Sage 100

Client was recently audited and the auditor told them that they were using the wrong number off of their quarterly government report for their SUTA report for CO. They have been using the Gross wages number off the quarterly governement report for several years now. The auditor is telling them that report is incorrect because the gross wages should not include things like prepaid medical. Prepaid medical is setup as a cafeteria plan deduction and the ""reduce state tax unemployment tax"" box is checked. I have never heard a complaint about the gross wages amount on the quarterly government report before....has anyone else run into this??

We have the same thing in NM. SUTA wages follow FUTA wages. The formula is Gross wages minus Cafeteria minus Medical Reimbursement minus Dependent Care = State Taxable wages.

thanks Jane - so what report do you use to report for SUTA?

I had to create a report in Crystal that pulled the correct number from PR3. To get the correct number for state unemployment wages, the deduction must be marked as a deduction type = Cafeteria Plan and then on the Taxes button, under Reduce State Tax, the Unemployment Tax box must be checked.