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New Payroll with Sage 300 ERP 2012 Product Update 1

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With the upcoming Product Update 1 for Sage 300 ERP 2012 we will be releasing new versions of Canadian and US Payroll. These now have the new names of Sage HRMS Canadian Payroll 2012 and Sage HRMS US Payroll 2012. These will be separate installations that you need to download along with the main Product Update 1. The new name is to reflect that this is the common Sage Payroll used in several Sage products (including Sage HRMS), but since this is based on Sage 300 ERP Payroll, for Sage 300 ERP users this will just appear as a new version. The benefit of sharing the Sage 300 Payroll is to pool some development resources to get further product enhancements incorporated to the core product.

There are quite a few new features across this offering, so I’ll quickly list them whether they apply to both Payrolls or just Canadian or just US.

Common Features

Payroll Tax Number: A new Tax Number field has been added to the Company tab on the Payroll Setup > Options window. You can assign a tax number for each company or database.

Common Deduction Limits: You can use this screen to associate multiple deductions based on a single limit and ensure that employee deductions do not exceed defined annual maximums. Multiple deductions can now be combined to allow a single annual maximum to be applied, removing the need for manual calculation of group limits for multiple deductions such as union dues, garnishments, and retirement plans. And of course there is a matching report.


General Ledger Accounts for Workers’ Compensation Groups: Employer expense and liability accounts from General Ledger can now be associated to a workers’ compensation group so that the expense and liability codes associated with that group post in the General Ledger batch file. With this enhancement, a complete picture is provided of the employer cost associated with each check run.

Workers’ Compensation Codes Modifications: Allow assignment of a G/L account to a Worker’s Compensation Group, and include:

Expense Account – The General Ledger expense account posts the employers’ portion of workers compensation.

Liability Account – The General Ledger liability account posts the employers’ portion of workers’ compensation.

Workers’ Compensation Transaction Reports: A new report format, G/L Transactions, lists the applicable assessment amounts of employee earnings and the amount of the General Ledger transaction, as well as the associated expense and liability accounts. This report also helps identify check details with missing G/L account associations. The Retrieve Assessments from Payroll Register option on the Workers’ Compensation report window allows processing of four new transaction reports. Existing reports have not been changed.

Transaction History:  With the introduction of workers’ compensation calculations, you can now enter any adjustments for workers’ compensation using the Transaction History window. The Transaction History window now contains additional fields needed for adjustments to workers’ compensation; the Base, Rate, and Assessment.

The Transaction History Report has been modified to include workers’ compensation information, applicable both as a total and on the employee level, detailing the employee’s earnings and the associated assessment amounts, bases, rates, and workers compensation groups/codes.

Cheque Printing Security Enhancements: Sage HRMS Payroll 2012 has been enhanced to improve security measures during the Cheque Printing and Posting process. With this update, users with security permissions that limit access to certain employees will no longer be able to print cheques for employees to which access is restricted.

Pre-Cheque Payroll Register and Payroll Registers: The Pre-Cheque Payroll Register and Payroll Register have both been modified to include workers’ compensation information when applicable, both as a total and on the employee level, detailing the employee’s earnings or hours and their associated assessment amounts, bases, rates, and group codes.

Employer Match Calculations for Timecard and Manual Check Entry: Two new fields are now available in Sage HRMS Payroll on the Timecards and Manual Checks windows. The new fields are available to allow you to temporarily change the employer contributions to the deductions during the Timecard or Manual Check entry process.

Expanded Cost Center Override: You can now define the cost center override for deductions with the Flat calculation method setting in the Earnings and Deductions setup window. Select the Cost Center Override Allocated Based on Calc Base check box on the Basic Info tab, and complete the Calc Base tab to apply the overrides. After an earning is associated with a flat deduction type, the deduction will then be allocated based on the associated earnings allocation.

