Macola Payroll Users – please note change in FUTA tax



The Federal Unemployment Tax Act has announced the surcharge of 0.2 percent
has expired as of June 30, 2011. The Government has released documentation
indicating this surcharge will not be reinstated. Starting July 1, 2011 the FUTA
rate for employers is 6.0 percent. The surcharge was originally enacted in 1976,
and Congress has extended it several times since.


Exact is aware that the FUI/FUTA rate has changed effective July 1. If users
of Payroll make the percentage change for FUI in current code, the program will
do a Year-to-Date adjustments; making the change effective January 1, 2011.
Therefore, you must not change the current Payroll setup.


Exact will be releasing an update for the Macola Progression and ES software
that will allow users to change the percentage for FUI and have the change be
effective as of July 1, 2011. This change will add a checkbox in Payroll Setup
for  Adj FUI% QTD similar to the Adj SUI% QTD option.  The software will look at
taxable FUI wages QTD to determine the adjustment that must be made to the FUI
‘tax’ and therefore calculate a negative amount and create the appropriate
journal entry making the change effective July 1, 2011 (or the start of the
current quarter).


Please watch the Payroll Downloads page (00.825.030) for further information
and the release of this offering.