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2014 Payroll Tax Table Update Instructions
(Effective December 24, 2013)
READ THIS FIRST!
Assuming that you are on Version 7.4 (or higher) with the latest updates for the Infinity POWER Payroll module, the mandatory programming change for the separation of FICA calculations for Employers at 6.2% verses Employees at 4.2% for 2012 has officially “expired” in 2013. In 2014, it will continue to be 6.2% for both Employers and Employees. Plus, the mandatory change for “Medicare Tax” for those Employees earning more than $200,000 is built in to this update as well.
If you are running any software version lower than “7.4” and have not upgraded yet, YOU NEED TO UPGRADE NOW! Infinity POWER Payroll Version 7.4 (of higher) program will automatically “revert” back to the 6.2% rate for both Employers and Employees automatically by simply changing your “system date” to any date within the current calendar year “2014.”
The Internal Revenue Service (IRS) recently issued their final policies for 2014 based on the President signing the new bills from Congress. The latest DP/Update available NOW will provide for all of the latest changes issued by the IRS, including an increase in an Employee’s Primary Exemption being raised from “$3900” to “$3950” for 2014.
The “Social Security Limit” in the Payroll Master Configuration must be raised to $117,000.00 as shown on the following screen in the Payroll Configuration. You must change this manually. You must update your software to the latest version of Infinity POWER (Version 7.4) to get this update using the “DP/Update” feature from within the software.
Otherwise, if you are on Version 7.3, you will need to download a special update utility which may be found directly from the front page of the Data Pro Accounting Software web site at the following link:
By scrolling down the document about seventy five percent of the way, you will find a direct link right above the “State Listing” of the latest tax changes for 2014:
This utility will work for both Version 7.3 and Version 7.4 users. The “DP/Update” utility found within the software will only function for users that are currently on Version 7.4 or higher. If you are not on Version 7.4 and are eligible for a free upgrade, you may login to the Data Pro web site with your “User Login” and “Password” and download the latest upgrade by following these steps.
Go to www.dpro.com. Click on the “User Login” button at the top right section of the web site.
Enter your “Customer Number” and “Password.”
If you can’t remember your password, click on the link “I forgot my password.” It will prompt you to enter your Customer Number and it will send the password to the main “e-mail address” stored on your customer record. If you entered it correctly, your “Company Name” will be displayed similarly to the following screen:
Next, click on the “Support” tab across the “Main Menu” at the top of the screen. Then, choose the “Download Updates” menu option from the list of available choices.
Based on what products you have purchased, a list of available downloads will be provided to you.
To upgrade to the latest version of Infinity POWER, you will need the “setup.exe” utility.
You will want to store this file on your local PC or Accounting Server. You MUST make sure you have a full BACKUP of your program and data files before you proceed. You also must have all of the “Administrative Rights” you need to proceed with the installation and know where you should be installing the latest update.
If you are unclear, you should contact Data Pro Technical Support (email@example.com) or 727-803-1550 and arrange a schedule installation meeting via a “GO TO MEETING” session so we can insure that the proper installation is done correctly.
Further, all users MUST be out of the system before you proceed!!!
Keep in mind, if you are currently processing credit cards in any other fashion other than using “DP/CHARGE” based on an older version of the Infinity POWER software, there are three things:
1) You are completely out of compliance with the latest Merchant Processing Rules and very liable under the latest PCI-DSS rules and regulations.
2) Version 7.4 removes all support for any other card processing options other than using DP/CHARGE and using PAYPROS as your “Merchant Processor.” Switching to PAYPROS as your Merchant Processor is quick, easy and saves money. All you have to do is go to http://www.dpro.com/ppiregistration/registration.asp to sign up. Plus, you have now opened up tons of exciting new features throughout all of the Data Pro software modules!
3) All current Payroll, Accounts Receivable monthly State Sales Tax Updates and other regular update options using DP/Update only work through the software if you are using a version of Infinity POWER that is Version 7.4 or higher. Version 7.3 users and below don’t have support through the “DP/Update” utility.
Current Version 7.4 users can simply go to “Help” from within the Graphical User Interface (GUI) version of Infinity POWER to find the option “Check for Updates.” This menu option calls the DP/Update utility that instantly checks the Data Pro Accounting Software servers for the latest updates.
For instance, most states release their latest tax table information at different times. This means this update information becomes available at differing times. Thus, being able to just use the DP/Update feature simplifies all of your update requirements for your accounting system!
All you have to do is click on the “Check” button to see what, if any, changes have been released. Depending on how long it’s been, you may receive several updates at once, or you may get the following message at the very bottom of a list of updates. Make sure to scroll down the list to see if you get this message that is found on the following screen:
If you have completed the update already and check again, it is not unlikely to find the following message:
You can run this option as frequently as desired. Keep in mind, make sure you are NOT in the Payroll program when you “Check for Updates.” The system can’t download Payroll updates when those files are open. Instead, check it once you enter the program and haven’t loaded any specific module.
There Were No Major Changes Made to
W-2s and 1099s in 2013!
