How to troubleshoot percentage-based tax calculations

Why did Sage BusinessWorks calculate more (or less) tax for this tax period?

1. The tax rate or limit was changed. For FICA (OASDI and Medicare) or FUTA, check PR, Taxes, Maintain Tax Tables (US), Allowances Limits and Rates. For SUI or SDI check PR, Taxes, Activate States. Always enter percentages as whole numbers. For example, enter 6.2% as 6.20 in Sage BusinessWorks.
2. A manual payroll calculation was performed on a previous payroll (or bonus check). When a manual payroll calculation is performed, Sage BusinessWorks makes no adjustments to the figures entered. Taxable pays and taxes must be entered manually. For example, if the tax is entered but the taxable pay field is left blank, Sage BusinessWorks will calculate less tax on the next payroll, because the employee's taxable pay for the year is lower than it should be. (If this happens, the taxable wages will need to be corrected in Manual Payroll Calculation the next time you calculate a timecard for the employee.) See How to correct taxable pay in Manual Payroll Calculation.pdf.
3. A non-taxable deduction or other pay was added, or the taxable status of an existing deduction or other pay was incorrect. If the taxable status of a deduction or other pay is incorrect and this deduction or other pay has been used for an employee, the taxable pay will need to be corrected in Manual Payroll Calculation the next time you calculate a timecard for the employee. See How to correct taxable pay in Manual Payroll Calculation.pdf.
    NOTE: Changing the taxable status without also adjusting the employees' taxable pay will result in incorrect taxable pay and may effect quarterly or annual tax reports to be incorrect, like the W-2s. 
4. Mid-year changes to SDI or SUI - Anytime the SDI or SUI rate is changed the system will try to adjust the calculations based on year-to-date taxable pay amounts.  For further information see How percentage-based taxes are calculated. Occasionally a state will change the SDI or SUI experience rate in mid-year and not make the change retroactive to the beginning of the year. In this case, it is necessary to disable the self-adjusting feature of Sage BusinessWorks for those taxes. See  How to disable the self-adjusting feature for SUI and SDI.
5. Tips may have been added to a timecard. If CASH tips are added to a current or previous timecard, Sage BusinessWorks will then calculate the OASDI and Medicare to be withheld. Run a payroll register for the employee in question for year to date. Scroll to the last page to look at the report totals for the employee to see if there are any amounts for CASH Tips. If this was in error you will need to void and reissue the check that included the cash tips.
6. If an employee has met the threshold for additional Medicare withholding (over $200,000) an additional .90 will be calculated. This could cause an unexpected calculation.

Overriding SUI or SDI adjustment.pdf