International ACH Transfer (IAT): The new NACHA International ACH Transaction (IAT) rules require each transaction to be classified as foreign or domestic, allowing the depository financial institutions to identify whether the transactions meet their review requirements as outlined by the US Treasury Department. The IAT rules exist to identify the financial institution responsible for moving the funds rather than the originator or receiver of the funds. Any financial institution outside the territorial jurisdiction of the US that is involved in a payment transaction where the institution is moving the funds from the originator or receiver are required to transmit the transaction using the new IAT format.

Employee Work Location: A new tab, Work Location, was added to the Payroll Employees > Employees record window. On this tab, you can enter address information about an employee’s work location.

US Only Features

Sage Payroll Tax Forms and eFiling by Aatrix: This functionality provides updated reports and forms at no cost and enables you to fill out and file tax forms electronically for a small fee; including W-2, W-3, U.S. federal forms (941, 943, 944, and 945), U.S. state tax forms, and new hire reporting by state. The first time you sign in to Sage 300 ERP after installing Sage HRMS Payroll, Sage 300 ERP uses a secure connection to automatically register your company with Sage Payroll Tax Forms and eFiling by Aatrix.

Assign Tax to Employees: Instead of assigning taxes to one employee at a time, you can now assign a tax to multiple employees in a single operation. Selection criteria can be used to assign taxes to groups; for example, a state tax can be applied only to employees who live in a selected state.


The following new windows and reports have been added, moved, and consolidated to support Sage Payroll Tax Forms and eFiling by Aatrix:

  • New Federal Tax Filing window: You can use this new window to fill out federal tax forms for the purpose of printing or e-filing them.
  • New State Tax Filing window: You can use this new window to fill out state tax forms for the purpose of printing or e-filing them.
  • Moved 941 window: The 941 window has been removed from Government Reports, and now appears in the list of forms on the Federal Tax Filing window.
  • Consolidated W-2 Tax Filing window: The W-2s on Paper and W-2s on Disk(ette) windows have been replaced with a single W-2 Tax Filing window.

Child Support EFT: Sage HRMS Payroll has been enhanced to generate federally compliant Child Support EFT files for all states that require electronic submission to a State Disbursement Unit (SDU). A new tab, Garnishment, is available on the Payroll Employees > Employees record, which allows entry of data pertaining to a specific employee’s garnishment. The data entered on the Garnishment tab is used in the creation of EFT files using Generate EFT File while meeting Federal and State guidelines.

US Citizen Field: A new US Citizen field was added to the Class/Schd tab of the Payroll Employees > Employees record window. Selection of this option designates the employee as a US citizen.

Canadian Only Features

Support for Multiple QEIR and EIR Numbers per Employee: You can now enter both federal (EIR) and Quebec (QEIR) Employment Insurance rates for employees who are working between Quebec and other provinces. Sage HRMS Payroll calculates EIR if the Province of Employment field is set to provinces other than Quebec in the Employee record, and calculates QEIR if the Province of Employment field is set to Quebec. You will no longer have to add or remove EIR or QEIR depending on the employee’s work location.

Updated EFT Format For HSBC Bank: A new Bank format for HSBC was added in the Payroll Setup > EFT Options window.


People who are familiar with the internals of Sage 300 ERP may puzzle a bit about the versioning of this product. The official external version is 2012 like the rest of Sage 300 ERP 2012. However if you dig into the internal version numbers you will find that the main products are version 7.0A and then the Canadian tax tables are 7.0D and the US tax tables are 7.0G. So why is the version 7 when the internal version of everything else is 6.1A? The reason is that Sage HRMS Payroll is now the Payroll of several other Sage products and has its own versioning. Similarly why don’t the tax tables start at 7.0A, again the reason is that the earlier letters have already shipped with other products and that is where we are jumping in.


As you can see from all the features added and changes made that this is a fairly substantial update to the Payroll modules for Sage 300 ERP. Now that this is the standard Payroll module across several Sage products we should see more good progress. Certainly more than you would usually see associated with a Product Update.