for
wages reported with the Walnut Twp (Fairfax) LSD Tax (OH[F) code. The tax rate has also increased
from 1.25% to 1.75% as listed in the table below.
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Effective September 1, 2013 the Regional Income Tax Authority (RITA) became the tax collector for
the village of Sycamore in Ohio (OHWY Sycamore Local Tax).
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Effective October 1, 2013 the Regional Income Tax Authority (RITA) became the tax collector for
Hopedale, Ohio local income tax (OHNA Hopedale Local Tax).
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Mingo Junction village income tax (OHRD Mingo Junction Local Tax) rate change effective 7/1/2013
was originally erroneously listed by RITA as 1.98%. The tax rate has been corrected to 1.975%.
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Effective November 1, 2013 the Regional Income Tax Authority (RITA) became the tax collector for
Ohio villages of Bloomdale (OHSW Bloomdale Local Tax, OHA* Bloomdale N/R Local Tax) and
McDonald local income taxes (OHPY McDonald Local Tax, OH*V McDonald N/R Local Tax).
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The Ohio Department of Taxation has released specs for electronic filing of W-2 information for tax
year 2013. The changes are as follows:
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o
RA record: Contact Email, positions 446-485 (this is now a required field).
o
RS record: Taxing Entity Code, positions 5-9 and field instruction is "fill with blanks".
The following local Ohio taxes have increased:
21 Sage Abra Suite Payroll Q4 2013 Release Notes
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Effective
Date
Code
Description
New
Rate
1/1/2014
OHPH
Ada EVSD Local Tax
1.5%
1/1/2014
OHDW Barberton Local Tax
2.25%
1/1/2014
OH2D
Barberton N/R Local Tax
2.25%
1/1/2014
OHLQ
Bucyrus Local Tax
2.0%
1/1/2014
OH2I
Bucyrus N/R Local Tax
2.0%
1/1/2014
OHXO
Covington EVSD Local Tax
2.0%
1/1/2014
OHO2
Jackson Ctr SD (Shelby) Tax
1.5%
1/1/2014
OHES
Kent Local Tax
2.25%
1/1/2014
OHZJ
Kent N/R Local Tax
2.25%
1/1/2014
OHQQ
Macedonia Local Tax
2.25%
1/1/2014
OH(7
MK Nfld Ctr TP JEDD (Sumit)
OH
2.25%
1/1/2014
OHMQ Mansfield Local Tax
2.0%
1/1/2014
OHZO
Mansfield N/R Local Tax
2.0%
1/1/2013
OH&8
Painesville Cnrd JEDD (Lk) Tax
1.75%
1/1/2014
OHFD
Peninsula Local Tax
2.0%
1/1/2014
OHNM Shelby Local Tax
1.5%
1/1/2014
OHWS Spencerville Local Tax
1.5%
1/1/2014
OHIA
Twinsburg Local Tax
2.25%
1/1/2014
OHI*
Twinsburg N/R Local Tax
2.25%
1/1/2014
OH!E
Twin Valley LSD Local Tax
1.5%
1/1/2014
OH[F
Walnut Twp (Fairfax) LSD Tax
1.75%
1/1/2014
OHBO
West Carrollton Local Tax
2.25%
1/1/2014
OHLY
West Carrollton Local Tax
2.25%
1/1/2014
OHDI
Wooster Local Tax
1.5%
1/1/2014
OHQD
Wooster Local Tax
1.5%
1/1/2014
OHY
West Liberty-Salem LSD Tax
1.75%
New local taxes have been instituted (or are newly supported in Sage Abra Suite Payroll) for the
following counties, villages, and school districts:
Sage Abra Suite Payroll Q4 2013 Release Notes 22
Effective Date
Code
Description
Rate
1/1/2008
OH7W
Bluffton EVSD Local Tax
1/1/2014
OH7X
Cardington-Linc LSD Local Tax 0.75%
1/1/2014
OH7Y
Gibsonburg EVSD Local Tax
0.75%
1/1/2014
OH8C
Gratis Local Tax
1.0%
1/1/2004
OH[C
Greenfield EVSD Local Tax
1.25%
1/1/2014
OH7Z
Hillsdale LSD Local Tax
1.25%
1/1/2014
OH8D
Jeromesville Local Tax
1.0%
9/1/2012
OH(G
Liberty Center JEDD Local Tax 1.0%
1/1/2014
OH8E
North Robinson Local Tax
1.0%
1/1/2014
OH8A
Norwayne LSD Local Tax
0.75%
6/1/2013
OH8F
Milford JEDD III Local Tax
1.0%
10/1/2013
OH8G
Milford JEDD IV Local Tax
1.0%
10/1/2013
OH(L
Morral (Marion) Local Tax
1.0%
1/1/2004
OH8B
Pettisville LSD Local Tax
1.0%
10/1/2013
OH(R
Pleasantville (Fair) Local Tax
1.0%
1/1/2005
OH{Z
Southeastern LSD Local Tax
1.0%
7/1/2013
OH(E
West Liberty (Logan) Local Tax 1.0%
0.5%
Oklahoma
The Unemployment Insurance wage base limit decreases to $18,700 for 2014(down from $20,100 for 2013).
