Addsum Advanced Accounting

Advanced Accounting year end and latest payroll information
Last updated for year end 2016 and calendar year 2017 on: 12/8/16, 12/31/16, 1/1/17, 1/3/17

  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 2016 tax forms
Detailed information re: new W-2 federal/state e-filing option
Five states now do not accept paper W-2 forms!

2017 information:
2017 payroll rates/changes and things to do before your first payroll of the year (PDF)
*W-2/W-3 and 1099/1096 changes for year ending 2016
*Federal withholding/other rates changes effective in 2017
State rate changes
*IRS Form 941 and 940 form changes

Adv 7i 2017 payroll updates: $35*

*Includes:   Federal tax tables and state tax table updates for 15 states, PR-B state income tax calculation logic changes for six states, PR-N-B update to improve accuracy of lookback calculation, PR-G enhancement in the event of employee record locks when clearing prior year data and deleting terminated employees. Assumes that the 2015/2016 update has been installed (i.e. does not include the 2015/2016 update).

Adv 7i 2015/2016 payroll updates: $35*

*Includes: employer-sponsored healthcare coverage reporting support on W-2 forms and not including in W-3 totals, PR-G e-filing/export option with portal for federal/state filings+, maintenance updates, changes to additional medicare tax internal calcuations in PR-B, PR-N-B and 941 programs, latest federal tax table, PR-B changes relating to nine states, PR-F FUTA/SUTA history changes to allow access to PR archives if created to access terminated employees, PR-K changes to allow 7 digit from/to wage bracket ranges +actual e-filings involve an additional cost per employee

There are no W-2 form changes nor W-3 form changes for the calendar year ending 2015. 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, 2017, see below.
These changes (applies to all versions of Advanced Accounting including legacy versions) should be made after your last 2015 payroll is processed, and after you have fully processed and finalized (or used the new "clear" option) your 2015 W-2's (which should be done prior to your first 2017 payroll):

  • The social security tax wage limit for 2017 has increased from $118,500 to $127,200. 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 $127,200 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 FUTA rate last changed to 6.0% on July 1, 2011 and remains in effect. Circular E for 2016 dated Dec. 23, 2015 indicates that the rate remains unchanged.

    Sample SY-D screen

  • An additional medicare tax for eligible compensation paid over $200,000 started in 2013 and remains in effect for 2014, 2015, 2016, and again in 2017. 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.

  • PR-K change for tax code US0 is not required): PR-K, tax code US0 remains at $4,050 (same as in 2016)

    Sample PR-K screen for code USO

  • Federal withholding tax rate changes (Notice 1036, December 2016)

    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). 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)

    Circular E, December 2016

  • 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:
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, 2017 include: Indiana, Kentucky, Maryland, Missouri, Oregon and South Carolina.
States with required user maintainable tax table changes include (tax table update is also available from us or contact us for assistance):
California (all tax codes in PR-K need to be updated)
Indiana (requires program update, not table-based plus county tax changes need to be reviewed in PR-A)
Kentucky (also requires program update)
Maine+ (significant changes)
Maryland (also requires program update)
Missouri (also requires program update)
New York
North Dakota
Oregon requires program update, no maintainable table
Rhode Island
South Carolina (also requires program update)
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 form was 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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