The IRS has released the payroll tax table updates for 2018, and REALedger tax table updates are now available. If you have already updated the tax tables manually, you do not need to install this update.
You may wish to review Notice 1036 from the IRS, as it contains contains the new tax rates. The FICA and Medicare rates did not change except for the FICA ceiling, which has increased to $128,400; we recommend that you search for “FICA limit 2018” and visit the Social Security Administration website to verify.
- If you wish to review IRS Notice 1036 (recommended), download it here: IRS Notice 1036
- Download TaxTable_Update_2018.exe to any computer where REALedger Access is installed.
- Unblock the file if Windows blocked it (right-click the file name, select Properties, if there is an Unblock button or checkbox, click it, then Apply, then OK).
- Run TaxTable_Update_2018.exe. If you get prompts from Windows or anti-virus programs, enter credentials or contact your IT administrator if you don’t have this information.
- Click Next on first screen.
- Browse to folder that contains REALeger data, which is typically on a network drive. To verify the location of database, look in REALeger under System >> Maintenance >> System Information; if that just shows #Name, right-click the REALeger shortcut and select Properties. In the Target property near the middle will be a section that starts with /wrkgrp, the text after /wrkgrp will be the folder where real.mdw file is located. Click Next.
- Click Finish
To verify that the new rates are in place, login to REALeger and go to Payroll >> Maintenance >> Non-withholding Tax Rates (FICA etc). The Calendar Year should say 12/31/2018 and the FICA Ceiling should be 128,400. You can also look in Payroll >> Maintenance >> Withholding Tax Table to verify that all the numbers changed from 2017. It will be easier to look at the %, which should be 0%, 10%, 12%, 22%, 24%, 32%, 35%, and 37% reading down the columns. You don’t need to check every pay frequency; if one got updated they all got updated.
An Emphasys technician is available to perform this task for you for a fee of $125. If you require assistance, please contact us at 888-661-6600.