Year End Update – SUTA

by | 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. 

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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