Advanced Accounting payroll year end and latest information

There are no W-2/W-3 nor 1099/1096 changes for tax year 2009 (there were also no 2008 changes). Both Advanced Accounting 5.1 and 6.1 forms were updated for 2007 changes. If you have those updates, then you will be ready to print W-2's for 2009. If not, follow the links below for more information. Concerning other changes that go into effect starting in January 1, 2010, see below.

In payroll updates available with Advanced Accounting 7i, the state ID number has been expanded to 15 digits to meet the requirements of the state of Wisconsin (see Wisconsin Employer's Withholding Tax Guide).

These changes (applies to all versions of Advanced Accounting including legacy versions) should be made after your last 2009 payroll is processed, and after you have fully processed and finalized your 2009 W-2's (which should be done prior to your first 2010 payroll):

Social security tax wage limit remains $106,800 (2010 Publication 15, Circular E, page 2)

Verify this amount which should have been changed as of the first of 2009: SY-D, retrieve each division one at a time, press ENTER, PgDn, verify the 106,800 amount, 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.

Sample SY-D screen
The federal standard exemption remains unchanged and for 2010 remains at the 2009 level of $3,650 (Circular E page 37)
No change in Advanced Accounting required: PR-K, tax code US0 should continue to be $3,650 (was $3,500 prior to 2008).

Sample PR-K screen for code USO
Federal withholding tax rate changes (Circular E Table 7 page 40)
Change in Advanced Accounting required: PR-K, retrieve tax code USS then USM and follow Table 7. Update the from, to and tax amount columns (there are no changes in the "plus" % column). Or, follow the example screen shots below the table. Use PR-K also to update changes in state tax rates if state follows same approach as federal. If your state has made changes and you cannot locate a corresponding tax code, please contact us (or call 801-277-9240)

2010 Circular E dated Dec. 17, 2009 page 40:

Sample PR-K for code USS (single) Sample PR-K for code USM (married)
(these have been updated for latest changes)
Supplemental wage percentage for federal withholding remains at 25%. 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. Your state may also have a flat rate for supplemental wage (for example, bonuses) payments.

More information:

Early Release Copies of New Wage Withholding and Advanced Earned Income Credit Payment Tables (Nov. 2009)

Circular E, Employer's Tax Guide (Publication 15 of Dec 17, 2009)

Adv 7i and 6.1 information (an editable W-2 capability was added in 2008)

Adv 5.1 W-2/payroll/other updates

Tax and other forms

Addsum state tax links (all checked/updated 1/27/10)

States with required updates include Connecticut, Kentucky and Missouri. States with user maintainable changes include:

Alabama: Small change to brackets (note: now requires electronic W-2's for 50+ employees)

California: Table updates

Colorado: Table & exemption udpate

Delaware: Table update

Minnesota: Table updated

New Mexico: Table, exemption

North Dakota: table update

Oklahoma: Table update

Rhode Island: table update

Vermont: table update

We remain 100% 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 the software either through the payroll module to mirror what occurs on the outside or via a general ledger entry.