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Oregon
l
The Unemployment Insurance wage base limit increases to $35,000 for 2014.
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Effective January 1, 2014, the Oregon Department of Revenue has increased the Lane County Transit
District tax (ORB Lane County Trans Dist Excise) rate to 0.7%.
l
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record
Updates to State W-2s for details of the formatting changes.
Pennsylvania
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The Unemployment Insurance wage base limit increases to $8,750 for 2014.
23 Sage Abra Suite Payroll Q4 2013 Release Notes
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The LST rate for Scranton, Pennsylvania (imposed on employees working in Scranton) is $52.00 or
$1.00 per week prorated. Although the tax is comprised of $47 for the city portion and $5 for the school
district portion, both portions are collected by one tax collector; the tax collector is responsible for
allocating the monies between the city and the school district for the LST remitted. As a result of this
discover, the system tax table for PAOT for Scranton SD LST has been expired. The valid system
table for PAEA should be used for employees working in the city of Scranton, Pennsylvania to be
withheld the appropriate annual LST amount of $52.
Rhode Island
l
The Unemployment Insurance wage base limit increases to $20,600 for 2014.
l
The Rhode Island Department of Labor and Training has announced that the 2014 employee
contribution rate to the Temporary Disability Insurance (TDI) fund remains unchanged at 1.2%.
However, the TDI taxable wage base increases from $61,400 to $62,700 in 2014. The maximum TDI
contribution increases from $736.80 to $752.40.
South Carolina
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
South Dakota
The Unemployment Insurance wage base limit increases to $14,000 for 2014.
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Tennessee
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Texas
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Utah
The Unemployment Insurance wage base limit increases to $30,800 for 2014.
Sage Abra Suite Payroll Q4 2013 Release Notes 24
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Washington
The Unemployment Insurance wage base limit increases to $41,300 for 2014.
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
West Virginia
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Wyoming
The Unemployment Insurance wage base limit increases to $24,500 for 2014.
The state EFW2 has been updated in accordance with the SSA specifications. See Federal Record Updates
to State W-2s for details of the formatting changes.
Local Taxes
Sage is always striving to provide you with the tax codes you need to set up payroll processing for your
employees. If you require a local tax that is not listed in the System Tax Tables, please send the related tax
documentation from the state or locality with your request to [email protected].
Tax Forms
Because all printed forms have variations, Sage Abra Suite Payroll only supports forms printed by Sage
Checks and Forms. Call Sage Checks and Forms at 1-800-869-8950 or visit the website at
https://sage.checks-and-forms.com.
Sage Payroll Tax Forms and eFiling by Aatrix enables you to generate, file, and print your W-2 forms at YearEnd. This functionality also enables you to reprint W-2s if necessary, as well as to make electronic copies
available to your employees online.
25 Sage Abra Suite Payroll Q4 2013 Release Notes
Payroll Product Updates
W-4 Digital Signature
Previously the digital signatures would fail when employees used an uppercase letter in the password, and
this issue has been corrected with this release. (16028)
Voiding W-2s Message
The pop-up message presented when voiding a W-2 has been corrected for grammatical errors. The message
now reads "Check Box for VOID has been changed. Voiding W2 affects the form W3. Do you want to enter
note?". (15757)
Sage Abra Suite Payroll Q4 2013 Release Notes 26
Sage Abra Suite Installation Instructions
Important!
You should never install a quarterly update if Trial Quarter Close has already been run. You must install this
Q4 2013 Product Update before you run Trial Quarter Close for the current payroll quarter.
