RePost from August: Additional Information Regarding Calculating Connecticut Taxes

We have received numerous questions about the new Connecticut Payroll Tax Table Update. Please see the information below to help you with any questions that you may have.

Due to the significant changes in the Connecticut tax law you must pay special attention to employees' wages throughout the balance of the tax year. The following are some special circumstances where the Sage ERP MAS 90 and 200 Payroll program calculations cannot fully accommodate these tax law changes and manual calculations may be required. For example:

• If you have recently hired employees, prior to August 1, 2011, you will have to determine whether to continue to use their existing filing status or change to the new filing status. Either way, for this small group of employees, they will be under or over withheld. You may want to calculate their taxes manually to determine which filing status will calculate the most accurate withholding amount for the rest of the year.

• For employees with varying paid hours (20 hrs week 1, 30 hrs week 2 etc) you would need to manually calculate their taxes using the wage bracket tables and enter as manual taxes in Payroll Data Entry for each check.

• In order for employees who have elected to have an additional state tax amount withheld from their check, manual tax calculation will be required because the new recapture taxcalculations for Connecticut will keep adjusting the YTD state tax based on the new tables.

• For employees with standard paid hours (40 hours weekly) who have elected to have an additional state tax amount withheld from their check, you would manually calculate their taxes and add the additional amount, then store the amount as an override Amount in Employee Maintenance. Or, you may elect to no longer make the additional calculation available to your employees.

• For employees with varying paid hours (20 hrs week 1, 30 hrs week 2, etc) who have elected to have additional state tax amount withheld you would need to manually calculate their taxes using the wage bracket tables, add the additional amount and enter the sum as manual taxes in Payroll Data entry for each check. Or, you may elect to no longer make the additional calculation available to your employees.

• For employees who receive a raise in pay after August 1, 2011, it may be necessary to re-assign their Filing Status when processing their change if the salary adjustment moves them into another bracket.


If you have any additional questions, please contact either the State of Connecticut, or your accountant.

Think about Year-End Processing!

A Little Extra Pre-Planning Now Will Help To Make Your Year-End Less Stressful.

Computer Management Services (CMS) can provide you with the tools you need during the year-end hustle and bustle to stay well informed and ahead of the game.

Schedule time today for CMS to assist with your year-end preparations, creation of new companies, module closing and W-2’s, 1099’s and tax table updates.


Appointments for Year-End Processing are booking up quickly. Call Nikki Spirito at 860.399.4215 x.202 today to reserve your time.

Do you pay too much to manage sales tax?

As you plan your 2012 budget, take time to evaluate your current sales tax management solution. Many accept this function as necessary overhead but do you know what you're actually paying? Have you considered compliance risks you may face?

Whether you manually calculate sales tax or use some level of automation, you may be paying too much. Here are some questions to ask yourself. Do you:

1. Use manual methods, which increase the risk of incorrect calculations?
2. Spend days or weeks preparing returns for filing?
3. Struggle keeping up with tax jurisdiction changes, which can reach nearly 100 per week?
4. Want to simplify exemption certificate management?
5. Dread the 1099 filing process?
6. Need to cut costs in your budget?

If you answer yes to any of these questions, we encourage you to learn more about AvaTax - the most frequently selected sales tax solution for businesses of all sizes. The time you take now to investigate AvaTax may pay off for you and your company in the months and years ahead. If you have any questions or need more information, please call Nikki Spirito at 860.399.4215 x.202 or visit www.avalara.com.

Only Two Days Left Until Our User Group

There are only two days left until our Annual CMS MAS ERP User Group Conference. Registration is still open so if you can make it, but register with Nikki Spirito today. This year's conference is being held at Water's Edge Resort and Spa in Westbrook, CT. We have representatives from Sage Software, Knowledge Sync and Avalara attending. Great informational, networking and educational conference with giveaways. The conference is FREE. Call 860.399.4215 x. 202.

