Setup

You can use Drake Accounting to set up SUTA (State Unemployment Tax Act) rates for single- and multi-location clients.

To set up SUTA rates for an employee:

1. From the side menu, go to Employees > Employee Setup, and select an Employee from the list.

2. Click the State Tax tab.

   • While working in information is pulled from the location's address (Client > Add or Edit > Contact Information tab).

   • If the client has multiple locations and the employee works at more than one location (Works at multiple locations is selected at Employees > Employee Setup > Personal Information tab), select the applicable place of work in the Locations section, located in the upper-right corner of the Employee Setup screen.

   • Locations must be established at Client > Locations for them to be added at Employees > Employee Setup.

3. Select the employee’s State Tax Table for tax withholding purposes.

4. Select the applicable SUTA state.

   Note  This state is used in the State Code field when processing Live and ATF payroll.

Rates

To enter State Rates and Withholding:

1. Go to Firm > Rates & Withholding Setup > State Setup.

2. Select a state from the States list.

3. Either select Global Rates from the Client drop list to enter state rates and limits that are not client-specific, or select a client from the Client drop list.

4. Enter the Tax Rate.

   Note  "Rate" means that you enter the information as a decimal rather than a percentage. (1.5% would be entered as .015).

Employee Contribution

In most states, employees do not make contributions to state unemployment. In some states, however, both the employee and the employer pay SUTA taxes. Currently, Alaska, New Jersey, and Pennsylvania require employee contributions. Other states may add contribution requirements in the future.

If the state requires employee contributions:

1. Set up an employee deduction for the SUI contribution.

   • Make sure to select the appropriate withholding code under WH. Code.

2. Add that deduction to each employee.

See Drake Accounting - Entering Payroll Deductions for more information about setting up deductions.