All adjustments made were only to headings and slight alignments to printing in the boxes. The 1099 and W-2 tax forms will automatically be adjusted when you use the DP/Update utility to get your Tax Table updates.
Installing the Latest Updates
The 2014 Federal Tax Tables, as well as the State Tax Tables for all states, which have reported their 2014 rates, have been updated. Please keep in mind that not all states report their updates at the same time or as timely as each other. Therefore, you may need to check back frequently to find your state in the latest DP/Update. The 2014 Payroll Tax Tables updates are now published on the DP/Update download site for Infinity POWER users on Versions 7.4x. Users on any version number that is lower than Version 7.4 MUST upgrade to meet the current Payroll requirements. Further, these updates will update the Windows versions of the Infinity POWER products ONLY! This includes both the “Windows Graphical” and “Character-Based” versions of the Infinity POWER products. However, “DP/Update” can only be run from the Windows Graphical version of the products, as shown on the screen to the right!
If you are presently on Version 7.4 or higher and have a direct Internet connection on your accounting servers or workstations, you can now choose the “Check for Updates” option from the “Help” menu within Windows Graphical version of Infinity POWER to download these files.
If you have a newer version of the Microsoft Windows Operating System (i.e. Windows 7 or Windows 8), you may be prompted by the system as to whether to allow the software to download the update from Data Pro Accounting Software. If you are prompted by a button that appears at the bottom of screen flashing, click on it and answer Y(es) to continue the DP/Update feature.
As the update continues, the screen will display all of the updates for each software version in date sequence order for each update as it has been released. Therefore, the information shown on the following screen for Version 7.44, for instance, may appear further down in the update listing rather than directly at the top of the screen, based on whether you have completed any updates previously. You can scroll down to insure you have the latest update information to be posted to your system.
Click on the “Update” button to start and when completed successfully, the following screen will appear:
Click on the “Close” button to proceed. The DP/Update option only gets the files from the Data Pro Server to your local system. It hasn’t installed them into your accounting system yet! Therefore, you will need to run the Payroll option “Update Tax Table From Master File” from the “Set Up and Maintenance” Payroll menu. If you have a prior version of the product before Version 7.4, you will need to upgrade first to Version 7.4 (current version) before proceeding!
This option is what updates your actual Payroll Tax Table Files on your local accounting system.
Users still have the option to input their table changes manually by using the Percentage Method of Withholding Tables in the Circular E published by the IRS for Federal Tax Tables and/or the State Tax Tables released by your state using the menu option “Set Up Tax Tables.” Be sure to use the “Annual Tables” if you are inputting the tables manually.
You will know that your files have been updated correctly if you go into the “Set Up Tax Tables” menu option and enter “FED” and see the following options appear on the screen:
You will see how the Federal Tables for “Federal Married” and “Federal Single” both appear with “2014” behind them. That confirms your update has worked properly.
Likewise, when your state tax table update has been implemented correctly, you will see it changed from 2013 to 2014 as you see for the “Florida” tax table. Keep in mind that you still must go into your “State” table manually and adjust for each year the “Unemployment Tax Rate” that the State you reside in assigns your company. This is always a moving target and will change from year to year. Don’t forget to make this change when you update your tax tables.
One last thing to keep in mind, this update is released as of December 24, 2013. However, it is now updating the Federal & State Tax Tables to represent the changes for 2014! If you have any remaining Payroll cycles that you need to run prior to January 1, 2014, then you need to wait before you perform these updates!! You will want to keep your current 2013 Tax Tables and rates in place for any remaining Payrolls to be completed in 2013!
***MICROSOFT SQL SERVER USERS***
If you have installed the Microsoft SQL Server database as your core database structure to be used with your Infinity POWER software applications (instead of FoxPro or dBase), the preceding option that allowed you to download the Payroll Tax Tables using the DP/Update option will have the files in the native “dbf” file format.
For SQL Server users, the “dbf” file format must first be converted into an SQL format before the Tax Tables in Payroll can be updated. Data Pro provides a standard utility with the Infinity POWER software programs that allows data files to be converted in both directions (dbf to SQL – SQL to dbf). Follow the next set of steps to prepare the Payroll Tax Table update for use in an SQL Server environment.
Using “Windows Explorer,” go to the directory or folder where your Infinity POWER accounting applications are installed. This could be C:\POWER or another directory depending on how the software was originally installed.
Inside this folder, you will find on the list of files a file called “CBSQLCvt.exe” as highlighted on the following screen:
Double click on this file and the following application will load as shown on the following screen:
Click on “File” and choose the first option for “CodeBase To SQL.” This is the option that will convert a “dbf” file to the SQL file format.
A new screen will appear prompting you for key pieces of information. First “Browse” under the “Directory” option to where your Infinity POWER programs are installed. This can be on any network or local drive letter and in any subdirectory or folder name as appropriate.
Next, enter under the “Company” field the three letters “SYS.” These are for the system files that have been just downloaded by the DP/Update utility. Then, under the option “Select Listed Files to Convert” scroll down until you find the file specifically titled “SYSPR5.DBF.” Make sure the rest of the files are “Unselected.”
