Advanced Accounting 8 r11 is now available and includes 2023 payroll updates.
In addition to the usual federal changes and new OASDI maximum, over 60% of states that have state withholding taxes have made changes to their rates or withholding logic.
States with changes that have been updated within the latest versions of Advanced Accounting as well as retested include:
Some of the changes only involve withholding rate table changes (New Mexico). Some solely relate to allowance increases (Alabama).
Some of the changes that needed to be made go back to 2022 (Arkansas made changes effective October 1, 2022; Louisiana made changes effective January 1, 2022, that may have not been published until much later).
Other are much more involved including the many states that have relatively complex formulas.
In retesting these states, we have also added new logic to the "calculation" option contained with the PR-B Enter Pay Info option.
In re-reviewing the withholding instructions for each of these states, some major logical changes had to be made (such as for California and to accommodate Arkansas's unusual negative adjustments included in their tax tables).
Some of the changes still relate to the fallout caused by the 2020 federal government W-4 changes. While the new federal form no longer uses the longstanding withholding allowances that we were all used to up until that time, many states still do (calling them dependent allowances in some cases) as well as in some states also providing for "personal allowances" or in the case of California additional "estimated deduction" allowances that have different rates associated with them. It seems as though some states are still grappling with the 2020 federal changes which have in turn caused a lot of confusion for seemingly little gain and have imposed yet more burden on businesses and taxpayers in general.
While employers are required to implement these changes as soon as practical, the overall effect is often small despite the effort it takes to maintain and update them. As we reviewed 2023 test cases and in our testing in general, it seemed on balance that federal changes resulted in slightly lower withholding amounts, and that states tended to make changes that also reduced their withholding, which seemed somewhat surprising given rising costs in 2022.
We also noted that in several states, the highest brackets were changed to a lower percentage than in the prior year and that changes to those highest brackets in some cases made little intuitive sense.
Some new hints have been added in PR-A Enter/Change Employees for Colorado, California, and Arizona. Arizona is another unique state where the employees elect one of seven percentages unless claiming to be exempt, which is applied to taxable wages for its state withholding. In Colorado (going back to January of 2022 when first effective), the number of jobs needs to be entered in the state allowances field. In Arizona, the percentage multiplied by 10 needs to be entered under state allowances. In California, the number of additional allowances from estimated deductions needs to be separated and placed in the SSEx field rather than in the state allowances field. In some states, dependency credits are entered in the SSEx field. County taxes for Indiana continue to be handled as in the past but those rates have changed for 2023.
There are indications of 2023 changes in other states other than those we have specifically reviewed thus far (including Iowa, Kentucky, Maine, Maryland, Minnesota, North Carolina, North Dakota, Rhode Island, South Carolina, Vermont, and Washington DC). We will review and provide updates as time allows and based on our users processing payroll in those states, but we did not wait any longer to put out these other updates that have now been completed.
Payroll related programs changed:
PR-B Enter Pay Info as indicated above and see below
PR-D Print payroll checks - first day next pay period issue when batch posting
PR-G Print W2s and W2 History has been enhanced to remember settings previously used when submitting an e-file. Also when e-filing, an employee control number which consists of the year and employee number is now included for reference. Note: the e-filing portal is open, we qualified for the required annual testing toward the end of last year, and we have already made one e-filing for 2022.
PR-K Maintain tax tables option has been updated for federal and state rate changes along with the corresponding extensive changes to PR-B
SY-D Enter/Chg PR/GL interface ensures that the new OASDI max is validated when updating or adding a payroll division.
Adv 8 r11 includes a variety of non-payroll program updates made in November and December of last year:
SY-K-C When changing many product codes from an import file, a new clone option has been added for special situations. So when using this option the existing code is left intact.
AP-I Print Vendor General Info has been modernized and a new tab-delimited export feature added.
AR-I-A (Customer reports) Sales by Month now includes the option (as elsewhere) to use the salesperson when the invoiced was posted, which is the default, or as currently assigned when limiting to a salesperson.
IC-C-C (Product Sales/Purch Info) Top Products Sold Analysis also has the option to use the salesperson when the invoice was posted (the default) or as currently assigned when limited by a salesperson.
SO-G Post invoices now updates billings for jobs based on the invoice subtotal rather than the total that might include tax or freight (applies only to job costing)
AR-R-D Unapplied credits Report: the total of the unapplied credits generated by the report is now included.
AR-B Enter/Change Vouchers: the check fiscal function was still being limited to five years past instead of six years past as everywhere else
AP-M Enter Recurring (AP) Vouchers - building on rel. 10 enhancements and because the mouse/cursor position can inadvertently default to a different menu option than previously selected when editing a voucher in this legacy program, this option now asks whether the voucher type needs to be changed when editing an existing recurring voucher.
AP-N Generate Recurring (AP) Vouchers - building on rel. 10 enhancements, the ability to override the invoice description and invoice # (which in the past has been internally assigned by the software) in manual check/ACH situations has been added, along with a new option to limit the generation to a single vendor code (which can be used instead of or in combination with the selection code range).
For more details or to schedule an update, contact us at email@example.com or call 800-648-6258.