Defining Alabama Employee (Suta) and Security Assessment Taxes

 

Company Level Code defining the Employee SUTA Deduction (Percentage Based)

NOTE: ALABAMA NO LONGER HAS AN EMPLOYEE SUTA DEDUCTION, THIS INFORMATION IS FOR HISTORIC REPORTING ONLY.

The XYZ Company sets up the Alabama Employee Tax (Suta) code as follows:

• For this sample, the wage base is $8,000.
• The Employee Suta rate is .05% (for this sample company -- often this rate is 0.00%)
• The maximum per tax year is $4.00. ($8,000 x .06%)

One Company Level Code is required to automate the Employee Suta as detailed above.

Lets examine it in detail.

Field	Value	Comments
ID	82	The number assigned to this Code is determined by the user who created it. The only limitation is that they be between 80 and 84 due to the fact that these codes have been especially set up in CCS Payroll for State and Local taxes - Taxation of codes 80-84 are handled in the same maner as the SUTA code (code 93)
Description	Alabama Employee UI	The text AL and UI are both required here. Any other description is optional.
Category	D	Employee Tax.
Type	02	Percent of Gross
Frequency	0	Every Pay Period
Amount	0.05	For this sample company the rate is .05 % (or .0005)
Limit	4.00	For this sample, the wage base limit is 8,000 so 8000 x .05% = 4.00
Balance	0	No Balance is required for tax codes.
Tax Entities	All checked	This tax is not a pre-tax deduction to any other tax.
Global	Checked	Mark this global if all employees of the company are liable for this tax.

NOTE: ALABAMA NO LONGER HAS AN EMPLOYEE SUTA DEDUCTION, THIS INFORMATION IS FOR HISTORIC REPORTING ONLY.

 

Company Level Code defining the HI Employer Tax (Percentage Based)

The XYZ Company sets up the ESA code as follows:

One Company Level Code is required to automate the HI tax as detailed above.

Lets examine it in detail.

Field	Value	Comments
ID	83	The number assigned to this Code is determined by the user who created it. The only limitation is that they be between 80 and 84 due to the fact that these codes have been especially set up in CCS Payroll for State and Local taxes - Taxation of codes 80-84 are handled in the same maner as the SUTA code (code 93)
Description	AL Security Assessment	The text ESA or Security are required here. Any other description is optional.
Category	X	Employer Taxes
Type	02	Percent of Gross
Frequency	0	Every Pay Period
Amount	0.06	For 2005 the tax rate is .06%
Limit	$4.80	For 2005, the base wage limit is $8,000. So 8000 x .0006 = 4.80
Balance	0	No Balance is required for tax codes.
Tax Entities	All checked	This tax is not a pre-tax deduction to any other tax.
Global	Checked	Mark this global if the company is liable for this tax, for all employees of the company.

If you wish to make the payment for these taxes via the CCS Payroll Program, add the necessary banking information by clicking on the Bank button. Remember to click the "Show Address" checkbox and fill in the agency name & address if you will be paying with a paper check. Also click on the Multiple Weeks checkbox unless you want each pay period's line item listed separately.

Note: If you pay SUTA taxes to more than one state, you will need to assign these codes specifically to those employees that are subject to this tax, and un-check the Global option.

Hint: If you link this code to your AL Suta code, it will always appear on the paycheck when your AL Suta code appears. See Links with code for further information.

 

The example above is for Alabama employers; however, the CCS Payroll program has the ability to incorporate and handle any state or local tax requirement.