Introduction

Total Burden is calculated by summing the following burdens:

• Federal Unemployment Burden (FUTA)

• FICA Burden

• Medicare Burden

• State Unemployment Burden (SUTA)

• Other Burden

• Workers Compensation Burden

NOTE: If a contractor or vendor is the recipient of payment, only the Other Burden is used.

Federal Unemployment Burden

FUTA Burden = Pay Amount * FUI Burden Rate (found on the associated Corporation's Federal window) unless the Employee's Payroll/Tax record indicates that the employee is FUTA exempt for the associated corporation).

NOTE: FUI Burden Rate can be overridden at the state level.

FICA Burden

FICA Burden = Pay Amount * FICA percentage (supplied by the tax software that comes with StaffSuite) unless the Employee's Payroll/Tax record indicates that the employee is FICA exempt for the associated corporation.

Medicare Burden

Medicare Burden = Pay Amount * Medicare rate (supplied by the tax software that comes with StaffSuite) unless the Employee's Payroll/Tax record indicates that the employee is FICA Medicare exempt for the associated corporation.

State Unemployment Burden

SUTA Burden = Pay Amount * SUI Burden Rate.

First, the system must determine the unemployment state tax authority. It does this by checking the SUI Reporting Basis field on the Corporation record. If the reporting basis is:

• Employee Branch: The default Unemployment State associated with the Branch in the Branch record is used.

• Employee Resident: The state on the Employee's Payroll and Taxes screen (State Tab)  is used.

• Employee SUI: The SUI state on the Employee's Payroll and Taxes screen (SUI Tab) is used.

• Work State: The State Tax Authority from the Assignment Work Location is used.

Once the system determines the proper state, the system checks the Burden % field on the State window for the associated Corporation. This is the rate used (if one exists) unless the Employee is SUTA exempt.

If there is no burden for the state, the system uses the burden set up for the Branch that owns the Order (that owns the Assignment).

If there is also no burden set up for the Branch, then the burden is 0 (zero).

Other Burden

Other Burden = Pay Amount * Burden % (found on the Profit Measures screen of the Staffing Service associated with the Branch that owns the Company that owns the Assignment).

Workers Compensation Burden

In order to calculate Workers Compensation Burden, you will need to know the following:

• the corporation that owns the assignment

• the assignment work state (or company default work state if no assignment work state present)

• the branch that owns the order

• the assignment's workers compensation code

Once you have this information, find the burden rate using the combination of the corporation, state, branch and code on the Workers Compensation Information window.

Workers Compensation Burden = (Pay Amount * Workers Compensation State Burden Rate)/100 hours or dollars (used when the Workers Compensation Code includes the premium portion of the pay amount).

Workers Compensation Burden = ((Pay Amount * PayBill Code Type of Hours Factor) + Workers Compensation State Burden Rate)/100 hours or dollars (used when the Workers Compensation Code excludes the premium portion of the pay amount).

PayBill Code Type of Hours Factors are as follows:

• Overtime = 2/3

• DoubleTime = 1/2

• TripleTime = 1/3

Related Topics: