The SUI_E tax limit for the current work state may have already been met if SUI_E has been paid for another work state

NOTE: Louisiana, Minnesota, and Montana SUI does not calculate this way.

When you process Payroll checks, all employer state unemployment insurance (SUI_E) subject-to amounts for any state where the employee has worked in the current year are added together to determine the total year-to-date (YTD) SUI_E amount for that employee. The total for that employee is then compared to the current work state SUI_E limit (Setup Taxes Tax Rates).
Note: If there is no limit on the tax rate setup, SUI_E may not calculate correctly.

If the current state SUI_E limit is less than or equal to the employee s total YTD SUI_E subject-to, then no subject-to or tax amounts calculate on the check. If the current state limit is greater than the employee s total YTD SUI_E subject-to, then subject-to and tax amounts do calculate until the current SUI_E limit is met. The total YTD Subject-to never exceeds the highest limit of any state the employee has worked in.

The employee work location from the beginning of the year until the limit is met determines how much subject-to calculates for each state. For example, an employee works in the same state all year and has met the SUI_E limit for that state. When they start working in a new state, no SUI_E subject-to or tax calculates unless the new state SUI_E limit exceeds the initial state's SUI_E limit. The employer is responsible for paying taxes on all subject-to dollars for each employee up to the limit for the state with the highest limit in which the employee worked. Timberline s calculation guarantees that if the limits and tax rates are set up properly from the beginning of the year for all states, the time worked is entered to the correct state, pretax deductions and exempt pays are marked properly, and no manual changes are made to the employee s tax adjustments or tax on the check, that this will be an automated process.

Example:

In this example, the employee who has earnings in both New York and New Jersey currently works in New Jersey. Since the Total YTD Subject-to equals $5526.00 (which is less than limit in the current state), Subject-to calculates until the total YTD Subject-to amount meets the limit for that state. The tax calculates based on the NJSUI_E percent.