Setting Up Unemployment Insurance Rates

Access the Unemployment Insurance Rate Revisions form.

Tax Type

Enter the code that indicates the type of payroll tax being processed. This is a UDC (07/TX). To set up state minimum wage amounts, you must enter MW in this field. To do so, you must first add MW to UDC 07/TX. However, you should not change the codes and definitions that are provided with the software.

To enter state-specific unemployment insurance information, enter C in this field.

Tax Authority

Enter a code that identifies a geographical location and the tax authorities for an employee work site, including employee and employer statutory requirements. This code is synonymous with the GeoCode. To determine the valid codes for your location, refer to the documentation for the tax calculation software that you are using. For example, enter 33 to specify New York.

Effective Dates Of Rates- From:

Enter the first date in a range of effective dates.

Note: For state-specific unemployment insurance, if you enter a past date, the system begins using the associated rate during the next payroll cycle. The system does not self-adjust or retroactively calculate tax amounts that have already calculated.

Rate

Enter the rate that the system uses to compute U.S. unemployment and Canadian employer-paid employment insurance premiums. This rate is represented as a decimal fraction.

Exc. Prm. (exclude premium)

Enter the code that indicates whether the premium portion of overtime pay should be excluded from the calculation. For workers compensation rates, this field relates to only those pay types that are defined in the Workers-Compensation Insurance-Basis Table. For U.S. unemployment-insurance rates, this field relates to all pay types that are defined as taxable. For Canadian employment-insurance rates, this field should be set to No because premium pay such as overtime is not excluded from employment insurance in Canada.

For pay tables that are used for step progression processing, this field should be set to No.

Annual Earn Limit

Enter the annual limit for U.S. unemployment insurance premiums or Canadian EI insurable earnings.

Minimum Hours

Enter the minimum number of hours that must be worked during the pay period before the tax authority considers a week has been worked.

Minimum Amount

Enter the minimum amount of dollars that must be earned (paid) during the pay period before the tax authority considers a week has been worked.