Sage recently announced a major change to pricing and annual renewals for the Sage 100 Payroll module, which will go into effect with the Sage Business Care plans that expire on or after May 1st of this year. As of May 1st, the next time your annual Business Care plan renews, the Payroll module will not be included as part of that plan. Instead, it will be broken out into a separate subscription plan. The cost of your subscription will be based on the number of employees you have across all companies.
The good news is that Sage will “grandfather” anyone currently using the Sage 100 Payroll module, and, regardless of the number of employees, the maximum amount you’ll pay annually for your Sage Payroll maintenance is $1,200 (if you have less than 150 employees, your annual renewal will be less than $1,200). Sage will also include their Direct Deposit software as part of the renewal and will use their processor, which will result in savings for some clients since there will be no fees charged for Direct Deposit transactions. Sage's Gold Support Plan is also included with the renewal, which means they’ll provide support for the Payroll module at no charge.
As of April 18th of this year, Sage will no longer sell the Payroll module as it is sold today, and the subscription plan (essentially, an annual rental plan) will be the only option available. The software will still be installed on the same server as the rest of your Sage 100 software – only the method of paying for it will be different. Regardless of the new Sage policy, Bennett/Porter will still continue to support the Payroll module as we always have.
We know our clients will have questions about the new Payroll subscription plan and how they will be impacted by it. At our Connections 2016 conference on May 11th, the Sage 100 Road Ahead session will address this new Sage policy as well as demonstrate the new Direct Deposit services.