How do I manually update my benefits for the new year?

Option 1: Automatically update

When you create your first payroll in January you will be prompted to update limits and percentages. You can update on this screen and Sage 50 will write the new formula for you with that information

Option 2: Update a benefit that was created with the Payroll Settings wizard

Benefits that are created by Sage 50 such as Insurance Plans, Retirements Plans, and Flexible Spending Accounts, can be updated in the Payroll Settings wizard provided you are in the new calendar year. Any updates you make in the Payroll Settings wizard will also update tax formulas and the default payroll information.

1. From the Maintain menu, go to Payroll, Payroll Settings.
2. On the left menu bar, choose Benefits and the type of benefit you would like to update.
3. Once you have made the necessary updates to your benefits, click Finish.

Option 3: Update a benefit that was manually created via the Payroll tax formula

If you have manually created formulas for your benefits, you will need to update those on the User-Maintained Tax Formulas screen. Follow the steps below for manually updating a Payroll Tax formula.

Section 1: Changing the Payroll tax formula

1. From the File menu, select Payroll Formulas then User-Maintained. The User-Maintained Payroll Formulas window displays.
2. Select the benefit you want to update from the Formula ID drop-down menu.
   • For example, 401K ER
3. In the Formula ID field, add or change the ID to correspond with the new payroll year.
   • For example, you might change 401K ER to 401K24 ER.
4. In the Name field, change the two-digit year to the new payroll year.
   • For example, change 401K ER 23 to 401K ER 24.
5. Make any modifications that are required for the formula such as updating the limit or percentage values.
   • When entering a PERCENT value, use at least two decimal places.
   • For example, if your percentage rate is 3%, then enter PERCENT=3.00; if your percentage rate is 2.7%, then enter PERCENT=2.70.
6. Select Save to save the new formula.
7. Select Close to exit the window.

Section 2: Updating your Limits and Catchup Limits

1. Select File, Payroll Formulas, and User-Maintained...
2. Select the benefit you want to update from the Formula ID drop-down menu
   • For example, 401K ER
3. To change the Catchup Limit, look for the line that says 'CLIMIT=' then enter the new amount.
4. To change the standard limit, look for the line that says 'LIMIT=' then enter the new amount.