If you have employees who had tax withheld at the .008 rate but had not reached the $7000 limit before the rate dropped to .006 the software will withhold incorrectly. It appears to key on a $42 total tax rather than a $7000 limit. I have two employees in this category. One reached $7000 in the last pay with $1210 in FUTA taxable income but since he had more than $42 in FUTA tax already no tax was calculated. The other has yet to reach the $7000 threshold but the program calculated only enough FUTA to reach $42.
July 21, 2011 - 8:52AM#1
Federal Unemployment Tax problem in 10.2.11.0