Note: Support for Accounting for Nonprofits 6 ended December 31, 2007. Support for Student Billing 6 and Payroll 6 with The Financial Edge ended September 30, 2008. The Financial Edge, version 7 of our accounting software, is a benefit of your Blackbaud maintenance plan. We offer several customizable options to help you convert to The Financial Edge. Please contact your account manager.
1. In Payroll, go to Configuration, Taxes. Select State taxes in the tax type drop-down. Open the state tax.
2. In the State Tax table, select SUTA. Enter a SUTA rate of 0.00% and your state’s SUTA wage limit. Also enter liability and expense account numbers in the GL Distribution.
Note: No entry will post to these accounts since the rate is 0.00%.
3. In the employee records in Records > Employees, go to the Tax Settings tab. Select state labor tax settings, select Wages subject to SUTA from the drop-down list.
The payroll calculation tracks the taxable unemployment wages, but it does not create a tax liability. The unemployment report shows both the gross wages and the taxable wages for covered employees.
Note: This change is not retroactive; previous wages that were not subject to SUTA are not included in the taxable unemployment wages.
For Payroll 7: You can create historic entries to correct these SUTA taxable wages amounts. First, create a non-cash benefit that affects SUTA wages for use in the historic entry. Then enter the historic entries.
For Payroll 6: On the Other Pays tab in Configuration, create two other pays. Create a positive other pay, (for example, Pos SUTA Adj.), and set the SUTA tax flag to Earnings are subject to SUTA. Set all other tax flags to Do not withhold or report earnings or Earnings not subject to tax. Create a negative other pay (for example, Neg SUTA Adj.), and set all tax flags to Do not withhold or report earnings or Earnings not subject to tax.
You can use historical entries to correct the taxable unemployment wages without affecting your employees’ gross wages or your General Ledger. Open the employee record and select Employee, Add Historical Entry from the menu bar. Enter a check number, a period ending date, and a pay date for periods not included in the total taxable unemployment wages.
In the Earnings field, select the positive other pay from the drop-down list. Enter the state’s SUTA taxable amount for that quarter or month in the Rate field and 1 in the Hours/Units field. In the next row of the Earnings field, select the negative other pay from the drop-down list. Enter the same amount as a negative amount and 1 in the Hours/Units field. This amount offsets the positive other pay, thus creating a $0.00 entry on the employee’s record. The gross pay and the net pay are both $0.00. The historical entry’s Adjusted Gross tab reflects the taxable wage limit necessary for reporting purposes. Repeat this procedure for each quarter or month for each employee.
After you create these historical entries, the State Unemployment Report displays the correct taxable wages for each employee.