FUTA, SUI & ETT (FUTA)

The FUTA, SUI & ETT Routine supports the withholding of Federal Unemployment Tax Act (FUTA), State Unemployment Insurance (SUI) and Employment Training Tax (ETT).

For FUTA, SUI, and ETT, taxes are not to be collected until an employer’s total wages paid to all employees exceeds a government-mandated threshold. Once the wage minimum has been met the taxes must be collected against all wages from the first dollar. When this routine is in use, the system looks to the Employer FICA (EMPLYR_FICA) database table during Gross-to-Net (GTN) processing to determine whether or not the employer has met the minimum wage threshold for the quarter. If the employer has not met the minimum wage threshold, the taxes will not be taken from the employees. Once the employer meets the minimum wage threshold, taxes will be taken from the employees against all wages reported. Taxes will then be withheld from the employee until the employee reaches the maximum wage threshold for the tax being withheld.

Note, if an employer has not met the minimum wage threshold they may still be subject to a tax withholding. A rolling window rule exists that ensure that once the tax is collected in a quarter, it will be collected in all future quarters for the current and following calendar year.

This routine uses the following Amount/Percent fields:

• Amount/Percent 1 - Tax Type (Options are 1 - FUTA, 2 - SUI, and 3 - ETT)

• Amount/Percent 2 - Employer Wage Minimum Threshold

• Amount/Percent 3 - Employee Wage Maximum Threshold

This special routine is only available when utilizing the Next Generation Payroll service.