TRAIN LAW UPDATE: 2023 Tax Table

Last December 6, Sprout Payroll introduced the 2023 tax table to the payroll system. The 2023 tax table was added on top of the 2018-2022 tax table. There might be concerns as to which tax table Sprout will use if you process a payroll run from 2022 on the year 2023.

To answer, the Payroll system will base which tax table to use on your Payroll Run’s YEAR and MONTH. This means that the system will not base it on the time you processed your payroll run, but on the YEAR and MONTH inputted on the payroll run (refer to screenshot below).

Once the system reads the payroll run’s YEAR and MONTH, the system will now automatically choose which tax table to use.

*Transaction Date, From, and To do not affect the system’s logic. You may disregard these components.

SCENARIO 1:

You have a pending payroll run for December 2022 and will be processing the payroll run in 2023.

Tax Table that will be used: 2018-2022 Tax Table

• In this payroll run, you have used the Year: 2022 and the Month: December.
• Given that the year used is 2022, the tax table will be the 2018-2022 tax table.

SCENARIO 2:

You will process a payroll run for Jan 2023.

Tax Table that will be used: 2023 Tax Table

• In this payroll run, you used the Year: 2023 and the Month: January
• Given that the year used is 2023, the tax table will be the 2023 tax table.