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

Question

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?

termerins · Accepted 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 ( tammi@pcosupport.com ) 
 Certified Sage 50/Peachtree Accounting & Crystal Reports Consultant & Trainer 
 800-780-0700 / 954-961-0600, Visit Us on the Web at https://pcosupport.com

termerins · Answer

You can uncheck both the Use Defaults and Calc boxes on FUTA and SUTA for that Employee. Just remember that before you process a Payroll for the next calendar year, you will need to recheck the Use Defaults on both of these fields so that for the two Payroll Fields will again calculate for that Employee. 
 
 Tammi M. Ermerins ( tammi@pcosupport.com ) 
 Certified Sage 50/Peachtree Accounting & Crystal Reports Consultant & Trainer 
 800-780-0700 / 954-961-0600, Visit Us on the Web at https://pcosupport.com

Sage 50 US

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

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