If you’re interested in an upgrade to Sage 50 2021, then you will find this blog article useful. This is the final article in a 3 part blog series, where we’re discussing what’s new in Sage 50. In the first two articles, we highlighted the below-mentioned feature updates in Sage 50 version 2021:
- Memorized purchase invoices / Vendor bill update
- Enhancements to task windows, lists, and other program areas
- Improvements to list windows
- Updates to in-product messaging
- Gmail security update
- Sage ID Integration with Sage 50
- Enhanced functionality for Remote Data Access and
- Auto-Entry with Sage 50 that automates your AP entry.
Click on the links below to get an in-depth overview of these updated Sage 50 features.
Now, lets look at the following Sage 50 features:
- Expanded pay type fields and
- Easier wage reporting on Federal Form 941.
Expanded pay-type fields
In previous versions of Sage 50, you were limited to a fixed number of pay types for your hourly and salaried employees. Starting in Sage 50 version 2021.1, you can now set up an unlimited number of pay types for hourly and salaried employees.
Adding Pay Types
1) Pay types are initially set up when you first run the payroll setup wizard in Sage 50. To add more payroll types in your Sage 50 accounting software simply click on Payroll Setup and then Payroll Settings.
2) Next click on Company Information and then Pay Types to add more hourly and salaried pay types to the system.
3) Then click on the Add Hourly Pay Type or Add Salary Pay Type buttons to add additional pay types in the system.
Enabling Pay Types
- To enable pay types, click on the Pay Info tab on the Maintain Employees and Sales Reps window. (New pay types must be enabled for each employee before they show up on the Paycheck windows.)
2. For your hourly employees make sure you enter a value for the different pay types you will use to pay your selected employee. This will allow you to use these pay types on different payroll entry windows.
3. As of Sage 50 version 2021.1, salary pay types that do not have an amount associated with them will not display in the Employee Payroll windows.
4. If you usually wait to enter salary amounts for different salary pay types when you process payroll, then make sure to uncheck the ‘Use Defaults’ setting for each pay type you would like to use for each salaried employee. This will force the salary pay type to show up in payroll entry windows, even if there is no amount associated with that pay type.
5. While you can have an unlimited number of payroll types for employees, you are limited to 20 active payroll types per employee at any given time. If you do try to enter more than 20 payroll types per employee, you will get an error message in Sage 50.
6. You can use different pay types for each pay period. So if you have 20 pay types enabled for an employee, but need to use a different one for the next pay period; simply zero out the pay types that you don’t plan to use during the next pay period, and enter amounts in the pay types that you do plan to use.
Please note: Payroll reports like the Payroll register will report all the payroll types that were active for an employee during the payroll year.
See more details about the Sage 50 expanded pay-types here.
Easier wage reporting on Form 941
In 2020 a COVID-19 payroll app was available for download from the Sage knowledgebase. The app helped you calculate the total wages paid to employees using pay types specific to COVID-19 and the FFCRA. The calculated paid sick leave and family medical leave wages were then manually entered on the revised 941 forms on lines 5a(i) and 5a(ii). Since the release of Sage 50 version 2021.1 the COVID-19 Payroll app now directly integrates to your 941 report in the Sage 50 system. This means less room for manual data entry errors.
When you’re ready to print your Form 941, click the Forms icon and then select Federal Forms.
Then select the Form 941 from the list, pick the correct year and quarter and then click okay.
You will see a new pop-up window open on your screen.
If you did not pay Sick Leave or Family Leave to any of your employees, then select No. Simply continue processing your Form 941 as normal.
Select Yes if any of your employees were paid Sick Leave and/or Family Leave as part of the special pay defined in the First Families/COVID-19 Response Act (FFCRA).
Next, identify the different pay-level types you used to pay your employees qualified sick leave and family leave wages.
Both hourly and salaried pay types are included in this list.
When done, click Next and the 941 form will display with the COVID 19 payroll information.
Sage 50 will prompt you to fill out Worksheet 1.
Additionally, you will be prompted to manually reduce your liabilities on Page 2 or Schedule B if you have non-refundable credit amounts on Lines 11b or 11c.
Click ok and the calculated paid sick leave and family medical leave wages will be automatically entered on the revised 941 forms on lines 5a(i) and 5a(ii).
Have questions about an upgrade to Sage 50 2021?
We’ve got answers. Contact CTO Associates to schedule your complimentary Sage 50 Consultation today. Schedule your call here, or call us at 413-367-9202 to get started. We look forward to assisting you.
About CTO Associates
Whether you’re looking to restructure your accounting operations, resolve inventory issues, quit using MS Excel spreadsheets for reporting; find a replacement for your old accounting system, or upgrade to Sage 50 2021, we’d love to talk with you.
Our team has combined experience of over fifty years in a wide variety of industries. We have a CPA, a senior financial consultant with a background in international operations and financial analysis. We also have experienced bookkeepers and consultants to assist your growing business.
At CTO Associates, we provide accounting and manufacturing software solutions to manufacturing, distribution, and service businesses. We have clients in MA, CT, NY, and across the US. We look forward to connecting with you soon.
Read more about CTO Associates here.