Under the “Conversion Options,” click on the check box to “Confirm Overwrite.”
When all of this is set as the following screen illustrates, click on the “Process” button to continue.
Once you click on “Process,” the following screen will appear:
Click on “Yes” to continue the conversion to the SQL format
Once the files have been converted, the following screen will appear:
Click on “Close.” Now that this step has been completed for SQL Server Users, the rest of the steps are identical for ALL users regardless of which database is being used.
If you have recently upgraded to Version 7.3 or higher from a version prior to 6.3, you must verify each employee’s First and Last Name under the W-2 Info button under the “Set Up Employees” option in Payroll under the “Set Up and Maintenance” menu option. The POWER Upgrade Utility will attempt to parse the existing name field into the new First and Last Name fields. Depending upon the format of your employees’ names, adjustments may be necessary.
How to Update Your Tax Tables
Note: Do not load these tax tables until the last 2013 Payroll has been processed, backups of all program and data files have been made, and all required management reports have been printed. Tax table information should be updated just before the first 2014 payroll is run.
Once the 2014 Tax Table Updates have been loaded on your system UANDU after you have started the New Year’s files for Payroll, follow these simple steps:
Note: Do not load these tax tables until the last 2013 Payroll has been processed, backups of all program and data files have been made, and all required management reports have been printed. Tax table information should be updated just before the first 2014 Payroll is run.
Once the 2014 Tax Table Updates have been loaded on your system UANDU after you have started the New Year’s files for Payroll, follow these simple steps:
Repeat these steps for each company that has Payroll data files. Be sure to verify your company’s unemployment tax rate for 2014 and adjust the appropriate state tax table(s) as shown in the following example. Make sure to use the rate sent to your firm by your state for 2014.
Remember to check the Federal tax tables against your Circular E and State Tax Tables with your State Tax Table Publications. In the Windows Graphical version, to edit or verify either the Federal or State Tax Tables while in the Payroll module, choose the option “Perform Routine Maintenance.” Then, choose the option “Set Up Tax Tables.” Select the specific table to review or edit. The following screen will appear:
When you click on the “Change” button and then the “Details” button on the bottom left of the screen, the following screen will appear that will allow you to edit the specfics of the tax table.
In the Windows Character-based version of the product, the details for editing are all on a single screen as shown in the following example.
For your records, this is what the Federal Tax Tables should look like at this point for 2014.
FICA Update Procedures (Windows GUI)
The Federal Government has changed the Social Security tax limit to $117,000 for 2014. To verify that your configuration is correct, follow these steps:
Click “OK”, to save your changes. Repeat these steps for each company that has Payroll files.
For Character-based users, follow these steps:
Social Security Tax %
When you perform the DP/UPDATE feature to get the latest software update, you will find it to be quite simple and will require NO Configuration of the software whatsoever. For example, if your system date is set prior to 01/01/2011 or after 12/31/2012, you will see and be able to edit the Social Security Tax Percentage rate field and the system will apply it to both the Employee and Employer portion of FICA.
The following screens illustrate how the Payroll Configuration screen looks in both the Windows Graphical Version as well as the Character-based Version of the Infinity POWER products. The current rate for both Employer and Employee is 6.2% and goes in the “Social Security Tax %” field as shown. No other fields are adjusted.
If your system date is set from 01/01/2011 to 12/31/2012, then you will NOT be able to change the Social Security Tax % field whatsoever. The software update does not allow any edits to the field as the programming change is “hard-coded” into the software and is “date sensitive.” The system automatically calculates the Employee’s tax rate at 4.2% and the Employer’s tax rate at 6.2% if the system date of your computer is set within this date range. Once you set your date to 01/01/2013 or higher, it reverts automatically to 6.2% for both “Employee” and “Employer.”
State Tax Table Updates
Data Pro Accounting Software updates the various states’ tax tables as soon as their information is released. Unfortunately, many states do not release their annual changes prior to year end when we release all of the other Federal and other state changes.
Keep checking the DP/UPDATE feature of your software and the home page at www.dpro.com for the latest updates on the various States Tax Table update releases.
****Be sure to verify your company’s unemployment tax rate for 2014 and adjust the appropriate state tax table(s) as shown in the following example. Make sure to use the rate sent to your firm by your state for 2014.
The master Payroll Tax Tables were updated for the 2014 Federal Tax and also all “States” that have reported changes as of this date have been updated. This list will continue to be updated as additional states continue to provide their new information for 2014.
The following is a list of states that have already been updated:
Last Updated 12/31/2014 5:00 PM EST Click here for 2014 Tax Table Update Instructions (PDF Version)
Tax Table Changes By State
Remember to check the Federal tax tables against your Circular E and State Tax Tables with your State Tax Table Publications. Should you have any problem or questions, please call our Support Services Department at (727) 803-1550, Monday through Friday 9:00 A.M. to 5:00 P.M. EST.
For information on W-2 and 1099 Tax Forms, view 1099/W2 Tax Form Tips & Instructions (PDF)
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