Payroll formulas are used to calculate federal, state, or local payroll deductions, additions, or exceptions. They can contain limits, percentages and gross pay adjustment tables.
You must subscribe to one of the Sage Business Care plans to use and set up payroll tax formulas within Sage 50.
Sage 50 uses two types of tax formulas:
- Sage-Maintained Formulas: These are pre-defined formulas containing federal, state, and some local tax calculations maintained by subscribing to Sage Business Care or a monthly subscription.
- User-Maintained Formulas: These formulas contain local and customized calculations that you maintain. Typically company formulas include state unemployment rates, 401(k) contribution scenarios, accrued vacation formulas, and so on.