Understand what service packs update

• Service packs update state payroll tax rates and default wage base limits.
• Service packs don’t update company-specific unemployment or disability rates.

Register for tax update notifications

1. Register for Community Hub notifications to receive alerts about tax table updates.
2. Monitor these notifications throughout the year.

Check your rates before the first payroll of the year

Review SUI settings

• Sage BusinessWorks updates don't update your personal SUI rate. Update the rate before your first payroll of the year.
• If your state publishes updates before a Sage BusinessWorks service pack release, review those changes before processing payroll.

Review SUI wage limits

1. Select PR, Taxes, Maintain tax tables.
2. Verify the SUI wage limit before processing payroll for the new year.
3. Adjust the wage limit if your company uses a non-default value.

Review SUI rates

1. Select PR, Taxes, Activate states.
2. Verify the SUI rate assigned to your company.
3. Update the rate when your state issues a change notice.

Change your limits and rates

Instructions for changing your limits and rates.

Update SUI or SDI limits

1. PR, Taxes, Maintain Tax Tables.
2. Select your State. The State will display the SUI or SDI limits.
3. Click Allowances, Limits, and Rates....
4. Enter the limit.
5. Click OK.
6. Select Save.

Update SUI or SDI rates

1. Go to PR, Taxes, Activate States.
2. Select your State. The State will display the SUI or SDI limits.
3. Enter the rates as percentages. For example, enter 1.9% as "1.9" (without the quotes).
   
   TIP:

   Before starting your new year, see preparing your payroll for the new year.

4. Review your General Ledger posting accounts.
5. Click Save.
   

Update Federal limits (OASDI, FICA, FUTA)

1. PR, Taxes, Maintain Tax Tables.
2. Select US Federal.
3. Select Allowances, Limits, and Rates....
4. Enter the limit.
5. Click OK.
6. Select Save.

Additional Information

• Sage BusinessWorks calculates percentage-based taxes (OASDI, Medicare, SDI, SUI, and FUTA) on year-to-date taxable pays.
• Changing the rate will trigger a larger or smaller calculation of percentage-based taxes, and the system will self-adjust.
  • The system won't self-adjust on any employee who has already reached the SUI limit. You'll need to correct checks with incorrect SUI calculation manually.
• If you change the rate mid-year, the system will adjust based on year-to-date totals. To prevent this, you’ll need to disable self-adjusting.