TAX TABLE ISSUE
Posted: Sun May 03, 2009 8:02 pm
Our non-profit organization elected to pay both FUTA AND SUTA taxes. Therefore, I added these item to the Payroll tax tables. Both have cap requirements. My issue is that although each tax has a cap: ( Federal = $7,000 annually and State = $19,300 ), when that cap is reached through the payroll process the software still continues to deduct the tax after the cap amount is reached. Does setting the cap amount instruct the software to stop calculating the tax above the cap amount or must it be stopped manually by deleting these items? Thank you for your assistance.