SUI Self-Adjust

Overview

Updated 01/26/2022

There are situations where an employee is no longer working, either through termination or the cessation of assignments. If a rate change to SUI was executed for a particular quarter that the above employees may have been in, then the deduction amount needs to be adjusted for an Employer only SUI tax. There are states like PA, NJ, and AK that have Employee paid SUI which this logic does not apply to. This only applies to employer paid SUI. 

In Avionté, SUI recalculations are self-adjusting for each quarter, once new rates are input for that quarter.

• Click here for information on the Tabs available for Suppliers
• Click here for information on adding a Supplier property

Things to keep in mind
Basic Workflow
Scenario to Recalculate Tax Amounts
Bank setup
Net $0 Checks
    Example

Things to keep in mind

• The Start Date used, must be within the current Quarter.  This feature only adjusts the current Quarter and not previous Quarters.
  • The End Date can extend past the current Quarter End Date.
    
    

  • Quarter	Quarter Start Date	Quarter End Date
    1	01/01/2021	03/31/2021
    2	04/01/2021	06/30/2021
    3	07/01/2021	09/30/2021
    4	10/01/2021	12/31/2021

• When an amendment was done in a previous quarter, prior to when this functionality was put in place (First Quarter, 2020) we handled recalculations as a one-off. The SUI Self-Adjust feature prevents users from having to do these manual recalculations, like users may have had our Technical Services department do historically.
  
  
• As long as SUI rate adjustments are done in the same quarter, the system will self-adjust.
  
  
• For employees that no longer are on assignment, dummy checks will be created with those adjustments when the recalculation is run.

• Mid-quarter, the SUI will be adjusted automatically.
  
  
• The system will auto-insert dummy checks for when the adjustments are made.
  
  
• Net $0 checks are expected.  They are to account for the difference in SUI.
  • Click here to see example

Basic Workflow

1. Employees are paid and SUI is calculated.
    
2. The rate is changed. 
   
   
3. On the last payment of the quarter, the system looks for all employees that got paid in the quarter where the SUI amount was adjusted.
    
4. This should create an employer-only statement.

Scenario to Recalculate Tax Amounts

1. Set the state SUI to a tax rate (for example, 1%) for the year date range (for example, 1/1/2020 thru 12/31/2020). Do this in Admin > Employer > Select Supplier > Tax Rate.
   

2. Pay employee in the month of concern (example January) using any payment date for the year, for the amount (example, $1000).

3. Verify that the correct amount calculated on the check (in this case, $10.00).

4. Close the payment.

5. Now set the state SUI to a new tax rate of (e.g. 2%) for the year range (e.g. 1/1/2020 thru 12/31/2020). Make sure you don’t have any open batches with employees in the state. If you do, delete them. Do this via Admin > Employer > Select Supplier > Tax Rate.

6. Pay employee in the desired month (e.g. February) using any payment date for the desired year (e.g. 2020) for the desired amount (e.g. $1000). This should now use the new rate to calculate the state SUI amount. Verify the amount of the payment.

   1. See below example:
      
      
      
      

7. Now go to back to Admin > Employer > Select Supplier > Tax Rate and select the RECALCULATE TAX AMOUNTS button. When the dialog box appears, select Yes. What this feature does is allow the second check to auto adjust the tax rate to capture the proper Quarter to Date tax amount. SUI taxes are filed quarterly and when there is a rate change in the middle of the quarter, you should be able to capture the shortfall or reduce the tax amount if the change decreased the rate. What should happen in our example is that on this second check the amount should be $30.00.
   
   

Bank setup

In order to create check records for the respective amounts that should be applied to an employee's YTD totals for SUI, the batches generated need to be associated with a bank.

To ensure that the correct bank is being used for the recalculations, please be sure to click the checkbox for "Use for Tax Recalc"

For more information please see the article: Bank Tab

 

A variable called PaymentCheckTax signifies that the record is from a recalculation.  This is in order to help with GL-related issues. It will otherwise not show in the GL due to the 0 Gross Wages on any recalculated check.

 

 

Net $0 Checks

When doing SUI recalculations, there may be checks that are created for $0 Net.  This is due to the SUI Rate being changed and, therefore, recalculating the SUI Tax Amount.  The total SUI Tax Amount is the combination of the checks.

 

Example

An employee has 1 check, issued on 2/19/2021 (Check # 4815).

 

Taxable Gross = $281.26

SUI Tax Amount = $8.69

SUI Rate = 3.09%

 

When the check was originally issued, the SUI Rate was correct but now it's not.

• If the SUI Rate is changed from 3.09% to 4.44% (and you click 'SUI Recalc')
  • New check created:

Taxable Gross = $0.00

SUI Tax Amount = $3.80

SUI Rate = N/A (since it's a recalculation)

If you combine the 2 checks:

Taxable Gross = $281.26

SUI Tax Amount = $12.49

SUI Rate = 4.44%

 

 

 

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