If you updated your payroll tax tables after completing one or more payrolls in 2007 with the 2006 tax tables, your taxes are probably off in the CA. SDI and SUI areas. After running your Employee Activity Report for the month of January, check your totals at the end and manually calculate to see if you are off. The Ca. SDI rate should be your State Gross x .6%, and your SUI should be your State Gross x your rate. If you did not repost your payroll for 2007 before the first payroll in 2007, your FUTA may be off also.

If your rates are off you will need to go back to these checks, press the TJ button and look at the taxes deducted. You will probably see that there is no deduction for SUI and possibly SDI or that the rate calculated for SDI is off. Check your FUTA withholding also.

Next, make a note of what the amounts are for the tax deductions withheld on the face of the check in the "WITHHOLDINGS" area and what the "NET" of the check is. Then make a change to the check, i.e. change the hours to the same exact number of hours and then hit enter (not F10 to file). In the left hand corner where the word "SELECT" is, you will see it become "CHANGE" and the system will ask if you want to "Re-compute Dollar Amounts?", answer yes. The withholdings WILL change. Go to the withholdings area and manually change these figures back to match what was originally there. The NET of the check HAS TO BE THE SAME as before. DO NOT FILE if the net is not the same as when the check was issued to the employee.

What has happened is that the system has now added the SUI and FUTA payables to the TJ journal. These are Employer taxes only so the employee is not affected on their net of the check but your Employer totals will be right for your reports/taxes. You will need to make a note of what your SDI should have been for each employee and manually add the difference to your SDI area in the "WITHHOLDINGS" on the next paycheck so that you catch up to where you should have been by the end of the quarter.

Re-run you Employee Activity Report for January and you should now see your FUTA and SUI amounts have been corrected. Your Ca. SDI will still be off for January, but will catch up in February and the totals will be correct for the end of the quarter..

We apologize for the inconvenience but we do not receive all tax tables by January 1st of each year. Therefore, at least one payroll is generally affected. Remember for future years, the sooner you install your update the easier it is for your payroll reports or you can manually edit your own payroll tax tables before the first payroll.

We hope this helps and please call our office if you have any questions.