The following is a summary of items to consider before you use recalculate subject-to

• Only taxable and subject-to amounts are affected. Tax amounts are not changed.
• SUI Hours will be recalculated on the Check Tax and Employee Tax record.
• All checks for the year are recalculated using your current tax setup. Contact Sage Support or your certified Sage consultant if any of the following apply to you:
  • Employees' residence state changed mid-year
  • Employees' residence local changed mid year
  • New taxes were added with some having different effective dates
• You can use ranges to select individuals or recalculate all your employees.
• You can recalculate current or history transaction files.
• If the tax setup changed during the year, recalculating could have adverse results. Special workarounds may be required.
• If you have employees who live or work in Pennsylvania Recalculate Subject-to functionality remains the same except in the case where a comparison tax rate is changed. If no local tax rates have changed, and if no employee resident locals have changed, recalculate subject to will run normally. If a rate or employee resident local was changed during the year, please contact support, or your consultant.
• Important: If the Resident Local changes for an employee mid-year, recalculating subject-to will use the new Resident Local Tax Group in the comparison tax calculation to determine the rate on all the checks for the year. If an employees Residence Local changes mid-year do not use recalculate subject-to for that employee.

Ask the following questions to determine whether you should use recalculate subject-to:

1. Are all employees affected?
2. Have any pay, deduct, tax or reciprocity records been added, changed or deleted during the year? For example, if a deduction changed to pre-tax during the year.
3. Has any employee changed the adjustment method to or from exempt on their employee tax record during the year?
4. If you use reciprocity, has any employee changed their resident state during the year?

Note:

• Before you use Recalculate Subject-to, back up all Payroll files from the beginning of the year to the current period. Refer to How do I use File Tools to back up data files? for steps.
• Refer to Payroll Help topic for an example of recalculating subject-to amounts for multiple files.