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TRACONE
07-15-2011, 02:51 AM
Do I need to physically change the FUTA rate for 3rd and 4th quarter 2011 or will this be handled in an update?
Paul Mayer
07-15-2011, 10:41 PM
Actually if you have not paid your FUTA tax through June and if some of your employees have not earned more than the wage limit of $7,000 you will need to track the wages.

The instructions from the IRS are in this announcement:

http://zpay.com/vbulletin/showthread.php?3250-FUTA-Surtax-No-Longer-in-Effect

In most cases, the employees have passed the wage limit and there is no need to track anything. But if that is not your case and since this is a partial year change, you will need to track wages and follow those instructions to get the taxes paid.
Penelope Schrader
11-16-2011, 10:10 PM
Is there anyway that I can change the Tax report so that I can accrue the right amount of Company tax liability?
Paul Mayer
11-16-2011, 10:42 PM
Is there anyway that I can change the Tax report so that I can accrue the right amount of Company tax liability?

Not even the IRS has figured out what to do yet. The only guidance we have is posted here:

http://zpay.com/vbulletin/showthread.php?3262-Could-Be-Wide-Discrepancy-in-FUTA-Tax-Rates-for-the-2011-Tax-Year

You would use the "Wage Reports" under the Report Center to get the wages subject to FUTA and multiply it by the rate for the periods up through June 31st and then for the periods after July 1st.

The Form 940 has not yet been released by the IRS and I'm sure it's because they are still trying to figure out how to make it simple for the employers.
Penelope Schrader
11-17-2011, 05:01 PM
Under "Tools" there is the Federal Tax table. Would it take different rate for different month to make the correct calculation?
Paul Mayer
11-17-2011, 05:43 PM
Under "Tools" there is the Federal Tax table. Would it take different rate for different month to make the correct calculation?

The best thing to do is to do what I told you in my last reply since it is an absolute way to get the calculations for each month. You can change the FUTA rate if you want in the Company Override but the big problem is reporting at the end of the year when the IRS figures out what the new 940 form will look like.