SUTA or FUTA taxable wages are off by the amount of a TSA deduction in Microsoft Dynamics GP

This article provides a solution to an issue where State Unemployment Taxes (SUTA) or Federal Unemployment Taxes (FUTA) taxable wages are off by the amount of a tax sheltered annuity (TSA) deduction.

Applies to:   Microsoft Dynamics GP
Original KB number:   864323

Symptoms

In Microsoft Dynamics GP or in Microsoft Business Solutions - Great Plains, State Unemployment Taxes (SUTA) or Federal Unemployment Taxes (FUTA) taxable wages are off by the amount of a tax sheltered annuity (TSA) deduction.

Resolution

To resolve this problem, follow these steps:

  1. Use the appropriate method:

    • In Microsoft Dynamics GP 10.0, point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Payroll, and then select Unemployment Tax.

    • In Microsoft Dynamics GP 9.0 or in Microsoft Business Solutions - Great Plains 8.0, point to Setup on the Tools menu, point to Payroll, and then select Unemployment Tax.

  2. In the Unemployment Tax Setup window, type the two-digit tax code in the Tax Code field.

  3. Select the Tax Sheltered Annuities check box.

  4. Select the TSA deduction that the SUTA or FUTA report is off by, and then select Insert to insert the TSA deduction as taxable wages.

  5. Select Save to save the unemployment record.

More Information

By default, Microsoft Dynamics GP assumes a deduction as tax sheltered from SUTA or from FUTA if the deduction is sheltered from any taxes on the deduction setup. If this deduction shouldn't be sheltered from SUTA or from FUTA, the deduction has to be included as taxable wages in the SUTA setup.