Tax Credits Save You Money

How to save money while hiring with CMS's employment tax credit services. Booth #924

A perfect fit for staffing agencies, in these challenging times there is a way to save money while hiring and growing your business, with Work Opportunity Tax Credits. "WOTC" is a federal program designed to promote the hiring of individuals who qualify as a member of a target group with barriers to employment. Employers participating in the program can receive a Federal Tax Credit (typically $2,400.00) for each qualified new employee, which can be used to reduce your companies federal income tax liability.

Who can take advantage of these tax credits?

For profit companies in the United States i.e. C, S and LLC’s can all apply these tax credits to their Federal Tax Liability. Because Non-Profits and Municipalities don’t pay taxes they would not qualify. In addition, some states have also started similar programs to provide incentives to employers hiring.

Are you taking advantage?

CMS finds most companies are not aware of this federal tax credit, or if they are familiar with the program, they don’t have the resources or don’t want to ask the sensitive questions needed to acquire the tax credits. That’s exactly the reason many companies outsource this function to CMS. CMS performs the screening process of each new hire and thus protects the employer from any sensitive situations and shields them from a liability standpoint.

To learn more please visit CMS's Employment Tax Credit expert Harvey Patyon at Booth #924 or call 860.399.4215 to make an appointment.

Key changes made to R.I. sales tax

Go into effect one week from Saturday

Updated: Saturday, 24 Sep 2011, 10:32 AM EDT

PROVIDENCE, R.I. (WPRI) - Key changes being made to Rhode Island's sales tax will be effective within the next week.

On Saturday, October 1st, the changes for the state's sales tax will be made official.

The 7-percent tax throughout the state will be added to over-the-counter drugs, digital downloads, and even sightseeing tours. Those changes will be made in efforts to help curb the state's $186-million spending deficit.

Video: RI Sales Tax Changes
http://www.youtube.com/watch?v=NIVw5tSeIew

This is just another reminder of the constant changes as state seek to increase sales tax revenues.

Free MAS User Group: Register Now for November 3rd

CMS Fall User Group - Free Event
Thursday, November 3, 2011
Water's Edge Resort and Spa in Westbrook, CT

Interactive Workshop for MAS Users!
CMS is committed to building a stronger MAS community.

Visit http://www.cmsct.com/newsandevents.html for the meeting summary and to register.

For the first 25 registrants you will be entered into a raffle for a free Kindle and Knowledge Sync user license.

What's New in V 4.40.0.06

Q: What’s new in Version 4.40 Product Update 6?
A: You now can save printer information by Workstation for Report Settings and Form Codes! MAS V 4.40.0.06 will retain the last printer used based on the workstation ID.

Q: How can this be of value to me?
A: This can be very handy in multi-user and multi-location environments where each user would like to print to a specific printer. This enhancement is also is extremely beneficial when particular printers are used for different types of printing.

Q: Will this new feature work with every module?
A: This new functionality will work with the following modules: Accounts Payable, Accounts Receivable, Bank Reconciliation, Bill of Materials, Bar Code, Credit Card Processing, General Ledger, Inventory Management, Purchase Order, Return Merchandise Authorization, and Sales Order.

User Group Registration is NOW Open!

Register Now! Computer Management Services Annual Users’ Group Workshop will be on Thursday, November 3, 2011 at the Water’s Edge Resort and Spa in Westbrook, CT. It is scheduled to begin at 9am and will continue until 2:15. We will be covering topics from V 4.5 to Sales Tax, and everything in between. If you are interested in learning more, or if you would like to register, please contact Nikki Spirito.

Connecticut State Payroll Tax Changes Are Taking Effect August 1st

Connecticut has made some significant changes to payroll withholding tax calculations, effective August 1, 2011. In order for the Sage ERP MAS 90 and 200 Payroll module to fully support these complex changes, several areas of the product have changed, including:

•The Connecticut Tax Table
•Program changes to the calculation engine
•New employee filing status for all existing CT employees will be added

Due to this complexity, program changes for the Connecticut withholding tax will be completed for Sage ERP MAS 90 and 200 versions 4.20, 4.30, and 4.40 and will be included in the initial release for version 4.50. Connecticut companies running Payroll on Sage ERP MAS 90 and 200 versions below 4.20 must upgrade to one of the supported versions in order to comply with this new state-legislated change.

