Calculation Methods for Other State Taxes
You can use these calculation methods for unemployment insurance (SUI), disability insurance (SDI), family medical leave insurance (FMLI), Massachusetts EMAC and Vermont Child Care taxes.
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 |
Like 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. |