| How to change the State Disability (SDI) or State Unemployment (SUI) rate |
Description | Tax table updates don’t update the SDI or SUI rates for existing companies. NOTE: Some states refer to the SUI tax as the Reemployment tax. |
Resolution | Manually edit rates - Go to PR, Taxes, Activate States.
- Select your desired state.
- Click the State Tax ID # field to unlock all fields.
- Enter the rates as percentages. For example, enter 1.9% as "1.9" (without the quotes).
TIP: Before starting your new year, see Prepare your payroll for the new year. How to use the Limits and Rates in Maintain Tax Tables - You maintain the limits for SDI, SUI, and Reemployment tax in PR, Taxes, Maintain Tax Tables
- Installing tax updates will update the limits in the program
NOTE: To change the wage base limit before the tax table release, go to PR, Taxes, Maintain Tax Tables - The rates in Maintain Tax Tables are default values for new companies, not used for existing ones
- The system calculates taxes based on the rates in PR, Taxes, Activate States
Additional information - Sage BusinessWorks calculates percentage-based taxes (OASDI, Medicare, SDI, SUI, and FUTA) on year-to-date taxable pays. See How percentage-based taxes are calculated
- Changing the rate will trigger a larger or smaller calculation of percentage-based taxes, and the system will self-adjust
- If you change the rate mid-year and want to prevent the system from adjusting based on the year-to-date totals, see how to disable self-adjusting
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