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Taxable Wage Limit Calculations

  • 3 February 2023
  • 4 replies
  • 102 views

Hello Everyone,

I was wondering how the payroll module pulls taxable wage amounts. Let’s talk about the California SUTA wage base amount. Say an employee has gross wages of $10,000. The taxable wages for the California SUTA will stop at $7,000 (unless overriden of course). Does it stop at $7,000 because Acumatica is pulling this limit from the tax symmetry engine?

I am just trying to get confirmation on how this works.

Thanks

4 replies

M
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I think the Tax Symmetry engine will stop it accordingly, but I always put the wage limit into the “Override Wage Base” column of the Tax Settings anyway. We’ve run into issues with the Tax Symmetry engine not calculating properly and would rather be safe than sorry ;) 

Hope that helps!

P
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I think the Tax Symmetry engine will stop it accordingly, but I always put the wage limit into the “Override Wage Base” column of the Tax Settings anyway. We’ve run into issues with the Tax Symmetry engine not calculating properly and would rather be safe than sorry ;) 

Hope that helps!

That is good to know. I have never had any issues on the wage base so far. I wonder if anyone from Acumatica can confirm what we both think about the Tax Symmetry Engine.

pbennett
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Userlevel 5
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So Symetry should handle all of teh information that applies to all companies, therefore it should stop the calculation of that tax when you reach the limit. please let us know if that is not the case because that needs to b4e reported.

 

thanks

Patricia Bennett
K
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The system will stop at the Tax Amount Limit.  Refer to the Employee Taxes Inquiry, and the YTD Tax Amt column (PR4030P3).

To have the system recognize the wage limit as well, it is recommended to setup the tax in Tax Maintenance to select Check the year-to-date tax amounts paid, Value = True, and not allow Employee Override, unless there is a business need.  You can change this anytime and then Assign Taxes to Employees.  This will be effective going forward, but won't affect any checks already processed.  This can be done for FUTA, SUTA, FICA, and Medicare.

 

 

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