Before you begin

• It's important to first reconcile employee and company totals
• The SUI Pay column shows the SUI taxable pay without regard to any limits. To review the SUI taxable pay that factors in the limits, select PR, Taxes, Current State Tax Information, Current State Tax Information report. The first section uses the SUI Pay and SUI Taxes from the PR, Utilities, Maintain Company Totals screen. The SUI Rate is from PR, Taxes, Activate States

Total payments (Line 3)

Total Salaries, wages, commissions, fees, bonuses and vacation allowance, miscellaneous payments, etc.

Exempt Payments (Line 4)

• All portions of a payment that aren’t subject to FUTA tax
• Payments are based on deductions, other pays, bonus payments, manual and handchecks marked as not subject to FUTA tax
• The FUTA Filing status selected in P/R, Employees, Maintain Employee, Status, window will also affect the amount that appears on line 4
  • Employees selected as FUTA tax exempt, the total amount is on line 3 and Line 4 includes the exempt amount. This Exempt Payment Line increases each pay period for all payments marked as FUTA exempt, regardless of the $7,000 FUTA taxable limit

Payment in excess of $7,000 (Line 5)

Total payments less exempt payments minus $7,000 per employee. This amount continues to increase for all payments that are subject to FUTA tax but exceed the $7,000 limit.

Total Exempt Payment (Line 6)

Combined total of line 4 and 5.

Total Taxable Wages (Line 7)

Total of all wages subject to FUTA tax up to the $7,000 per employee. Lines 3 minus Line 6 = the amount shown on line 7. For example,

• Line 3 Total payments: $8,800.00 Total wages for all employees
• Line 4 Exempt payments: $750.00 Equals FUTA non-taxable wages (FUTA taxable deductions).
• Line 5 Payments in excess of 7,000.00: $1,050.00 Excess portion of the total wages (less exempt payments)
• Line 6 Total exempt payments: $1,800.00 equals the total of lines 4 and 5
• Line 7 Total taxable wages: $7,000.00 equals total FUTA taxable wages (line 3 minus line 6)