What is FUTA?
FUTA (Federal Unemployment Tax Act) acts as one of the essential payroll taxes that every business owner needs to pay to the government for the welfare of the workers. The main objective of FUTA is to provide benefits to the workers who lose their employment without any mistakes. There are particular protocols for FUTA for different employees in an organization. The FUTA error in SAGE 50 encounters while reporting to IRS through form 940. Form 940 due date is 31st January. However, there are an extra ten days for the people who have already deposited the taxes. AccountsPro will cover the troubleshooting steps of Sage 50 FUTA error moreover feel free to connect Sage Accounting Support team for help .
FUTA Error In SAGE 50 Accounting
This error usually occurs when Payroll monitors calculations and found any withholding wrongly allotted to an individual employee. Thousands of Sage 50 users experience this FUTA-related issue annually. When the Payroll FUTA does not match then error popup displays on the screen. AccountsPro will guide you Sage 50 Payroll Errors so you can resolve it yourself through some troubleshooting solutions.
Sage 50 FUTA Not Found Error
Major causes associated with FUTA could not found error:
- Missing latest tax update
- Inactivated product
- Incompatible version
- Incorrect payroll settings
- When attempting to issue Payroll in an inaccurate date
AccountsPro guide about Sage 50 Payroll Formulas which helps you to create, edit or modify details anytime.
How To Fix FUTA Not Calculating Tax Sage 50 Error
Quick fix solutions of Sage 50 FUTA error:
- Navigate Help option, About Sage 50 Accounting, Check that Installed Tax Service contains a present year(In case latest tax update is missing you need to install the updates)
- Now locate the file, click on Payroll Formula and then select Sage-Maintained Formulas
- Monitor all the formulas for the present year are present on the drop-down named Formula ID (The format for formula name should contain the year )
- Discover Maintain, hit on Default information and then click on Employees
- Search for Employee fields option. Monitor the tax fields are verified to compute (calc) and set to use the accurate formulas:
- Federal Income Tax: FIT
- Local Income Tax: **LIT
- Social Security: FICA EE
- Medicare: Medicare
- State Income Tax: **SIT
- Locate company fields option, monitor the tax fields are verified to determine (Calc) and set precise formulas:
- Federal Unemployment tax: FUTA ER
- Social Security: FICA ER
- Medicare: Medicare
- State Unemployment tax: **SUI
- Hit on OK
- Locate Maintain and then select Sales Reps/Employees
- Check that each employee record the taxes on both Company fields and Employee Fields are verified to Use Defaults
- Search Withholding option and monitor whether a valid filling status is there through choosing the drop-down list, check Federal, Local or State is chosen
- Monitor State Locality is utilizing the accurate state abbreviation i.e. must contain the official 2-letter postal
- On any modification on the employee record, you need to save the changes by hitting on Save button
- After that make a paycheck and then check that the FIFA error has been fixed or not.
Solution 2-Inaccurate Payroll settings:
- Choose Maintain, click on Payroll, and then hit on Payroll Settings.
- Locate the Taxes box and choose Assign Tax Fields
- Already assigned fields that are set up in the payroll category so that it would be utilized for the Tax Liability report, Federal, W2, and state forms.
- Company-Paid Taxes acts as business taxes Like FUTA and other state taxes.
- Employee-Paid State Taxes are known as extra Employee taxes that would be assigned.
- Hit on Finish button to save the modification
Solution 3-Rename & re-classify payroll fields:
- Discover Maintain, click on Payroll, Rename and reclassify fields
- Check the entire above-mentioned fields that are properly assigned including the accurate category have been chosen or not
- Hit on Save and then click on Close
Solution 4-Voided Paychecks:
- Navigate Lists and then select Employees & Payroll, Paychecks.
- Adjust the Date Range to This Year
- Search the list through check number by hitting on Check No. or column header.
- Verify there any voided paychecks if found delete it
- Execute the tax form and now check the amounts are now correct
Solution 5- Absence of specified formula in User-Maintained Formulas:
- Locate File option, and then click on Payroll Formulas, User-Maintained Formulas
- For Formula Name, fill XXSUI ER YY, where XX refers to state abbreviation, whereas YY represents current tax year abbreviation
- Apply Effect on gross pay to Subtracts from gross
- Adjust Filing Status to All
- Apply how you classify this formula to Tax
- Add Tax Agency to State
- Choose your preferred state listed in the drop-down box
- Verify Use this formula as a filter on the payroll Tax report
- write the below-written formula in the formula box
LIMIT=0000.00; “This value pulled from Taxinfo.dat”
PERCENT=0.00000; “State Unemployment Rate: (%) entered by the user”
- Modify PERCENT & LIMIT to the accurate limit and percentage as applied through State
- Hit on Save
- Make a paycheck and check that error has been fixed.
Solution 6- Verify Employee Settings:
- Locate Maintain, hit on Payroll, and then select Employee Defaults.
- Discover Employee or company field’s option and then choose the Adjust option for neither the tax that is nor operating as expected on the form
- Check whether the gross is accurately set or not
- Verify the employee defaults and then choose to Maintain, then click on Sales Reps/Employees
- Monitor if the employees have not selected the box named Use Default then choose Adjust option and check the adjusted gross is properly set
Solution 7- Manually filled paycheck deductions:
Check out entire deductions that were placed manually in the accurate payroll box
Solution 8-Inaccurate date range:
- Tax liability report is dependent upon check date
- Modify the range of date including check and end date
Help FUTA Tax Stopped Calculating Sage 50 Payroll
The above article is enough to rectify Sage 50 FUTA Error but, still, if you experience any trouble, with no delay reach Sage 50 Support Number . The Sage professional provides 24-hour availability service to figure out all your doubts and serve you on time with better resolution. Meanwhile, you can send all your queries through an email address or for an instant assistance Sage 50 Chat with one of the sage expert.