Getting There

1. From the Procare Home screen go to Configuration > System > Locations & Users > Regions & Schools.
2. FUTA is set at the region level while SUTA is set for each individual school.
   1. For FUTA click the name of the Region once to select it then click the Set Options button.
   2. For SUTA click the plus sign (+) next to the Region Code to see the schools in that region. Click the name of the School once to select it then click Set Options.
3. At the Options screen select Payroll (left side).
4. Click the plus sign (+) next to Futa 1 or Futa 2 (or Suta 1 or Suta 2) and enter a Tax Year, Wage Base and Share for the employer and employee (if applicable). See examples below.

Note: You must enter information for the current year, although you may store rates for up to two years at a time. Use either Futa 1 or Futa 2 (or Suta 1 or Suta 2)  for the current year. The correct year will be selected automatically for tax calculations.

FUTA (Federal Unemployment) Settings

FUTA is paid by the employer only. There is no withholding for the employee. Taxes are paid on the first $7,000 in wages for each employee. This is known as the wage base. See: IRS Publication 15 for 2012 (page 29)

• Before July 1, 2011 the tax rate was 6.2%, however, employers received an offset credit for the amount paid for SUTA (State Unemployment) of up to 5.4%. Therefore, the net FUTA tax rate was generally 0.8% (6.2 - 5.4 = 0.8).
• Beginning July 1, 2011 the FUTA tax rate decreased to 6.0%. If you qualify for the full 5.4% credit your net rate would be 0.6% (6.0 - 5.4 = 0.6).

IMPORTANT! You MUST manually edit the FUTA setting to account for this mid-year change. If you later print reports that include the 1st half of 2011, be aware the numbers will be based on your current settings. You may wish to set it to the old rate to run 1st half of 2011 reports, then change it to the new rate for 2nd half of 2011 reports. This affects the Tax Deposit and 941 reports only. It does not affect paychecks issued to employees.

FUTA Example: Rates BEFORE July 1, 2011

SUTA (State Unemployment) Settings

SUTA is also paid by the employer although a few states also require the employee to pay a share. The wage base and percentage vary according to your state. Rates may also depend on the type of business you have and your history of layoffs. For a general idea see this sample of State SUTA Tax Rates (based on 2010). Please confirm the correct wage bases and rates for your business with your tax adviser or state bureau of labor.

SUTA Example