Sage 50 Payroll Tax Calculations Could not be Found

Sage 50 Payroll Tax Calculations Could not be Found

Users normally experience a ‘Sage 50 payroll tax calculations could not be found’ error during employee payroll calculation. It happens when there is an invalid selection of filling status or there is no formula in the payroll that is stated on the employee record. But don’t worry, with the help of the below-discussed solutions; for Sage 50 incorrect payroll taxes calculation problem you can fix this error with much ease.

Reasons that lead to the Sage 50 Payroll Tax Calculations could not be found

Here is a list of some of the possible causes:

  • Product is not activated
  • The latest tax update is not installed
  • Trying to issue payroll is more than 20 days past the support plan renewal date
  • Using an obsolete version.

Read More : Sage is Not Calculating the Income Tax Deduction

Solutions to Fix Sage 50 Payroll Tax Calculations could not be found

There are various ways to resolve this error depends on the error message or the functions that you are not able to find. Here are some of the solutions:

Solution 1: If the Error indicates that SIT, FUTA, FIT, FICA, or MEDICARE Formulas could not be found

  • Initially, go to the “Help” menu and then select the “About Sage 50 Accounting” option
  • Next, confirm that the installed Tax Service lists a current year, example- 201200301
  • Now, go to the File >> Payroll Formulas >> Sage-Maintained Formulas
  • Confirm that the formulas for the current year are listed on the Formula ID drop-down list
  • After that, go to the “Maintain” then Default information and then Employees
  • Make sure that the tax fields must be checked to calculate (Calc) on the employee’s fields tab
  • And then set to use the right formulas such as:
    • State Income Tax: **SIT
    • Medicare: Medicare
    • Federal Income Tax: FIT
    • Social Security: FICA EE
    • Local Income Tax: **LIT
  • Along with that, confirm that the tax fields are checked to calculate (Calc) on the Company fields tab
  • And then set to use the correct formulas:
    • Social Security: FICA ER
    • Federal Unemployment tax: Futa ER
    • State Unemployment tax: **SUI
    • Medicare: Medicare
  • Once you verified that then press the “Ok” button
  • Next, go to the “Maintain” section and then select the Sales/Employee Reps
  • After that, confirm that each employee record the taxes on both the company fields as well as Employee Filed must be checked to “Use Defaults”
  • Make sure that a valid filling status must be selected for State, Federal, and Local (if required) on the Withholding Info tab
  • Confirm that the State Locality must be using the right state abbreviation
  • It should be the official 2 letters postal abbreviation
  • In case, if the changes are made in the record of the employee, make sure you save it by clicking the Save button
  • And finally, try to create a payroll once again also verify that error has been resolved.

Solution 2: If starting a New Payroll Year

  • Firstly, select the Payroll Formulas by going to the File menu
  • Next, select the User-Maintained Formulas
  • Now, choose the previous year’s SUI formula from the drop-down list of Formula ID
  • After that, change the Formula ID to end with the next number in the sequence
  • Along with that change the Formula Name to add the current year instead of the previous year
  • Once done with the above then change the limit as well as a rate if required
  • To proceed further, press the Save option
  • In the end, you can try to recreate a paycheck and also check whether the error is resolved or not.

Solution 3: If the Formula does not exist in User-Maintained Formulas

  • The very first, select the Payroll Formulas by going to the “File” menu
  • Next, select the “User-Maintained Formulas”
  • Now, type XXSUI for Formula ID (Replace XX with your state abbreviation, example: GASUI)
  • Type XXSUI ER YY for Formula Name (Replace XX with your state abbreviation and YY with the current tax year abbreviation, example, GASUI ER 20)
  • After that, set Effect on gross pay to Subtracts from gross
  • And then set the Filling Status to All
  • Along with that, you have to set “How do you classify this formula” to Tax
  • Also, set Tax Agency to State
  • Choose the state with the help of the drop-menu menu
  • After that, verify that the Use this formula is set as a filter on the Payroll Tax report
  • Now, type the following in the Formula field,
    • LIMIT=0000.00; “This value pulled from Taxinfo.dat”
    • PERCENT=0.00000; “State Unemployment Rate: (%) entered by the user”
  • After that, change the PERCENT and LIMIT to the appropriate as set by your state
  • And then press the save option
  • Finally, try to recreate a payroll and also check whether the error is resolved or not.

Also Read : Sage 50 2023 Payroll Solutions Update for Release Download & Install

Final Words

So, you see users generally experience the Sage 50 Payroll tax calculation could not be found, during employee payroll calculation. This usually occurs when there is an invalid selection of filing status or no formula within the payroll that has been stated within the employee records. However, if you still have doubts regarding the same, you can visit and you are sure to have a lot of issues resolved.

Accounting Professionals & Specialized Experts

Want quick help from accounting software experts? Get in touch with our team members who can install, configure and configure your software for you. Proficient in fixing technical issues, they can help you quickly get back to work whenever you encounter an error in Sage software. Our team is available 24/7 365 days to assist you. To get in touch.

Frequently Asked Questions(FAQs)

Can you automatically Update Tax Codes in Sage 50 Payroll?

Tax code notices are sent straight to your HMRC Mailbox within Sage Payroll. It’s easy to access them and automatically apply any changes. To find out how to apply a tax code change in Sage 50 Payroll, watch our quick demo below or read more. If you use Sage Instant Payroll, take a look at our quick guide.

How can One Set up Payroll within Sage 50?

To do so, you need to:
1. Start by Verifying the Payroll tax setup defaults. Navigate to Setup > Go to Settings > Go to Payroll > Navigate to Taxes. 
2. Now Verify EI Factor.
3. Next, Change the Income names. Navigate to Setup >Go to Settings > Navigate to Payroll >Go to Incomes. 
4. Now Verify if The income names are accurate.
5. Next, Change the Deduction names: Go to Setup > Go to Settings > Navigate to Payroll >Go to Deductions. 
6. Now Verify
7. Finally, Remittance setup.

How can one enter the Payroll Transaction within Sage 50?

One can access the Payroll Entry window from within the Employees & Payroll navigation area. Now select Pay Employees and then Enter Payroll for One Employee. The user can also access Payroll Entry from within the Tasks menu bar located at the top. Finally Enter or select the employee ID linked with this payroll transaction.

Related Posts

Further Reading