Update Tax Tables

What's covered in this section:

• Updating tax tables
• Installing the year-end update
• SSA Upper Limits for 2004

Update Tax Tables/Year End Update

IMPORTANT: Tax tables are automatically updated when you install the Year-end Update.

The tax tables provided by Aatrix are based on computer formulas provided by the Federal and State governments, thus you may find slight differences between the program's calculations and the Estimating Table the government uses. All the tax calculations are based on annualized computer formulas.

How do I get the year-end update?

You get the Year-end Update on CD or via download from the web when you purchase or renew your Tax Table subscription with Aatrix. If you have not purchased Tax Tables or renewed your subscription, please call Aatrix Sales at 1-800-426-0854.

Installing the year end update

Installing the Year-End Update automatically updates:

• Payroll Tax Tables
• Employee Paid Social Security and Medicare deductions
• Employer Paid Social Security and Medicare Contributions

The pay history of your employees can be stored in your payroll program. This means:

• You do not have to purge data until you no longer need your employee payroll data
• You can install the 2005 tax tables and process 2005 payroll without affecting your 2004 pay history.

You must install the Year-End Update after processing your last payroll for 2004, but before processing your first payroll for 2005.

Installing the Year-end Update

1. Back up your payroll data using the File > Backup command.

For more information, please see Backing Up Data .

2. Print the following reports for 2004.

• Pay History Detail report for 2004 (Include Totals).
• Pay History Summary report for 2004.
• Any other custom reports you need.

3. Install the Year-end Update.

Refer to the Installation Instructions included with the Year-end Update package. This step automatically updates the following items:

• Tax Tables for 2005.
• Employee paid Social Security and Medicare Deductions for 2005.
• Employer paid Social Security and Medicare Contributions for 2005.

You must manually update your SUTA rates and upper limits.

Social Security 2004 Upper Limits

The Upper Limit for Social Security is $90,000. Medicare has no upper limit.

4. Verify your Tax Tables updated correctly.

To do so, go to the Process Payroll tab window of your payroll application and verify that all of your payroll items are calculating.

When these tasks are complete, you are ready to process Form W2 and Form W3, discussed in the next section.