Configure Wage Basis Rules for Hours Worked for the US

In this example, you need to feed all your applicable earnings elements to SUI Eligible Hours as of the start of the next calendar year and configure tax wage basis rules appropriately.

For this example, assume you're:

• Registered for state unemployment insurance (SUI) taxes in Alabama, Massachusetts, and Oregon

• Tracking vacation hours using elements with the Absence primary classification and Vacation secondary classifications

• Tracking sick hours using elements with the Absence primary classification and Sick secondary classifications

• Tracking holiday hours using elements with the Absence primary classification and Other secondary classifications

Alabama has no specific requirement on what hours to include for SUI reporting.

Massachusetts requires you include these hours for SUI reporting.

• Regular hours

• Overtime hours

• Vacation hours

• Sick hours

• Holiday hours

Oregon requires you include these hours for SUI reporting.

• Regular hours

• Overtime hours

Define Balance Feeds

By default, the payroll process includes all hours fed to the SUI state's Eligible Hours balance.

In this example, you need to define wage basis rules that exclude Oregon's vacation, sick, and holiday hours from SUI hours calculation and reduce the hours from the State Worked Hours reporting balance.

1. Define feeds to the SUI Eligible Hours balance for all applicable regular hours, overtime hours, vacation hours, sick hours, and holiday hours elements.

   These earnings hours now accumulate in the SUI Eligible Hours and State Worked Hours balances for Alabama, Massachusetts, and Oregon.

Configure the Wage Basis Rules

Because Oregon requires only regular and overtime hours for SUI reporting, you must define special wage basis rules for Oregon.

You don't need any configuration for Alabama or Massachusetts.

This ensures the payroll process reports the correct hours in the State Worked Hours balance. You configure these rules as subject to the wage basis rule in order to exclude vacation, sick, and holiday hours from SUI calculations for Oregon.

1. From My Client Groups, click Show More.

2. Click Component Groups Rules.

3. Search for your US legislative data group (LDG).

4. Under Component Group, click Regional.

5. In Calculation Component Group Overview, expand Regional, Related Deductions, and then State Unemployment Hours.

6. Select Wage Basis Rules.

7. Enter an appropriate effective date.

8. Under State Unemployment Hours: Wage Basis Rules, click Create.

9. Select OR as the state.

10. Select the Absences primary classification and Vacation secondary classification.

11. Select Yes to make this subject to wage basis rules.

    This excludes the vacation hours from SUI hours calculation and reduces the hours from the State Worked Hours reporting balance.

12. Click Submit.

13. Repeat these steps for the elements that track sick and holiday hours.

    When you complete these steps, you will have three Oregon wage basis rules for the Absences primary classification. Each is marked as Use in Wage Basis.