Solution Properties
Solution ID:
224924950076497
Last Modified Date:
Thu Oct 15 17:16:33 UTC 2026
Taxonomy Path:
Category//Transactions//Calculations
Author:
[email protected]
Correct SUI calculations after the SUI rate is changed
Description
Cause

You’ll need to correct SUI calculations if:

  • You entered an incorrect SUI rate in PR, Taxes, Activate States.
  • You received your updated SUI rate from the government after you had already processed your payroll.
Resolution

Change and verify the SUI rate

Understand the SUI self-adjustment

After you change the rate, Sage BusinessWorks attempts to self-adjust SUI during future payroll calculations.
The employee must meet the applicable requirements for self-adjustment:
  • The employee is active.
  • The employee has additional payroll checks to process.
  • The employee's Company SUI YTD remains below the maximum SUI amount.
  • If Company SUI YTD is below the maximum, the system calculates additional SUI on future checks.
  • If the Company SUI YTD exceeds the maximum, the system calculates $0.00 until the amounts match.

Change the SUI rate

If you need to change the SUI rate after the beginning of the year:
  1. Enter the correct rate in PR, Taxes, Activate States.
  2. Run the Payroll Verification Report from PR, Utilities, Print Payroll Verification Report.
  3. Review the report for inconsistencies in previously calculated SUI amounts.
  4. Find the SUI limit in PR, Taxes, Maintain Tax Tables, Allowances, Limits and Rates.
  5. Multiply the SUI limit by the new SUI rate. This will become the Maximum SUI amount.
  6. Compare the result with each employee's Company SUI YTD amount.
  7. Select the appropriate scenario below.

Determine the scenario to use

Employees who haven't reached the maximum SUI amount

In this case, use Scenario 1 or Scenario 2.

Employees who have exceeded the maximum SUI amount

In this case, use Scenario 3.

▼ Scenario 1: First quarter with future checks to process and limit not reached
Use this scenario when both conditions apply:
  • You're still processing first-quarter payroll checks.
  • The employee hasn't reached the maximum SUI amount.

Option 1: Void and reissue payroll checks

Reissuing the checks corrects both employee and company totals.

  1. Correct the rate in PR, Taxes, Activate States.
  2. Open PR, Processing, Void Payroll Checks, by Check or by Employee.
  3. Void the employee's most recent payroll check or checks. Select restore timecard and use the same void date as the original check.
  4. Reissue the payroll checks to plain paper using the correct amounts. Use the same date/check number as the original check.
  5. Pay tax deposits using the new payroll calculation. Pay the deposit under PR, Taxes, SUI Deposits.
  6. Run the Payroll Verification Report from PR, Utilities, Print Payroll Verification Report.
  7. Confirm that the SUI self-adjustments are complete.

Option 2: Let payroll self-adjust

  1. Correct the rate in PR, Taxes, Activate States.
  2. Continue processing the employee's remaining first-quarter checks.
  3. Let the system self-adjust SUI during those calculations.
  4. Pay tax deposits after completing the quarter's final payroll calculation.
  5. Run the Payroll Verification Report from PR, Utilities, Print Payroll Verification Report.
  6. Confirm that the SUI self-adjustments are complete.
▼ Scenario 2: After the first quarter and limit isn't reached
Use this scenario when both conditions apply:
  • You're past the first quarter or can't complete the self-adjustment in the first quarter.
  • The employee hasn't reached the maximum SUI amount.
  1. Correct the rate in PR, Taxes, Activate States.
  2. Let the system self-adjust SUI through future payroll checks.
  3. Manually calculate the tax deposit the government expects.
  4. Pay the correct tax deposit amount under PR, Taxes, SUI Deposits.
  5. Offset the difference to penalty or overpayment.
  6. Continue adjusting deposits until the SUI rate fully self-adjusts.
  7. Run the Payroll Verification Report from PR, Utilities, Print Payroll Verification Report.
  8. Confirm that the SUI self-adjustments are complete.

NOTE:

Self-adjusting transactions post in a different quarter from the original transactions. You can use a journal entry to redistribute financial-report postings to the prior quarter when necessary. Consult your accountant for assistance with journal entries.

Pay a tax deposit with a penalty or overpayment

  1. Select Payroll, Taxes, SUI Deposits, Current Year.
  2. Select the appropriate liability period.
  3. Enter the correct payment in the Total deposit amount.
  4. Calculate the difference between the original Amount and the new payment.
  5. Enter that difference in Penalty/overpayment amount.
    • Enter a positive Penalty/overpayment amount when paying more than the original amount.
    • Enter a negative Penalty/overpayment amount when paying less than the original amount.
  6. Click Post.
  7. Click Yes when the deposit confirmation message appears.
The system posts this difference to the Tax penalties/overpayment account.
That account comes from Maintain Payroll Parameters, Posting Accounts.
▼ Scenario 3: Limit reached or self-adjustment isn't available
Use this scenario when both conditions apply:
  • You're past the first quarter or can't self-adjust during the first quarter.
  • The employee has reached the maximum SUI amount.
  1. Correct the rate in PR, Taxes, Activate States.
  2. Determine whether you'll process future payroll checks for the affected employees.
  3. Follow the applicable steps below.

If employees have future payroll checks

  1. Manually calculate the correct SUI amounts.
  2. After entering the timecard and performing the automatic payroll calculation.  Perform a Manual Payroll Calculation under PR, Processing, Manual Payroll Calculation.
  3. Enter your calculated SUI company amount in the Fed/State Taxes section.

If employees don't have future payroll checks

You can't correct the employee amounts through future payroll checks.
  1. Document that the employee SUI amounts are incorrect.
  2. Manually calculate the correct employee SUI amounts.
  3. Correct the SUI figures when preparing affected reports.

Pay a tax deposit with a penalty or overpayment

Manually calculate and pay the SUI amount the government expects.
Offset differences to Penalty/overpayment until you've fully accounted for the rate correction.

Enter the tax deposit

  1. Select Payroll, Taxes, SUI Deposits, Current Year.
  2. Enter the correct payment in the Total deposit amount.
  3. Calculate the difference between the original Amount and the new payment.
  4. Enter the difference in Penalty/overpayment amount.
    • Enter a positive Penalty/overpayment amount when paying more than the original amount.
    • Enter a negative Penalty/overpayment amount when paying less than the original amount.
  5. Click Post.
  6. Click Yes when the deposit confirmation message appears.
The system posts this difference to the Tax penalties/overpayment account.

Correct tax reports

  • When you can't correct employee checks, manually calculate the correct SUI amounts for Enhanced Tax Reporting.
  • Run the Payroll Verification Report from PR, Utilities, Print Payroll Verification Report.
    • Employees who haven't fully self-adjusted continue to appear on this report.
    • Employees who can't self-adjust also appear on the report, including employees who reached the limit or terminated.

Correct the General Ledger, if necessary

  1. Manually calculate the correct General Ledger amounts.
  2. Open GL, Entries, Post to Journals.
  3. Enter the required journal entry.
    • Work with your accountant if you're unsure about the journal entry amounts or accounts.
    • Find the applicable posting accounts here:
      • Payroll and tax expense: PR, Utilities, Maintain Payroll Parameters, Posting Accounts
      • Task Codes: PR, Utilities, Maintain Task Codes
      • SUI accounts: PR, Taxes, Activate States
[BCB:163:Chat BusinessWorks US:ECB]

 

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