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.
Tuesday, December 6, 2011
Tuesday, November 29, 2011
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.
Friday, November 18, 2011
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.
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.
Tuesday, November 1, 2011
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.
Thursday, October 13, 2011
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.
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.
Wednesday, September 28, 2011
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.
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.
Tuesday, September 6, 2011
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.
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