CALCULATING FUTA & SUTA AFTER CHANGING EMPLOYEE PAY FROM HOURLY TO SALARY

I changed an employee's pay method from hourly to salary in November 2024 (4th quarter).  I sat up a new employee with same information with 2 behind name.  By doing this, my FUTA & SUTA reports were incorrect as it did not accumulate the totals, treating them as 2 different employees.  I've read to uncheck "USE DEFAULTS" box for FUTA, but I have not found anything on SUTA.  Has anyone else experienced this?  If so, how did you correct? 

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    I have two employees that have moved to salary and I had to make new employee accounts. I couldn't figure out how to stop suta and futa from calculating taxes.  Now that I have read this response it have it fixed but how do I fix payroll that has already been processed and calculated incorrectly???

  • +1 in reply to Casey Harvey
    Verified Answer

    Since it's an Employer Liability that was calculated and shouldn't have, if you have already filed that quarter's Reports/Payments, you can adjust future Quarterly Returns & Payments, and if overpaid, request a refund. You can edit the previous checks in your system and remove calculations for FUTA and/or SUTA as needed, which will update your Financials and Reports, or you can enter negative values on future checks in those areas to back out what was previously calculated.

    Tammi M. Ermerins ([email protected])

    Certified Sage 50/Peachtree Accounting & Crystal Reports Consultant & Trainer

    800-780-0700 / 954-961-0600, Visit Us on the Web at https://pcosupport.com

Reply
  • +1 in reply to Casey Harvey
    Verified Answer

    Since it's an Employer Liability that was calculated and shouldn't have, if you have already filed that quarter's Reports/Payments, you can adjust future Quarterly Returns & Payments, and if overpaid, request a refund. You can edit the previous checks in your system and remove calculations for FUTA and/or SUTA as needed, which will update your Financials and Reports, or you can enter negative values on future checks in those areas to back out what was previously calculated.

    Tammi M. Ermerins ([email protected])

    Certified Sage 50/Peachtree Accounting & Crystal Reports Consultant & Trainer

    800-780-0700 / 954-961-0600, Visit Us on the Web at https://pcosupport.com

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