CA ETT withholding should be tied to CA SUI, not SDI

[beamman]

Hi, I am the sole shareholder of a California Professional Corporation. As the sole shareholder, I have applied for and have been granted exemption from SDI (for myself only, not for any of the other employees).

Having done so, I have discovered a problem in the PayWindow software that needs to be fixed (or, at least, someone needs to show me the work-around): I dutifully changed my SDI exemption status to "Y". The problem is that PayWindow then also treats me as being exempt from CA ETT.

That is not the correct result. Apparently, in California, ETT is based on taxable SUI wages, NOT taxable SDI wages.

Please revise the software to address this error.

In the meantime, is there any sort of work-around to this, so that my records in PayWindow (and, in turn, Quickbooks) reflect the accurate withholdings of ETT?

Thanks!

--Roger Kaplan

[Paul Mayer]

Actually if you look at the image below, the top is the edit for California and the bottom shows what it looks like for all other states. Because of the limitations in the tax database, we had to share the employee SDI to be used for California training tax.

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This is not something that can be changed. You have two choices here, track your wages using the wages report and subtract them from the total of all employees when paying the SDI or move up to a payroll service or software that supports this for you.

Sorry.

[beamman]

I'm not sure why it would be all that difficult to address this in future updates of PayWindow. Aren't there special tax entries PayWindow supports for CT? Couldn't some special sub-entry to CA SUTA be made for ETT? I'm no programmer, but it doesn't seem very complicated, and PayWindow is usually so dilligent about other state-specific issues.

By the way, I didn't mean for "SUI" to be quite THAT huge in my original post.....


Thanks.

[Paul Mayer]

The problem is that we'd need to rewrite a lot of code to make a change to the tax tables database routines to split what we've been using as a standard practice for California since 1983 in the first release of PayWindow. The cost for that change would be in excess of $5,000 to make the changes as well as break what every California user is currently using. In this economy where there are no new businesses opening and many of our customers are going out of business and sales being at an all time low, we just cannot justify an expense like that. The workaround I suggested would take you less that a few minutes to calculate each time you need to pay your training tax payment.

[Paul Mayer]

See this page in the help file for the solution that you can use:

http://zpay.com/pw-online-help/module_10_3_2.htm?MenuState=AcOXw5VVXVVfdXfvtIN1XX ddw7XDlXVV77SE77SRw6cAAWcB