If the company’s Florida SUTA wage base was $7,000 for all of 2010, you can disregard this procedure.

In March, 2010, the state of Florida mandated that employers change the SUTA wage base back to $7,000 (from $8,500) retroactive to January 1, 2010. Companies with employees whose wages exceeded $7,000 using the previously announced wage base ($8,500) will need to make Employee Adjustments so the company's accounting records will be accurate.

In order to assist you with the needed adjustments, we have created a special PR Tax Earnings Verify which will create an Employee Adjustments batch ready to review and post. Download and install the March 30, 2010 Tax Update if you haven’t already done so. This Update changes the Florida SUTA wage base to the correct amount of $7,000.

Now follow these instructions:

1. Start 21st Century Accounting
2. Make sure all of the tax configurations are correct, especially the "Earnings include" information.
3. Make a backup of your company, just as a precaution
4. In order to run this special Verify step you need an open payroll pay period which does not contain any unposted calculation information.

   If you have work in progress in your current pay period, then run the Payroll/Close Pay Period Checklist command and Delete or Close the pay period, as applicable.

   To create an open pay period start the Payroll/Calculate Payroll or After the Fact Payroll command, complete the "New Pay Period" dialog and then exit the process.

5. Go to the System/Company/Verify window
6. If your company is not automatically selected, then select it
7. Check the box for the test "Verify PR Tax Earnings by Quarter"
8. Check the box to "Repair damage if possible"
9. Click the Process button
10. The test will ask you for a year and quarter that you want to recalculate. Specify Q1 first, then subsequent quarters in turn, of the current payroll year.

    For each quarter in turn, beginning with Q1, always complete the cycle of steps 5 - 13 (i.e.,Verify, review Employee Adjustments batch, and post). See Note below.

11. As the test runs it will display notes about which employees had discrepancies on which taxes, and basically show the existing values, calculated values, and the adjustment amount
12. When the test finishes, it will have created an Employee Adjustment batch, if applicable, and displays the name of the batch. The test does not actually post the batch.
13. Assuming that an Employee Adjustments batch was created, exit Company/Verify and go to the Payroll/Employee Adjustments command. At this point, you can do as much review or spot checking as you need to satisfy yourself that the adjustments are correct.

    When you complete your review, post the adjustments batch to put the recalculated values into effect

14. Repeat steps 5 - 13 for each quarter

In other words, Q1 must have the right numbers so Verify can calculate the right numbers for Q2, and so forth!