| | How percentage-based taxes are calculated |
| Description | Percentage-based taxes are OASDI, Medicare, FUTA, SUI, and SDI. |
| Resolution | Percentage-based tax calculation formula - YTD taxable pay + Current period taxable pay = Calculated YTD taxable pay
- Calculated YTD taxable pay * Percentage rate = Calculated tax for YTD taxable pay
- Calculated tax for YTD taxable pay - YTD tax withheld or accrued = Tax to withhold for this payroll
 EXAMPLE:
- YTD taxable pay = $5,000.00
- Current period taxable pay = $500.00
- Calculated YTD taxable pay = $5,500.00
- $5,500.00 * Percentage rate (such as 6.2%) = $341.00
- $341.00 - YTD tax withheld of $300.00 = $41.00 tax to withhold this payroll
| FIGURE | SOURCE | | YTD taxable pay | Employees, Maintain Employees, Totals | | Current period's taxable pay | Calculated from time card entries | | Percentage rate | Taxes, Maintain Tax Tables (OASDI, Medicare, FUTA)
Taxes, Activate States (SDI, SUI) | | YTD tax withheld or accrued | Employees, Maintain Employees, Totals | System limitations on self-adjusting - Sage BusinessWorks makes no adjustments for a terminated employee
- The system won't reduce the tax already withheld on an over-withheld tax. The program calculates $0.00 or a lower amount until it makes up the difference
[BCB:163:Chat BusinessWorks US:ECB]
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