The following changes have been included in the December 31st, 2010 update:
- Printing of 1099’s with the 2010 format
- Printing of W2’s with the 2010 format
- 2011 social security tax law change processing
Once you’ve installed the update, keep the following in mind:
- Do the W2 extract before you enter the new social security tax rate. If you’ve already entered the new tax rate and must rerun the W2 extract, set the percentage back to 6.2%, run the extract, and set the percentage back to 4.2% after you’ve finished
- On the social security deduction record, which is deduction record number one, set the employee’s percentage to 4.2%, and leave the employer’s percentage at 6.2%.
- The processing of W2’s and 1099’s is the same as last year. You must have the current update loaded before you do the actual printing of the 1099’s and W2’s. It’s OK if you ran the extract prior to the loading of the current update.
- This is the link for Notice 1036, from the federal government, laying out the new tax rates. Please use this link for reference when you’re entering the new Tax Table 7
- Remember that when you enter the new Tax Table 7, start from the bottom and work your way up. The table in our software contains more entry lines than the table in Notice 1036 uses, and the unused lines must be at the top of our table, filled with zeros.