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. 

Cause
Resolution

Manually edit rates

  1. Go to PR, Taxes, Activate States.
  2. Select your desired state.
  3. Click the State Tax ID # field to unlock all fields. 
  4. 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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Steps to duplicate
Related Solutions

How to correct my SUI calculations after the SUI rate is changed