What You Need to Do?

These changes will be included in a program change that will be made available to you in late July. In order to accurately calculate CT payroll taxes the program change for CT employers should be applied to your Sage ERP system after the last payroll run in July and before the first payroll in August. Also, prior to the first payroll run in August, Payroll Administrators will need to assign a new employee filing status for any employee that earned CT income in 2011 prior to August 1. Full details on how and when to implement this new change on supported versions of Sage ERP MAS 90 and 200 will be available to you when the program change is released.

Please call Nikki at 860.399.4215 x.202 to schedule time with our CMS product consultants to help you with these new changes or if you need information on upgrading your current Sage ERP system.

Simple Sale Tax Processing: FREE webinar this Thursday

Register with Nikki today to attend our free webnar this Thursday at 2 pm (eastern). Learn how you can process your sales tax filing with ease in MAS 90 / 200.

Sage Sales Tax reduces your sales tax audit risk with cloud-based services that make it simple to calculate rates, manage exemption certificates, file forms and remit payments. Get intelligent sales tax calculations in your own software Sage Sales Tax integrates with your accounting or e-commerce software to deliver real-time sales tax calculations based on up-to-date sales and use tax rules.

8 Reason Why You Should Be At Sage Summit

Want to attend Sage Summit and haven't registered yet? Want your boss to know the values of Sage Summit? Check out the 8 reasons why you should be attending. http://www.sagesummit.com/Documents/ReasonsToAttend_Customer.pdf

Do you file Sales Tax in multiple states?

Have you ever found yourself in a Sales Tax Audit? Do you constantly find yourself dealing with Exemption Certificates? Have you implemented new processes recently? Have you completed a system upgrade recently?

If you answered yes at least once to the questions above, we encourage you to ask how we can help. What would you say if we told you that we can introduce you to a solution that can save you time, money, and offer you protection from the risk of a sales tax audit? This same solution can ensure your sales tax compliance.

Sage Sales Tax calculates Sales Tax accurately by identifying all applicable taxing jurisdictions to a street address. The best part is, it seamlessly integrates into MAS. Please give us just 30 minutes of your time, and we can give you a piece of mind.

Webinar Day: June 23, 2011
Webinar Time: 2:00 PM – 3:00 PM

Upgraded? Now what!

Upgraded to the newest version of MAS? Are you using the new solutions included in it? Why not? Call CMS today and we will help you utilize the newest solutions included in your current upgrade. Make your system and organization more efficient and productive with this Let one of our product training specialists work with you and your team on taking advantage of these great additions.

Now Available Product Update 4.40.0.5

The fifth Sage ERP MAS 90 and 200 4.4 Product Update — 4.40.0.5 — is now available via a compact download from Sage Online. Product Update 5 delivers new core features and functionality enhancements in Accounts Payable, Inventory Management, and Library Master as an additional onplan benefit. These customer-requested features add more flexibility, streamline workflows, save time and minimize errors in your Sage ERP MAS 90 and 200 system. The 941 Form 2011 update is also included in Product Update 5.

Call Nicole for more details at 860.399.4215.

Be More Productive

A great article from Inc. on 15 ways to be more productive from top executives. It is a quick read with tips you can easily implement into your office environment. Check it out:

http://www.inc.com/ss/15-ways-be-more-productive

Laughing: Stress Relief and Just Plain Fun

Research has shown that the health benefits of laughter are far-ranging. Studies so far have shown that laughter can help relieve pain, bring greater happiness, and even increase immunity.

Only a Few Days Left.....

To attend the March 8th seminar with Harvey hosted by the Middlesex Chamber of Commerce. This free seminar will cover "Increasing Efficiency and Productivity Within Your Organization."

For more details:
http://www.middlesexchamber.com/CWT/External/WCPages/WCEvents/EventDetail.aspx?EventID=364

Register now at: http://www.middlesexchamber.com/External/WCPages/WCEvents/EventResults.aspx?Category=Seminar&Keyword=&MonthNumber=0&FromSearch=True

Discussion Forums

Have you joined the Sage Discussion Forums? What are you waiting for! The mission of this community is to enable all Sage ERP MAS customers to share,learn, and support each other on a broad spectrum of issues and interests. This is your community. Join a discussion, read a blog, share in the exchange of ideas and best practices.

