By default, Sage BusinessWorks automatically self-adjusts percentage-based taxes (FUTA, OASDI, Medicare, SDI, and SUI) based on the year-to-date taxable pay. This means that Sage BusinessWorks calculates the current pay period's tax as follows:

• [(YTD taxable pay + Current period's taxable pay) * Percentage rate] - YTD tax withheld or accrued = tax to withhold or accrue for this payroll

Occasionally however, a state issues a change to the SUI or SDI rate that becomes effective at some point after the beginning of the year. If Sage BusinessWorks were to self-adjust the tax based on the new rate, the new tax rate would be applied to the entire year's earnings. A special start-up parameter allows you to override this default so that Sage BusinessWorks does not apply the new tax rate to the entire year's earnings.

To activate or deactivate the self-adjusting feature for SDI or SUI, see Overriding SUI or SDI adjustment.pdf.