Simply Accounting by Sage 2007 Product Update
Simply Accounting by Sage 2007 Product Update
Install the Product Update ......................................................................................... 1 About Product Updates.............................................................................................. 1 Why do I need this update? .................................................................................. 1 When do I install the product update? .................................................................... 2 Where can I find the update? ................................................................................ 2 How to automatically update Simply Accounting.................................................. 2 How to manually update Simply Accounting ....................................................... 2 Download product updates from the Simply Accounting Web site........................... 2 Installing updates from the Product Update CD ................................................... 3 How do I install the product update? ...................................................................... 3 Payroll Income Tax Changes for 2009 ......................................................................... 4 Federal Income Tax Changes ................................................................................ 4 State, District, and Territory Income Tax Changes.................................................... 4 SUTA Wage Base Changes .................................................................................... 5 SUTA Rate Changes ............................................................................................. 6 State Disability Insurance (SDI) Changes................................................................ 6 Family Leave Insurance (FLI) Changes ................................................................... 6 Frequently Asked Questions ....................................................................................... 7 Why do the tax calculations in the year 2009 seem to be the same as last year? .......... 7 How can I get quick answers for common problems? ................................................ 7
State Tax Information in the Payroll Module
Entering Information in the State Tax Fields ................................................................. 8
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Simply Accounting by Sage 2007 Product Update
This document provides information, instructions, and answers to questions you may have concerning this product update. This document covers the January 31, 2009 payroll update for Simply Accounting by Sage Pro. Some state tax changes where received too late for inclusion in the January 1, 2009 product update. Note that all state tax updates described in this document were effective January 1, 2009.
Please note!
Be sure to read the section “Payroll Income Tax Changes for 2009” to see if you need to make adjustments in Simply Accounting. Depending on how you installed the full version of Simply Accounting Pro, you may have to install this product update on every user’s computer, or only on a single computer. For full details, see the note about updating in multi-user environments on page 3.
Install the Product Update
The product update you need to install for Simply Accounting by Sage Pro is called Simply Accounting by Sage Pro, Release I. Note: This product update contains tax update information only. It does not contain the complete Simply Accounting program. If you ever need to reinstall all the Simply Accounting program files, use your regular program CD, as outlined in the Installation topic of the Quick Start guide. Then install the product update, as described later in this notice.
About Product Updates
Why do I need this update?
You need this product update to process your payroll for 2009. Make sure your accounting data is located on a Windows XP, or 2000 server or workstation. You can then safely use the accounting data. If you do not know the operating system of the computer where your accounting data files are located, contact your network administrator or the person who set up your network to make sure that the data is located on a Windows XP or 2000 computer.
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About Product Updates
When do I install the product update?
Back up your data and then install the product update as soon as you receive it. When you begin processing payrolls for 2009, you will need this product update for calculating income taxes for 2009. Simply Accounting uses the income tax tables for 2009 when you enter a 2009 date as the session date.
Where can I find the update?
You can update Simply Accounting in one of four ways: • • • • Automatically, using Simply Accounting. Manually, using Simply Accounting. By downloading the update from the Simply Accounting Web site. By running the product update CD.
How to automatically update Simply Accounting Simply Accounting can automatically check for product updates whenever you are connected to the Internet. When an update is available, you are given the option of downloading and installing the update. For more information, search for “Automatic Updates” in the Help. How to manually update Simply Accounting We recommend that you enable the “Automatic Update” setting in Simply Accounting. If you choose not to enable this feature, you can always manually download the updates when you are connected to the Internet. Follow the steps below: 1. Open the Help menu and select Check for Updates. 2. Click Check Now. 3. If an update is available, click Download Now. When the download is complete, you will be prompted to install the update. Download product updates from the Simply Accounting Web site For your convenience, updates are also available on the Simply Accounting Web site at: http://www.simplyaccounting.com/support/productupdates/ Use this method if you experience problems with the automatic or manual update options described above.
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About Product Updates
Installing updates from the Product Update CD If you received your product update on CD, install the product update as soon as you receive it.
How do I install the product update?
Back up your data
Make a backup copy of your data before you install the product update. Note: Always back up your data before installing your product update, and before any major changes, such as before advancing the session date to a new calendar or fiscal year. If you are downloading the product update from our Web site, follow the installation instructions on the Web site. If you receive the update on CD, follow these instructions to install your product update.
Important!
Note about updating in Multi-user environments: • If you installed the full version of Simply Accounting on each user’s computer, you must install the product update on each of those computers.
Or • If you had installed the full version of Simply Accounting on a single computer and workstation components on the other computers that use it, then you only need to install the product update once, from any workstation.
1. Start Windows. 2. Back up your Simply Accounting data files (if you have not already done so). 3. If you received your update on a CD, insert the CD into your computer’s CD drive. 4. If the installation starts automatically, proceed to step 5. Otherwise: a. In Windows, click the Start button and choose Run. b. Type d:\launch.exe (replace d: with the letter of the drive in which you inserted the CD) and press Enter. c. Select OK. 5. Follow the step-by-step instructions on the screen.
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Payroll Income Tax Changes for 2009
Ensure you install the product update version that is compatible with your Simply Accounting product. From the Help menu, choose About Simply Accounting. 6. A dialog box appears, telling you the installation is complete. Click OK.
Read the README.TXT file
The README.TXT file appears. This file contains information about last-minute changes to Simply Accounting. 7. When you have read the README.TXT file, close the Notepad window. 8. Start Simply Accounting. To ensure that you have installed the latest update, choose About Simply Accounting from the Help menu. Check that the version is correct, as outlined in step 5. 9. Store your Simply Accounting update in a safe place.
