Hello
As we know the FUTA rate was chnaged effective 1st July 2011 from 0.8% to 0.6%(after SUTA offset), we have noticed that currently in the SAP the FUTA contribution is not self adjusting.
As illustrated in below example
OCT 2011 Earnings 2008.13(FUTA paid at old Rate 0.08%-16.07)
NOV 2011 Earnings 2008.13(FUTA paid at old Rate 0.08%-16.07)
After November payroll new FUTA rate has been implemented.SAP calculation as below
DEC 2011 Earnings 7008.13(FUTA paid at new Rate 0.06%-16.07)
Dec calculation = 7000-4016.26= 2983.74*0.006=17.90
As you can see employee has contibuted 50.04(16.0716.0717.90) which is more than the minimum of 42 USD(7000*.006)
Could you please confirm if this is correct behaviour? I remember checkin with BSI back in July and they confirmed that the self adjusting should happen and employee should not contribute more than 42
Can you please confirm
Regards
Ajay