Update Unemployment Insurance Tax Amounts per Employee via Premier Payroll Automated Adjustments

In the event that Premier Payroll user receives the Unemployment Rate Notification from the Tax Agency which is effective in the past, the user can request to run automated payroll adjustments from the Premier Payroll Service.

 

This is applicable to Unemployment rate changes that are effective within the same taxable quarter.  The request is processed for open taxable quarters only. Example is Unemployment rate is increased from 2% to 3% effective January 1, 2013 and tax notice is received on March 1, 2013.

 

For closed quarters, kindly review the tax rate on the Tax Reconciliation package for possible journal entries.

 

To request for system generated payroll adjustments, please contact Premier Payroll Service through NetSuite Customer Support.

 

To view the list of the Automated Payroll Adjustments:

1. Navigate to Reports > New Search

2. Click Transaction hyperlink

3. Mark Use Advanced Search checkbox if unticked

4. On the Criteria Tab > Standard Subtab > Filter Subtab > select

Main Line = Yes

Type = Payroll Adjustments

System Notes Fields = Set by is any of -System-

Date Created (Note: only if known; this is the date transaction is run by the Premier Payroll Service)

Date (Note: this is the open taxable quarter that is adjusted)

 

5. Click Preview or Save

 

 

To view the system generated transactions with the adjusted total Taxed Wage Base and Tax Amounts, user can customize a payroll report. 

1. To customize State Withholding Report,

• Navigate to Reports > Payroll > State Withholding
• At the bottom part of the screen, select the Date range
• Click the Amount Withheld hyperlink next to the State Unemployment (Note: User can review the total Wage Base with corresponding Tax Amount per employee at this stage of the customization)
• Click Customize
• Click Edit Columns
• Click Payroll Liab Tx folder
• Click Source
• Click Preview or Save

Note: The system generated payroll adjustments show Perquest as Source

 

2. To customize Payroll Summary Report

• Navigate to Reports > Payroll > Payroll Summary
• At the bottom part of the screen, select the Date range
• Click the amount next to the State Unemployment
• Click Customize
• Click Edit Columns
• Click Payroll Transactions folder
• Click Source
• Click Taxed Wage Base
• On the Report Preview pane, mark the Add Grand Total checkbox
• Click the pencil icon on top of Employee and drag it to the extreme left portion of the screen above Payroll Item
• Click Preview or Save
  

 

Funding of Automated Adjustments

 

There are two factors that can affect how the funding of automated adjustments is applied by Ceridian:

1. Timing of the adjustment
-- within the taxable quarter
-- after the close of the quarter

2. Net Result of the adjustments
-- debit (additional tax due)
-- credit (tax refund)

Payroll Service performs automated adjustments only for the current taxable quarter.

- If the net result is a Debit (additional tax due), Ceridian pulls the funds right away as long as the adjustment is made before the quarter cut-off.

- If the net result is a Credit (refund), Ceridian reduces the funding of the next payroll as long as the adjustment is made before the last payroll run of the quarter. If after the last payroll run, but before the quarter close, the credit will form part of the closing balances from the Tax Reconciliation Statement of the Client Statement Package and user will need to request a refund by submitting a Refund Request Form.

Notes:
1. Payroll Service is currently not charging for requests to perform automated adjustments so this is free of charge and they do this per request only.
2. Funding of automated adjustments are listed on the transactions from View Payroll Status with type = Funding - ACH. The settlement date is based on the Deposit Schedule on the payroll set-up but the Funding Journal is dated using the same date when the transaction is created. See Issue 131917 for reference.
3. To better understand how funding of automated adjustments can be reconciled on the bank statement, see Reconcile Payroll Transactions Funding Account against Actual Funding per Bank Statement.

 

Kindly See SuiteAnswers ID 14764 for steps to update state unemployment rates.