Sage 50 2022 Payroll Tax Update Guide

Updated On: December 18, 2025 12:09 pm

Sage 50 2022 is a comprehensive payroll software solution that helps businesses efficiently manage their taxes and reporting. In this article, we will go over the Sage 50 2022 Payroll Tax Update and how it can help streamline your payroll operations.

Because of the unmatched spectrum of functionality and useful tools embedded in it, Sage 50 is widely popular, both among the business owners and accounting professionals. This accounting platform has been making sustained efforts to address the varied accounting needs of the users.

You may have experienced that payroll processing has become increasingly complex these days as the tax tables are getting revised rather too frequently. Paying the employees accurately and timely has been quite a challenge for the employers, to say the least. But, your worries are about to be over. To make life easier for you, Sage 50 has come up with some important tax updates in its highly improved payroll module.

If you are yet to install these updates and are not aware of how they can help you, you are definitely missing something! You do not need to worry though! All you need to do is to go through this blog till the end. Here, we will tell you how to install Sage 50 2022 payroll updates on your system. Simply implement the steps mentioned in this blog and enjoy the enhanced payroll features of Sage 50 2022.

Here we go!

Also Read: Unable to Use the Sage Payroll Module Except for Batch Group par Cheque

How to Install the Sage 50 2022 Payroll Tax Updates through Automatic Updates?

It’s pretty simple and straight forward to install Sage 50 2022 payroll tax updates through automatic updates. If you are already using the payroll module of the Sage 50 2022 edition, you will receive a notification whenever a latest update is released. However, before proceeding with installation of these updates, you need to keep the following points in mind :-

• Make sure to take proper back up of your critical company data.
• Note the exact location of your current payroll data.
• Select a suitable location in your system for saving the updates.

Now, you are ready to Install Sage 50 2022 Payroll Tax Updates:

Here are the steps to follow :-

• Open Sage 50 2022.
• Open the button for the relevant tax year.
• Log in to the payroll module.
• Navigate to the menu bar.
• Click the Help button.
• Now select the System Information button.
• Create a link note for the data directory as the payroll data location.
• If the data directory path includes a C drive path on your local system, the payroll data is located in the system.
• If the data directory path includes a mapped network drive/path, the payroll data is located in a network.
• Note down the link of the program directory where the Sage payroll software is installed.

Also Read: How to Fix Sage 50 2022 Crashes When Exit Out of “Maintain Employee” Window?

How to Download and Install the Sage 50 2022 Payroll Tax Updates Manually?

 Please Follow the Steps Below :-

• Navigate to Reports And Forms.
• Click Forms.
• Select Tax Forms.
• Open Payroll Tax Forms.
• Open the tax form of your choice.
• You will now be prompted to install the tax updates.
• Click the tab named Download Updates.
• After the download gets completed, click on Run Update.
• The installation of the latest Sage 50 2022 payroll tax forms will start.
• You will receive a prompt asking you if you want to overwrite existing files. Click Yes to All  to proceed further.
• To complete the installation, follow the instructions on screen.

Also Read: How to Fix Sage 50 1099 Tax Filing Issues?

Sage 50 Payroll Tax Update 2025

A new payroll tax update for Sage 50—U.S. Edition (versions 2024.0 and 2024.0.1) is now available, it is released on July 10, 2025. This release includes important State and Local Tax changes.

Download and install

Note: Sage Hosted users do not need to install this update—it will be applied automatically on July 15, 2025.

When you close Sage 50, a notification will appear letting you know an update is ready to install once it has been delivered. The payroll tax update version is 20250701.

To verify the update has been applied:

1. Open your Sage 50 company.
2. Go to Help > About Sage 50 Accounting.
3. Verify that Tax Update version 20250701 is installed.

What’s New

State and Local Tax changes:

• Alabama Overtime Pay Exemption Expiration
  • Alabama’s overtime earnings income tax exemption ended on June 30, 2025

• Georgia State Income Tax 
• Idaho State Income Tax 
• Maryland State Income Tax
• New York Paid Family Leave 
• Oregon Lane Transit District (LTD) 
• Oregon TriMet Transit District (TM) 
• Pennsylvania – City of Philadelphia (Non-Residents) 
• Pennsylvania – City of Philadelphia (Residents) 
• Utah State Income Tax Virginia State Income Tax

How to install payroll updates?

• Check for updates within the program
• Go to Services → Check for Updates.
• Click Check Now.
• Select Download.
• Important: If the Download prompt does not appear:
• Close Sage 50.
• Right-click the Sage 50 program icon.
• Select Run as administrator.
• Then go to Services → Check for Updates again.
• Close Sage 50 to start the installation.
• Follow the on-screen instructions to complete the update.

Install the tax update manually

• Press Windows + E to open File Explorer.
• Browse to your data path folder.
• Open the Updates folder inside the data path.
• Locate the tax update file.
• The file name format is: Tax + [Payroll Year] + [Month] + _Release[Version]
  • Example: Tax2025Jan_Release2024.exe → January 2025 tax update for Sage 50 US Edition version 2024.
• Double-click the file to run the update.
• Follow the on-screen prompts to complete the installation.

2025 State Unemployment Wage Limits

State	Employee Annual Wage Limit	State	Employee Annual Wage Limit
Alabama	8,000	Montana	45,100
Alaska	51,700	Nebraska	9,000
Arizona	8,000	Nevada	41,800
Arkansas	7,000	New Hampshire	14,000
California	7,000	New Jersey	43,300
Colorado	27,200	New Mexico	33,200
Connecticut	26,100	New York	12,800
Delaware	12,500	North Carolina	31,400
DC	9,000	North Dakota	45,100
Florida	7,000	Ohio	9,000
Georgia	9,500	Oklahoma	28,200
Hawaii	62,000	Oregon	54,300
Idaho	55,300	Pennsylvania	10,000
Illinois	13,916	Rhode Island	29,200
Indiana	9,500	South Carolina	14,000
Iowa	39,500	South Dakota	15,000
Kansas	14,000	Tennessee	7,000
Kentucky	11,700	Texas	9,000
Louisiana	7,700	Utah	48,900
Maine	12,000	Vermont	14,800
Maryland	8,500	Virginia	8,000
Massachusetts	15,000	Washington	72,800
Michigan	9,000	West Virginia	9,500
Minnesota	43,000	Wisconsin	14,000
Mississippi	14,000	Wyoming	32,400
Missouri	9,500	Puerto Rico	7,000
		Virgin Islands	31,000

Final Words

We hope the steps mentioned above would help you install the Sage 50 2022 payroll tax updates on your system. If you are experiencing any difficulties in carrying out the above-mentioned steps, we would recommend you to take help from the experts.

Frequently Asked Questions: