PBS Payroll Year-End Updates for V.12.02
PBS Payroll Year-End Updates for Version 12.02 will be available within a couple of weeks. Installations will be scheduled after the software is released. These updates include the following year-end enhancements for Payroll:
W-2 Magnetic (electronic) Media Reporting for 2012
Changes have been made to comply with the new specifications for the RA, RW and RT records used for the W-2 magnetic media year end reporting.
Medicare tax for 2013
PSI is implementing the Additional Medicare Tax which goes into effect January 1, 2013. The Additional Medicare Tax applies to individuals’ wages, other compensation, and self-employment income over certain thresholds; employers are responsible for withholding the tax on wages and other compensation in certain circumstances.
Payroll runs using this check date or beyond will be affected by the programming changes when the employee qualifies. There are no Payroll settings to change for calculating the Additional Medicare Tax.
PSI has added an option allowing employers to offer a Roth 401(k) plan. Most current 401K plans contain a Roth 401(k) option. This new option enables an employee to choose how they wish to allocate their retirement plan contributions between a regular 401(k), plan which is a before tax payroll deduction, and the Roth 401(k) plan option, which is an after tax deduction. The former defers income tax until retirement when withdrawals from the plan are subject to income tax, while the Roth plan withdrawals are not subject to income tax, including the capital gains portion.Important note: Changes related to Pennsylvania Act 32 and the New Jersey printing of three other state taxes are available for PBS Version 12.02 only, and are no longer supported on PBS 12.00/12.01. PBS customers who have PA Act 32 installed or New Jersey other state tax must update to PBS v12.02 in order to apply the 2012 YE Update.
As a reminder, PSI will no longer provide Year-End Updates for PBS Version 11, so please move to PBS Version 12.02.