Are you payroll taxes being calculated incorrectly? Is your payroll taxes amount different from the online tax calculator?

This issue usually occurs due to incorrect settings in Sage 50. In this article, we will outline some simple steps to manually resolve the problem.

Must Read: How to fix the Sage 50 payroll update error?

 Resolution to the problem

Step 1: Verify you are not in history mode

  1. Is there a History menu beside the Help menu?
  2. If yes:
    • Click the Calculate taxes automatically button in the Paycheque module or
    • Close History before continuing.

Step 2: Verify you have installed the latest tax update

  1. Select Help and go to About Sage 50.
  2. Confirm you have the latest release of Sage 50.

Step 3: Verify the Payroll ID active?

  1. Select Help and go to About Sage 50.
  2. Select Support Info.
  3. Confirm the Payroll ID is Active.

Step 4: Verify the income has been set properly

  1. Select Setup and go to Settings.
  2. Select Payroll and then select Income.
  3. Verify Calc. Tax is checked.
  4. Open the Employee Record and click on the Income tab.
  5. Verify the Amount per Unit and Hours per Period are correct.

Still need help?
Get in touch with our Sage 50 team to calculate federal, state, and local payroll tax amounts within Sage 50 and to stay current with regulatory changes & other Sage 50 help and support. Disclaimer

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