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, 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 the following not subject to FUTA tax
  • deductions
  • other pays
  • bonus payments
  • manual or Handchecks 
• The FUTA Filing status in the P/R, Employees, Maintain Employee, Status window also affects the Line 4 amount
  • FUTA tax exempt employees - Line three (3) and Line four (4) includes the exempt amount
  • Exempt Payments will increase for FUTA exempt payments with each pay period.  The total continues regardless of the $7,000 FUTA taxable limit

Payments exceeding $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)