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Creating and updating the employer state unemployment insurance (SUI ER) formula

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Summary

How to set up and update employer state unemployment insurance (SUI) or state disability insurance (SDI).

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CAUTION: Sage Customer Support does not assist with issues related to third-party products or enhancements, hardware, report customizations, state or federal tax-related questions, or specific accounting questions. Please get in touch with your Sage business partner, network administrator, or accountant for assistance. Please refer to our Scope of Support document for details.

Note: These steps are for state unemployment insurance terminology; if configuring state disability insurance, follow the same steps, but substitute SDI for each instance of SUI.

Section 1: Update Formulas with First Payroll
  • When entering the first payroll of the year, you will be prompted to update the user-maintained formulas, including SUI, for the new year
  • This option will only appear once
  • If the process is cancelled, or otherwise not completed, the formulas will have to be manually updated
  • It is recommended to allow Sage 50 to create the new formula, even if the new tax info has not been received, as you can easily change the rate and/or limit later, using the steps in Section 3
  • To utilize this option, click Update formulas now, enter the new rate(s) and/or limit(s), and then click OK
Section 2: First Time Set Up
  1. Click Maintain, Default Information, Payroll Settings.
  2. Follow the on-screen instructions to complete the Payroll Setup Wizard.

    Note:
    The State Unemployment Rate is provided by the State Department of Labor to each company.
  3. Once the Payroll Setup Wizard has been completed, click Finish.
  4. The SUI formula for the current year will now be present in the User-Maintained Formulas table.
Section 3: Editing Existing Formula
  1. Click File, Payroll Formulas, User Maintained.
  2. From the Formula ID list, select XXSUI ER YY, where XX is the state abbreviation and YY the 2-digit current year (i.e., GASUI ER 23).
  3. Make the needed changes to the Limit or Percent in the Formula field.
  4. Click Save.
Section 4: Manually Create Formula
  • Option 1: Update from Prior Year Formula
    1. Click File, Payroll Formulas, User-Maintained.
    2. From the Formula ID list, select the prior year's XXSUI ER YY formula, with XX being the state abbreviation and YY being the 2-digit year (for example, GASUI ER 19).
    3. Change the Formula ID so it has the next number in sequence; for example, if the current ID is GASUI2 ER, change to GASUI3 ER.
    4. Change the 2-digit year in the Name field; for example, change GASUI ER 19 to GASUI ER 20.
    5. In the Formula field, edit the Limit and Percent if needed.
    6. Click Save.
    7. Close User-Maintained Formulas.
  • Option 2: Manually Create Formula
    1. Click File, Payroll Formulas, User-Maintained.
    2. In Formula ID, enter XXSUIER, with XX being the state abbreviation.
    3. In Name, enter XXSUI ER YY, with XX being the state abbreviation and YY being the 2-digit year.
    4. Set How do you classify this formula? to Tax.
    5. Set Tax agency to State.
    6. Set Select a state to XX.
    7. Leave Effect on gross pay and Filing status set to Subtracts from gross and All, respectively.
    8. Check Use this formula as a filter on the Payroll Tax report.
    9. In Formula, enter

      LIMIT = 0.00;
      PERCENT = 0.00;
      TAXABLE_GROSS = YTD_LIMIT (ADJUSTED_GROSS, LIMIT);
      ANSWER = -TAXABLE_GROSS * PERCENT%


      replacing the LIMIT and PERCENT with the correct amount and percentage.
    10. Click Save.
    11. Close User-Maintained Formulas.


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