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From any computer with EBMS installed, run the payroll update from the link above. This can be done at any time even if you have not yet completed the last payroll of 2011. Various messages will come up, depending on your Windows version and setup. After double-checking the information, choose Allow or Run or Open to continue the process. If you have Norton Internet Security running, it will warn you that a malicious script has been detected. Choose to Authorize this Script (the default is to cancel the process). The update requires a login to EBMS with administrator permissions. When the update has run successfully you will receive the message that the “2012 tax files have been copied successfully for this company!”. This needs to be repeated once for each company that you have setup in EBMS (it does not need to be on each computer).
Important! The tax rates in EBMS will not update until you close the payroll year and run the automatic update, or you run the “Tax/Deduction Rate Update” utility under Payroll -> Utilities. Post all Transactions prior to "Closing Payroll Year..."
What this file updates:
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2011 Tax Forms
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W2 (preprinted and plain paper)
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W3
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1099 and 1096
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2012 Payroll Taxes
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Federal
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FWT (Federal Withholding Tax) tables and withholding allowance changed.
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(SS) Max Gross changed
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State Income Taxes
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New York changed considerably. New York State, New York City, and Yonkers are now the same table.
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PA, OH, IN, NJ, MI, and DE stay the same. No other states are included.
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Other Tax info
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This update does not change FUTA or SUTA rates as they may vary from state to state and company to company.
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1099 Thresholds remained the same.
Social Security Employee Tax remains the same at 4.2%! (at least till the end of February.) The Company Social Security Tax remains at 6.2%.
The Payroll Tax update does not update the employee Social Security tax rate. This must be done manually by following the steps below.
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Go to Payroll > Options > Employee Folders tab.
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Select the topmost (parent) folder and choose the "Edit Defaults" button
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Go to the Employee Taxes tab
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Select the Social Security (SS) tax and choose the "Properties..." button
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Change the "Extra Deduction" field to "Is 4.2%" and choose the "OK" button
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Right-Click on the Social Security (SS) tax and choose the "Filter Down..." menu option
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Check on both options
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Choose the"OK" button
NOTE: Filtering Down will cause all Social Security exempt employees to be reactivated. If you had inactivated Social Security for any employees you will need to inactivate/delete them again. If most of your employees are Social Security exempt you may wish to manually change the Extra Deduction field for each Social Security active employee instead of filtering down.
Note to Pennsylvania Clients:
Per the following document the Credit Work Week amount increases from $50 to $100.
http://www.portal.state.pa.us/portal/server.pt?open=514&objID=552162&mode=2
For instructions on these processes, see the documentation below:
Closing Payroll Year and Adding Reports to the Wizard
Updating Payroll Taxes
RETURN TO YEAR END PAGE
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