Sage 100 Payroll Update Required For W-4 Changes

Employers have been busy preparing for the new tax season, and that means updates to workers’ W-4 forms. One of the more important changes is that employees can now receive up to $100 in 2018 as a taxable bonus. In addition, employers must withhold federal income taxes and Social Security taxes from these bonuses, which can cause confusion for employees. To make sure your payroll system is updated and to help employees understand the changes, we’ve put together this blog post detailing the Sage 100 Payroll Update Required For W-4 Changes. Read on to find out more about how this update affects you and your employees.

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What is a W-4?

A W-4 is a form that an employee must complete if they are expecting to receive more than $157 in gross income during the calendar year. The form asks for the employee's name, Social Security Number, wages, and other deductions.

How to make changes to your W-4

If you are an employee, your W-4 form dictates how much income tax you will pay on your earnings. However, you may be able to change this information on your W-4 if necessary. Here are some tips on making W-4 changes:

When filing your federal taxes for the year, be sure to include a Form W-4 with your return. On this form, you will indicate whether you want the employer to withhold Federal income taxes from your wages or whether you would like to contribute money directly to your Social Security account. You also have the option of not claiming any benefits such as health insurance and pension contributions.

If you are an employee who wants more money taken out of your wages in order to contribute more money to your retirement accounts or health insurance premiums, then you will need to fill out a new W-4 form. This form can be downloaded from the IRS website at www.irs.gov/individuals/employment-taxes/w4/. The new W-4 should be submitted with your federal taxes so that the correct amount of withholding is done. If you do not submit a new W-4 with your return, then the employer will use the previous W-4 form that you filed with them during the previous tax year.

It is important to remember that if you make any changes to your W-4 after January 1st of any given year, then it is important to file Form 8233 within 15 days

What to do if you're not sure if you need to make a change to your W-4

If you are not sure if you need to make a change to your W-4, you may want to speak with your human resources representative. If you are an employee, your human resources representative can help guide you through the process of making the necessary changes. If you are self-employed, you will need to consult with a tax professional.

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What are the consequences of not making the necessary changes to your W-4?

If you haven't made the necessary changes to your W-4, you may be subject to a higher tax bill this year. Here are the consequences:

1. You may have to pay more in taxes this year. If you don't make the necessary changes to your W-4, you may have to pay more in taxes this year because you'll be classified as an employee with lower wages on your tax return.

2. You may owe additional taxes later on down the road. If you remain an employee with lower wages on your tax return, you may end up owing additional taxes later on down the road because of how income is taxed over time. For example, if you're in your 20s and have $30,000 in taxable income from a job that pays $11/hour, but you're classified as an employee on your W-4 with a wage of only $5/hour, you'll pay 25% federal income tax on all that money (or $7,500), even though it's only worth $11,000 when it's taxed at that rate. That's because withholding taxes are based on your marginal tax rate - which will be higher for someone earning less than their marginal rate threshold amount.

Conclusion

If you are filing your taxes and have been notified by your employer that Sage 100 is now required for wage changes, please follow the instructions provided to update your W-4. If you have any questions about this process or need help completing the form, please don’t hesitate to reach out to our experts We appreciate your cooperation as we work together to keep tax season as smooth and easy as possible!

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