How do I change my SDI or SUI rates?

Because SDI and SUI rates vary from one company to another, Sage BusinessWorks uses the percentages defined in PR, Taxes, Activate States.

Record new SDI and SUI rates as follows:

  • Go to PR, Taxes, Activate States
  • Select the state
  • Enter the rates for SDI and SUI as percentages. For example, enter 1.9% as "1.9" (without the quotes)

**IMPORTANT**:

  • Sage BusinessWorks tax table updates do not update the SDI or SUI rates for existing companies when there is a rate change. If the company has already been Activated/created, when there is a change to the state SDI or SUI rate, the user must update it manually in Activate States.
  • The limits for SDI and SUI are maintained in PR, Taxes, Maintain Tax Tables. SDI and SUI limits are changed with tax table updates.
  • The SDI and SUI rates in Maintain Tax Tables are used to set the default values for newly-created companies only and should be updated manually to the correct rates set for the company before you process your first payroll. The rates in Maintain Tax Tables are NOT used when calculating taxes, only the rates in PR, Taxes, Activate States are used.)

Sage BusinessWorks calculates percentage-based taxes (OASDI, Medicare, SDI, SUI, and FUTA) on year-to-date taxable pays rather than the taxable pay for the current pay period. For more information, see article #17613 'How percentage-based taxes are calculated

IMPORTANT: If you are changing the rate mid-year and/or you do NOT want the system to self-adjust the new rate going back to the beginning of the calendar year, see article in Related Resources #17783 'How to disable the self-adjusting feature for SUI (SUTA) and SDI'

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