Addsum Advanced Accounting

Advanced Accounting year end and latest payroll information
Last updated for year end 2017 and calendar year 2018 on 1/28/18 (first updated on 12/27/17, last updated 3/8/18)

  Before your first payroll of the year, just do this: PR-G Clear and process later available since Adv7i r4
PR-G Clear employees/process W-2s later

Paperless Filing option flyer for 2017 tax forms
Detailed information re: new W-2 federal/state e-filing option
(procedure remains the same for 2017 e-filings, re-tested on Dec. 27, 2017; employee e-mail support now available)
Five states now do not accept paper W-2 forms!

2018 information:
*W-2/W-3 and 1099/1096 changes for year ending 2017
*Federal withholding/other rates changes effective in 2018
See also: 2018 early release notice 1036
State rate changes
*IRS Form 941 and 940 form changes

Adv 7i 2018 payroll updates: $35*

*Includes:   Federal tax tables and state tax table updates for 10 states/jurisdictions, change for federal suppplemental wage rate, new calculator option in PR-B for federal/state income tax withholding, 941 program update, SY-D update. Assumes that the 2015/2016 update has been installed (i.e. does not include the 2015/2016 update) and optimally the 2017 update.

There are no W-2 form changes nor W-3 form changes for the calendar year ending 2017. The W-3 form had a minor change in 2014. There are no form 1099-MISC nor 1096 changes that impacts Advanced Accounting. Concerning other changes that go into effect starting in January 1, 2018, see below.
These changes (applies to all versions of Advanced Accounting including legacy versions) should be made after your last 2017 payroll is processed, and after you have fully processed and finalized (or used the new "clear" option) your 2017 W-2's (which should be done prior to your first 2018 payroll):

  • The social security tax wage limit for 2018 has increased from $127,200 to $128,400. The employee (and employer) rates remain at 6.2.

    Procedure to verify/change: In SY-D, retrieve each division one at a time, press ENTER, PgDn, and verify that the employee and employer rates are 6.2. Update each division for the $128,400 change: continue to press ENTER until you return to the main screen then press F10 or click on the save button if the amount needs to be updated. Here you also update your new SUTA rate and limit as well as any new state disability rate/limit for the new year. The 2018 payroll update will automatically and update your divisions for this change.

    The FUTA rate last changed to 6.0% on July 1, 2011 and remains in effect.

  • An additional medicare tax for eligible compensation paid over $200,000 started in 2013 and remains in effect for 2014, 2015, 2016, 2017, and again in 2018. Existing Advanced Accounting W-2/W-3 forms will handle this new additional tax for 2013 through 2017 as long as you have the 2015/2016 payroll updates.

  • For federal tax table rates, an early release notice was posted by the IRS on Jan. 11, 2018 as was discussed in our 2018 early release notice 1036 blog published on January 11, 2018 blog. We provided preliminary information in our December 26, 2017 blog post. In a related statement published with the early release notice, the IRS indicated that 2017 withholding tables could/should continued to be used in January 2018 but that by February 15, 2018, the new table changes should be implemented.

    On January 28, 2018 we released an official Advanced Accounting update that includes not only the updated tables but also changes for a number of states requiring logic changes and/or tax table changes. Federal changes include the required updates to Advanced Accounting federal tax codes US0, USS and USM.

  • Supplemental wage percentage for federal withholding has changed from 25% as of 22% starting in 2018. This change is in the 2018 payroll update. Advanced Accounting 6.1 starting with rel. 14 (and all releases of Advanced Accounting 7i) contains logic to handle both federal and state flat rate percentage supplemental wage withholding as we become aware of rate changes. Your state may also have a flat rate for supplemental wage (for example, bonuses) payments.

More information:
Adv 7i and 6.1 information (an editable W-2 capability was added in 2008); 941/W-2 enhancements made to 7i
E-filing requirements:
The SSA/IRA federal requirement to file W-2's electronically remains at 250, however, e-filing is encouraged by the IRS to improve accuracy and timeliness. E-submissions are also viewed by some as being more secure and less prone to identity theft.
Connecticut, North Carolina, Oregon, Utah and Virginia are currently states that do not accept paper W-2 state form filings. The e-filing threshold for Minnesota is 10. Other states such as Alabama, Maryland, Mississipi, Rhode Island and Vermont, have a 25 forms or more requirement; for Indiana, it is 26. Others, including Idaho, Massachusetts, West Virginia and Wisconsin have a 50 employee requirement; for Nebraska, Kansas and New Mexico, the cut-off is 51.
Clearly the state/federal trends will be for lower and lower thresholds.
Tax and other forms
State specific changes will be outlined here as we become aware of them:
States with required program updates effective Jan. 1, 2018 (unless indicated otherwise):
States with required user maintainable tax table changes include (tax table update will be available from us or contact us for assistance):
California (numerous tax table updates)
Indiana - county changes - end user implemented
Kentucky - standard deduction change (requires program update)
Louisiana - delayed making changes until 2/16/18 (requires program updates - see blog post)
Maryland - county changes but no table/program changes
Minnesota - standard deduction change (requires program update), tax table changes
Missouri - has deferred making changes but changes are expected
New Mexico - table changes only
New York - tax table changes only
North Carolina - formula change (program update required - tax tables do not apply)
North Dakota - has deferred making changes but changes are expected
Rhode Island - standard deduction limit change and tax table changes
South Carolina - standard deduction changes (requires program update, tax table changes)
Washington DC - standard deduction and logic to retrieve a single tax code, tax table change
We remain fully committed to an integrated payroll module; it is part of what a complete accounting system must have, and it is not something that should be outsourced by the software. End users however may choose to have their payroll needs outsourced in which case they can still process payroll related transactions in Advanced Accounting either through the payroll module to mirror what occurs on the outside or via a synchronizing general ledger entry.

IRS Forms 941 and 940
The 941 program and report was updated in January of 2018 to synchronize it with form 941 line number changes and related verbiage.
The 941 form was also updated during the first half of 2013 in connection with the additional medicare tax. The 941 and 940 programs were both updated in October of 2013 in connection with how they set the default rates. The 941 program's additional medicare tax logic was updated in Jan. of 2014 and again in Dec. of 2014, 2015 and 2016.

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