Accruing unemployment taxes in payroll

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PennyR
Posts: 5
Joined: Wed Sep 12, 2018 2:33 pm

Accruing unemployment taxes in payroll

Post by PennyR »

I'm wondering how to set up the employer portion of unemployment to accrue automatically when payroll is calculated. The calculation for us is .013% on the first $47,300 in annual wages. Right now I have the pay items set up as an employer liability but not as a tax. I have entered the percent on each employee. However, the calculation will not automatically stop when the employee reaches $47,300 in wages. We currently need to monitor YTD wages and change the rate to 0 when an employee exceeds the wage limit. And next year when the rate changes we will have to modify the rate on every employee. Surely there must be a better way.

We are on PowerChurch v 11.5 but will be upgrading to v 12 soon.

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: Accruing unemployment taxes in payroll

Post by NeilZ »

PennyR wrote:I'm wondering how to set up the employer portion of unemployment to accrue automatically when payroll is calculated. The calculation for us is .013% on the first $47,300 in annual wages. Right now I have the pay items set up as an employer liability but not as a tax. I have entered the percent on each employee. However, the calculation will not automatically stop when the employee reaches $47,300 in wages. We currently need to monitor YTD wages and change the rate to 0 when an employee exceeds the wage limit. And next year when the rate changes we will have to modify the rate on every employee. Surely there must be a better way.

We are on PowerChurch v 11.5 but will be upgrading to v 12 soon.
Its actually very easy to do, I'm fairly sure you can do this in 11.5, if not, definitely can do it in v12.

1. Head to Accounting -> Payroll -> Quick Menu, the reason I suggest this is that you'll be using other items in the menu, and this has them right at hand

2. Select Maintain Tax Type, then select ADD. Enter the new tax type of Employer Unemployment tax, it will ask for basic info. Select the SAVE button, then close the Maintain Tax Type window by clicking on CLOSE

3. Select Maintain Tax Tables , then select ADD. From the list choose Generic: Flat Tax. The screen will then open and you can add a description. You then select the tax type you created in step 2, enter the percentage that is taxed, then select the there is a cap checkbox. The Cap: Gross entry box will open and you will enter the max amount there. Select the SAVE, and then close the Maintain Tax Table window.

4. Select Maintain Item Description, select ADD. The window that pops up will ask what you want to add, you will select employer liabiilty. On the next window you'll add an item number, a description, the liability account number, the EXPENSE account where the funds are coming from , and finally UNCHECK the Non-Tax Item box, then select your new tax type from the list. Select the vendor who you send the funds to, and you're done, click on SAVE.

5. Add this to every employee. The system should then keep an eye on the gross pay and stop accruing the employer payment.

Does this help?
Neil Zampella

Using PC+ since 1999.

PennyR
Posts: 5
Joined: Wed Sep 12, 2018 2:33 pm

Re: Accruing unemployment taxes in payroll

Post by PennyR »

Thanks. We are actually on 11.1, not 11.5. The option of choosing employer unemployment tax is not on version 11.1. I will be eager to upgrade to version 12 so we can do this.

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: Accruing unemployment taxes in payroll

Post by NeilZ »

PennyR wrote:Thanks. We are actually on 11.1, not 11.5. The option of choosing employer unemployment tax is not on version 11.1. I will be eager to upgrade to version 12 so we can do this.
Penny ... are you saying that you can't select a tax type under employer liability? As the unemployment tax is a tax type you create.
Neil Zampella

Using PC+ since 1999.

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