As of August 1, 2011 Connecticut has new tax withholding rules which require some modification to the standard MAS0/MAS200 payroll module.
The new CT withholding rules can be reviewed here on the Connecticut Department of Revenue Services site. Be sure you consult your tax advisor on the best way to apply these rules. As a reminder Schulz Consulting does not provide tax or accounting advisory services. We recommend you consult your tax advisor with specific questions on the new tax rules. This update is not meant as a substitute for such discussions.
Because these Connecticut withholding tax changes required new computation steps in the MAS90 and MAS 200 payroll – Sage released an updated tax calculation program for those users on Sage ERP MAS 90 or 200 v22.214.171.124+, 126.96.36.199+, 188.8.131.52+.
IMPORTANT: Please be sure to read the instructions for the respective update. There may be several steps including some manual computations due to the complexity of the new Connecticut rules.
At a minimum you will need to:
A. Install the modified tax calculation program for your version of MAS 90 or MAS 200
B. Install the Payroll Tax Table Update
C. Assign the appropriate new employee filing status for each employee that earned Connecticut income in 2011 prior to August 1 (see the instructions for the modified tax calculation program).
We recommend you manually verify the computed payroll taxes for at least the first payroll run which includes the new CT updates. You are responsible for verifying the accuracy of tax information withheld and compliance with regulations – not Sage. Compare the withheld amounts against what the tables provided by CT indicate should be withheld.
You can access the tax calculation updates and view more information at the following link.