Calculation Methods for Other State Taxes
You can use these calculation methods for unemployment insurance (SUI), disability insurance (SDI), and family medical leave insurance (FMLI).
Calculation method |
Run types |
Self-adjustment method |
What it does |
---|---|---|---|
Flat Rate |
Regular and Supplemental |
No self adjust |
Withholding calculations don't self-adjust retroactively for any rate changes. If a back-dated rate change occurs, the payroll process uses the new rate only for the current run's taxable wages |
Flat Rate |
Regular and Supplemental |
Self adjust |
Bases the withholding calculations on year-to-date earnings, instead of earnings within a particular pay run. This provides the most accurate calculation. For retroactive rate changes, the payroll process self-adjusts the tax withholding or liabilities in the next available pay run. |
Flat Rate |
Regular and Supplemental |
Self adjust at maximum |
Similar to the Self Adjust method, except adjusts for changes but only after the maximum annual taxable wage base is reached. |
Flat Rate |
Regular and Supplemental |
Quarterly self adjust |
Performs adjustments for rate changes on a quarterly basis. Available for state taxes only. Use this method in cases where a state changes its rate midyear. By checking each quarter individually to determine adjustments, it maintains the integrity of the calculations before the change. |