Register now at http://community.sagemas.com/

Winter Trivia

Check out our Winter newsletter. The trivia question has still not been answered. Be the first person to get us the correct answer and you can win!

http://www.cmsct.com/1quarter.pdf

Sage Summit 2011 - July 12-15

Sage Summit is the conference for Sage customers and partners. It’s the single best event of the year for connecting with and learning from a diverse community of peers, product experts, and industry thought leaders.

With more substantive learning, more meaningful networking, and more concrete takeaways for your business, this year’s conference provides greater value than ever before. There’s no better place to learn tips, techniques, and proven tactics that can be implemented right away. Plus, we’re pleased to offer economy-busting conference rates and discounts that meet or beat the rates from our previous partner and customer conferences.

Visit www.SageSummit.com for details.

Register Today!

Registration is open to attend the March 8th seminar with Harvey hosted by the Middlesex Chamber of Commerce. This free seminar will cover "Increasing Efficiency and Productivity Within Your Organization."

For more details:
http://www.middlesexchamber.com/CWT/External/WCPages/WCEvents/EventDetail.aspx?EventID=364

Register now at: http://www.middlesexchamber.com/External/WCPages/WCEvents/EventResults.aspx?Category=Seminar&Keyword=&MonthNumber=0&FromSearch=True

March 8th - Middlesex Chamber Guest Speaker

March 8th from 8 am to 10 am.

The presenter will be Harvey N. Payton, Executive Vice President of Computer Management Services, LLC. Located in Westbrook, CT.

The seminar title will be Increasing Efficiency and Productivity within Your Organization.

The seminar description:
Is your current business management system working for your organization? Would you like to achieve a higher level of efficiency and productivity for your company? It may be easier than you think. As the leading Sage Software consulting firm in New England, we have had the privilege of helping companies like yours implement business management solutions that have propelled their companies forward and ensured their continued success.

Let’s analyze if your current software is working to the fullest potential for you and staff. Let us determine a system out there that can address every aspect of your operations saving your significant time and money, whether your industry is Distribution, Manufacturing, Finance, or Sales and Marketing.

Learn what will give you the competitive advantage that can make the difference between surviving and thriving.

If you are interested in attending you can call us at 860.399.4215 x.216 or e-mail us at lmaxwell@cmsct.com.

Inside Story: Harvey Payton

Check out "A Few Minutes with...Harvey Payton, from Computer Management Services."

http://www.swktech.com/newsletters/swk/10-11/a_few_minutes_with.html

Tax Relief Act

The Tax Relief Act of 2010 (TRA 2010) makes a major change in the withholding of social security taxes from employees' wages by reducing the employee share of social security tax from 6.2% to 4.2% for the first $106,800 of wages paid in 2011. The maximum that can be withheld will be $4,485.60, a $2,136 decrease from the 2010 maximum of $6,621.60.

The IRS is asking employers to update their payroll systems as soon as possible, but not later than January 31, 2011. For any social security tax over-withheld during January because of the rate change, employers should make an adjustment in employees' pay as soon as possible, but not later than March 31, 2011.

The benefits that are recorded by the Social Security Administration for employees will be unchanged by this new reduction in rate. It is still unknown if this reduction in rate will be extended past 2011. Tax returns (Form 941/943/944) are expected to be revised, but the IRS has not released any details as of yet.

The IRS released Notice 1036, December 17, 2010, which contains the percentage method tables for federal income tax withholding from wages paid in 2011. Again, the IRS is asking employers to update their payroll systems as soon as possible, but not later than January 31, 2011.

Notice 1036 is posted on the IRS website for further details: http://www.irs.ustreas.gov/newsroom

Happy 2011

How exciting! It is the start of a New Year. The possibilites and challenges we face for the year ahead are unknown and unlimited as to what you can achieve in 2011. What a great time to make that fresh start and focus on your goals. All of us at CMS wish you the best of everything this year. Health, Happiness and much Success!