Set
Up Multiple State Withholdings (Example)
How Do I...
The following example demonstrates how a Chicago-based company would
modify its payroll setup to accommodate employees who live in Illinois,
Indiana, and Wisconsin. It assumes that the Payroll Setup Wizard has already
created an ILSUI ER calculation for unemployment.
Use this procedure to set up multiple state withholdings for your company,
adapting the setup to match your
company's location.
Note: You only need to do this if you have subscribed to a Sage Business Care planor a monthly subscription. If you have not subscribed, you will have to manually calculate and enter the state withholdings.
- From the File
menu, select Payroll Formulas,
then choose User-Maintained. Sage 50
displays the User-Maintained
Payroll Formulas window.
-
Select your state's SUI ER formula from the list.
For our example, we would select the ILSUI
ER 11 formula (where 11 is the current payroll year--2011).
-
Click the arrow beside the Select a state
field. Instead of the field having a specific state (IL) we want to select "All States".
When this SUI formula is used, whatever is in this State
requirement field must match what is in the State
field of the Withholding Information
table in the Maintain Employees/Sales Reps window. When you select All States, Sage 50 will look for all states, ignoring the
employee's state withholding setup. This will become clear in a moment.
- Save the formula. Click the link in the bottom right of the window: Next Step: Add this formula to Employee Defaults.
- The Employee Defaults
window should be displayed.
-
Select the Company Fields
tab and locate your SUI_ER payroll
field.
If you used the Payroll Setup wizard, it will be the fourth field.
The calculation check box is probably selected and possibly using **SUI ER as the formula.
-
Delete the **SUI ER formula listed and enter or select your state's specific SUI formula.
To look it up, right-click in the field and select the formula from
the list.
In our example we would delete **SUI
ER and enter ILSUI ER as
the new tax name.
Because we removed the state requirement from the state SUI ER formula in the previous step, the SUI ER tax will now ignore the employee's
state withholding setup and always calculate.
Note: The Payroll
Setup wizard sets up **SUI ER so as to mask whatever value that is entered
in the State field of the employee's Withholding
Information table in the Maintain Employees/Sales Reps window and
look for that corresponding state SUI ER formula. For example, if you
entered GA in the employee's State field, then the **SUI ER formula mask would look for and only use the GASUI ER calculation. The same is
true for the State Employee field. The formula mask of **SIT would only
look for and use the GASIT calculation for state withholding.
- Click OK.
to save the payroll field.
- From the Maintain
menu, select Employees/Sales Reps.
Sage 50 displays the Maintain Employees/Sales Reps window.
-
Enter or select each employee who lives in the same state in which
your company resides. To display a list of existing employees, type ? in the Employee
ID field, or select the Lookup button.
For our example, we would select those employees who live in Illinois.
- Select the Withholding Info
tab and locate the State field
in the Withholding Information
table. The state code should match your company's state. In our example,
it should be IL.
- Select the Employer
Fields tab and locate the SUI_ER payroll field. Make sure the Use Defaults check box is selected and
the correct SUI ER tax name is listed. In our example, the Use Defaults check
box is selected and ILSUI ER is listed.
-
Now select the employees who live in states different from the company's
state.
For our example, we would select those employees who live in Indiana
or Wisconsin.
- Select the General
tab and locate the State field
in the Withholding Information
table. The state code should match your employee's respective state. In
our example, it could be IN or WI.
- Select the Company
Fields tab and locate the SUI_ER
payroll field. Make sure the Use Defaults check box is selected and the correct SUI ER tax name is listed. In our
example, the Use Defaults check box is selected and ILSUI ER is listed.
- Save each employee, if changes were made.
How it works
During payroll entry (based on our example), the Illinois employee uses
the ILSIT (state withholding) formula and the ILSUI ER (employer state
unemployment) formula. The Indiana employee uses the INSIT and ILSUI
ER formulas.
What do you want to do next?
Step 1: Modify the SUI formula to accept all states