If you have already run the Trial Quarter Close, you must restore the external backup you made prior to the
Trial Quarter Close, install the Q4 2013 Product Update, and rerun Trial Quarter Close. As a reminder, the
Trial Quarter Close can be processed in two ways:
1. You can run it manually (from the Navigation Pane, select Payroll > Processes > Run Trial
Quarter Close), or
2. It is run automatically when you run the first payroll that has a Check Date in the next quarter.
To verify the version of Sage Abra Suite, from the Main Menu, select Help > About Sage Abra Suite and the
current version installed will be displayed. If the version reads 9.113616, the Q4 2013 update has already been
applied.
l
Before installing this update, back up your Sage Abra Suite Data folder by using your external backup
procedure.
l
Before you run the Trial Quarter Close process for this payroll quarter, you must install this Q4 2013
Product Update.
NOTE: Product updates are cumulative. This Q4 2013 update includes all product enhancements, tax
updates, hot fixes, and any other changes since the release date of the version. If you did not install
previous updates, you need only to install this Q4 2013 Product Update to bring your Sage Abra Suite
environment up to date.
Step 1 - Download the Product Update
1. Back up your Sage Abra Suite data by using your external backup procedure.
2. Log on to the Sage Customer Portal at: https://customers.sagenorthamerica.com/
3. Under the Solve a comment problem section at right, click Sage HRMS Downloads and Updates.
4. Select Sage HRMS Product Updates.
5. Select the version of Sage Abra Suite your company uses, or scroll down the page to find the right
version.
6. In the list under the product, click the link for Product Update Q4 2013 and click Save.
7. Choose where you want to save the file and Save the file.
8. On the Download complete window, click Open and extract the files to a location other than your Sage
Abra Suite directory -- preferably a temporary directory.
If the steps above were not performed on the server, please copy the unzipped folder to the server before
proceeding.
Sage Abra Suite Payroll Q4 2013 Release Notes 27
Step 2 - Install the Product Update
1. Open the folder with the extracted files, right-click the .exe (executable) file and run as administrator or
the current user with administrator rights. Make sure the Protect my computer and data from
unauthorized program activity check box is not selected. If there is no option to run as the
administrator, double-click the .exe file.
2. After a few minutes, the Install Shield Wizard appears. Click Next.
3. Follow the instructions, and click Finish when prompted.
4. Make another backup of the Sage Abra Suite Data folder using your external backup procedure. This
ensures that you have a backup of the new version of the software.
Step 3 - Launch the Client
Launch the Sage Abra Suite client from any workstation.
The first time a client is launched after the server update, you will receive the message “You have installed a
new version of Sage Abra Suite and your files must be updated”. This message appears only upon the first
launch of a client following the server update. Click OK to initiate the file update.
Step 4 - Activate the Product Update
1. From the Navigation Pane in Sage Abra Suite, select Setup > Payroll > System Tax Tables. The
System Tax Tables page opens.
2. Click the Apply Legislative Update button. The Update Legislative Tables dialog box opens and
displays the following items:
l
Federal, state, and local taxes that have changed since the last tax table update
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Federal, state, and local taxes that you have not previously installed
l
Any tax that has a Sage Abra Suite user has manually changed since the last update
NOTE: If a Taxes tab is disabled (grayed out), the taxes in that category (Federal, State, or
Local) do not have updates.
3. Select the Backup old tables to Taxback directory check box. The system makes a copy of your
current Tax Tables before it updates them with the new tables. A copy of the old tables is stored in the
\DATA\TAXBACK directory of your Sage Abra Suite system.
4. Review the Federal Taxes, State Taxes, and Local Taxes tabs and select the taxes you want
updated. Select the check box to the left of the individual tax. If you want to select all taxes in a
category (Federal, State, or Local), select the check box to the left of the Identifier label.
28 Sage Abra Suite Payroll Q4 2013 Release Notes
NOTES: When you select a state tax, the system automatically selects all local taxes that
correspond to the state tax. You can then clear the selection for any taxes you do not want
updated.
l
For any state that has only changed local taxes and not state taxes, the state code will not
appear on the State Taxes window.
l
To verify you have the latest updates for local taxes, you must go to the Local Taxes tab
to view the localities available for update and select the appropriate local taxes for update.
5. When you have selected all the taxes you want updated, click OK. When the system is finished
updating the taxes, the Update Legislative Tables dialog box closes.
Step 5 - Process Payroll
After you have completed installation and activation for all companies, and made any adjustments described
in these Release Notes, you can log on to Sage Abra Suite Payroll and resume processing payroll.
Sage Abra Suite Payroll Q4 2013 Release Notes 29
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