by Jean Miller | Accounting News, Uncategorized
Be on the lookout for the SUTA rate change letters that went out in the mail last week. The premium rate schedule was changed from Schedule B to Schedule E so your rates have changed.
If you are contracted with an outside payroll provider you will need to forward this information to them so that they can properly report your SUTA (state unemployment tax) liability. If you are preparing your payroll using a software like QuickBooks or Peachtree, you need to edit your SUTA rates within the payroll item set up. QuickBooks will do “catch up” calculations to adjust for the rate reduction when you run your next payroll.
If you need any help with this, contact Cindy, Sheryl or Jean and we will be happy to help you get this change made.
by Jean Miller | Accounting News, Uncategorized
Change in the State Unemployment Tax Rates and Wage Base (Indiana Clients):
After a rather confusing first quarter 2010, the Indiana General Assembly has changed the wage base for state unemployment taxes and adjusted the rates accordingly. The wage base has been increased to $9,500 and the rates have been adjusted to range from 0.7% to 9.5%. Premium rate notices will begin arriving in your mailboxes this month. Please forward this information to your payroll service (if you have one) and to us (if we prepare your payroll tax returns). If you are using QuickBooks to prepare your payroll, on January 1st you will need to change the quarterly SUTA rates. The payroll updates will update the wage base so that the tax due will calculate correctly.Â
Note: It is very important to notify your payroll service regarding your new SUTA rates. With the change in the wage base there is the potential for a significant error in the calculation of the tax due (in most cases the incorrect rate will calculate your tax due as higher than it should be).
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