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FUTA & SUI Rates

Table of Contents

Background How to Update FUTA & SUI Rates Credit Reduction Information

This article contains information on AccountEdge's FUTA and SUI rate settings as well as information on employer's who fall under Credit Reduction rules.

Background

With AccountEdge, FUTA (Federal Unemployment Tax) and SUI (State Unemployment Insurance) are not included in the hard-coded Tax Tables that we receive from a Clearing House. They're not included in our program updates. Unfortunately we do not receive this information about Credit Reduction States from the IRS nor does the Clearing House.

FUTA and SUI can actually vary from employer to employer. Not every employer has the same rates. There are certain scenarios and cases with the government where you may have a special rate for both of these.

Due to the varying rates and no way to know if a specific employer gets a special rate because of certain circumstances these rates are not included in the Tax Tables updates released for AccountEdge.

FUTA and SUI have always been a user-entered field with AccountEdge for this reason. This way they can be properly updated by the employer for specific employer cases/circumstances.

How to Update FUTA & SUI Rates

The quick way to edit the FUTA & SUI rate is:

  1. Go to the top menu bar and select Setup.
  2. Then down at the bottom choose "Payroll & 1099 Information".
  3. Modify the FUTA and SUI rates here. They are entered as a percentage.

Alternatively you can also manage your FUTA and SUI rates from the payroll categories window. This method allows you to edit more detail.

  1. Click into the Payroll module.
  2. Click on the blue button for Payroll Categories
  3. Select the Expenses tab at the top.
  4. Double click on the FUTA/SUI category you wish to edit.

Credit Reduction Information

The IRS does suggest that employers plan accordingly due to the fact that the Credit Reduction is dependent on how many years the loan is overdue.

More information on FUTA Credit Reduction and how it applies can be found using the link directly from the IRS down below:
https://www.irs.gov/businesses/small-businesses-self-employed/futa-credit-reduction

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