Payroll Income Tax Changes for 2009
The following sections describe income tax changes included in the January 31, 2009, product update. This product update contains all the tax changes for 2009 that were announced up to the date of the preparation of this update. If we receive additional tax changes for 2009, new tax updates and documentation will be available. Use the tax update in this package to run your payrolls in 2009 until you receive a later product update, if any.
Federal Income Tax Changes
Social Security wage base for 2009 has increased to $106,800.00 from $102,000.00.
State, District, and Territory Income Tax Changes
This product update contains changes to the state income tax withholding tables for the following, effective January 1, 2009, unless otherwise noted: • • • • • California Connecticut District of Columbia Kentucky Maine
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Payroll Income Tax Changes for 2009
• • • • • • • • • • •
Michigan Minnesota Maryland (Changes effective July 1, 2008). Missouri New Mexico North Dakota Ohio Oklahoma Oregon Rhode Island Vermont
SUTA Wage Base Changes
Tax Year State 2009 2008
Alaska Illinois Idaho Iowa Minnesota Missouri Montana Nevada New Jersey New Mexico North Carolina North Dakota Oklahoma Oregon Rhode Island South Dakota
32,700 12,300 33,200 23,700 26,000 12,500 25,100 26,600 28,900 20,900 19,300 23,700 14,200 31,300 18,000 9,500
31,300 12,000 32,200 22,800 25,000 12,000 23,800 25,400 27,700 19,900 18,600 22,100 13,600 30,200 14,000 9,000
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Payroll Income Tax Changes for 2009
Tax Year State 2009 2008
Utah Washington Wisconsin Wyoming
27,800 35,700 12,000 21,500
26,700 34,000 10,500 20,100
SUTA Rate Changes
In Pennsylvania, the SUTA employee withholding rate decreased to 0.06% from 0.09%.
State Disability Insurance (SDI) Changes
State Description
California
SDI rate: 1.1% Taxable wage limit: $90,669 per employee per year Maximum amount to withhold: $997.36
Hawaii New Jersey Rhode Island
Maximum weekly wage base: $877.69 Taxable wage base limit: $28,900 Taxable wage base limit: $56,000
Family Leave Insurance (FLI) Changes
New to the state of New Jersey, the employee withholding rate for Family Leave Insurance (FLI) is 0.09% for the 2009 calendar year. In Simply Accounting, the FLI amount for an employee is included in the SUTA (State Unemployment Tax Act) amount.
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Frequently Asked Questions
Frequently Asked Questions
Why do the tax calculations in the year 2009 seem to be the same as last year?
It is possible that some taxes actually are the same as last year. Since many rates change, however, it is more likely that you haven’t yet installed the product update, or you installed the update in the wrong directory, or you have not entered a session date in the new year. For a list of the January 1, 2009 tax changes, see the section “Payroll Income Tax Changes for 2009."
How can I get quick answers for common problems?
For quick answers to questions you may have, try our Web site at http://www.simplyaccounting.com
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State Tax Information in the Payroll Module
Entering Information in the State Tax Fields
The State field (on the Taxes tab of the Employee Records window of the Payroll module) consists of up to three fields, depending on the state tax table assigned to the employee. The three fields are: State Allowances. This is the first (leftmost) field. It normally contains the number of state withholding allowances being claimed by an employee. For some states, the number to be entered must be calculated from other information. For a few states, you need to enter a number in the second (center) field containing additional information. State Status. This is the third (rightmost) field, and is for the employee’s filing status. The following states require special handling: Arizona. Use the employee’s A-4 form to determine which rate to use. In the State Status field, choose one of the following rates:
Option: Tax Rate:
Required rate
10% of federal income tax withheld, if annual earnings are less than $15,000, or 19% of federal income tax withheld, if annual earnings are $15,000 or greater. 23% of federal income tax withheld 25% of federal income tax withheld 31% of federal income tax withheld 37% of federal income tax withheld
Rate 1 Rate 2 Rate 3 Rate 4
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Entering Information in the State Tax Fields
Option:
Tax Rate:
Rate 5 Rate 6 Zero Withholding
10% of federal income tax withheld 19% of federal income tax withheld 0% of federal income tax withholding
California. In the State Allowances field (the first State field), enter the total number of allowances for tax credits from the employee’s DE-4 or W4 form. In the second (center) field, enter either the number of these allowances which are for additional allowance for itemized deductions, as shown by line 2 on the employee’s DE-4 form, or the number requested by the employee if form W-4 is used. In the State Status field (the third field), enter the employee’s filing status. Illinois. In the State Allowances field (the first State field), enter the number of basic allowances. In the second (center) field, enter the number of additional allowances. Louisiana. In the State Allowances field (the first State field), enter only the number of dependent credits claimed for withholding (may be 0 or more). In the State Status field, enter the employee’s filing status. The program automatically calculates the number of personal exemptions claimed for withholding, according to the filing status entered. Massachusetts. In the State Allowances field (the first State field), enter the number of withholding exemptions from the employee’s M-4 or W-4 form. If the employee also claims the blind exemption, enter 1 in the second field. Mississippi. In the State Allowances field (the first State field), enter the total amount of exemption claimed, divided by 500 (for example, $6,000 / 500 = 12). New Jersey. In the State Status field (the rightmost field), enter one of the following filing-status options. The program will use the appropriate New Jersey tax rate to calculate income tax withholding.
Option: Tax Rate:
Single Married filing separate Married filing joint Head of household Optional higher rate
A A B B C
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Entering Information in the State Tax Fields
Option:
Tax Rate:
Optional higher rate 2 Highest rate
D E
Virginia. In the State Allowances field (the first State field), enter the number of withholding exemptions from the employee’s VA-4 or VA-4P form. In the second field enter the number of total exemptions for being age 65 or over, or blind according to the employee's VA-4 or VA-4P form.
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