Sage Abra Q4 2010 Quarterly Tax Updates expected to be delivered the week of December 27th
This Alert applies to Abra Suite and Abra SQL HRMS with Payroll
The Federal Government released 2011 tax rates as of Friday Dec 17th. In response to this release, Sage Abra Q4 2010 Quarterly Tax Updates are delayed and are expected to be delivered the week of Dec 27th. This delay is necessary to incorporate the federal tax rate updates in Q4 which will minimize customer confusion and avoid the need to apply a hot fix after the Q4 update has been delivered.
The Q4 2010 Quarterly Product Update for Abra Suite 7.7x, 7.8x and 9.0x, as well as, Abra SQL HRMS Payroll 8.5, 10.0 and 10.1 will contain the Social Security employee tax rate changes per the legislation passed and signed by President Obama on December 17, 2010. The full extent of this change is described as follows:
Under The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which was signed by President Obama on December 17, 2010, the employee’s share of Social Security tax in 2011 will be reduced from 6.2% to 4.2%. Therefore, the maximum an employee would pay in Social Security tax (if the employee is paid at least the wage base of $106,800) is $4,485.60. Employers would continue to pay the full rate of 6.2% for a maximum of $6621.60 on at wage base of $106,800 for 2011.
In addition we are delaying the release to address the following:
- Employee Tax Rate for Railroad Tier 1 Reduced, Effective January 1, 2011
- Employee Tax Rate for Social Security Reduced, Effective January 1, 2011
- Federal Withholding Tax Changes, Effective January 1, 2011
All other tax items addressed in Q4 are documented in the Release Notes. Upon availability, both Sage Abra Suite Payroll customers and Sage Abra SQL HRMS Payroll customers will receive an alert notifying of availability to download the tax update from Support Plus Online.
Visit SupportPlus Online at http://www.SageAbra.com/support.aspx/