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Home > Business & Careers > Payroll   »   Futa tax

 
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Old Apr 29, 2008, 05:49 AM
Sld5877
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Futa tax

do you pay 7000.00 cap on the employee social or employer EIN number? we changed payroll companies and it started all over as if none of our employees met the 7000.00 cap.

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Old Apr 30, 2008, 12:11 PM   #2  
Wildsporty
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Quote:
Originally Posted by Sld5877
do you pay 7000.00 cap on the employee social or employer EIN number? we changed payroll companies and it started all over as if none of our employees met the 7000.00 cap.

You should not start over with the 7000.00 Futa cap unless you change EIN numbers. Just because you change payroll companies does not mean it starts over. Contact your payroll company and have them correct the error. You will have to let them know which employees have met the amounts. The same goes for the SUTA cap and the FICA cap.

I would not change payroll companies in the middle of the year too much can go wrong. The old payroll company needs to send reports to the new payroll company and let them know how it ended on the last payroll the processed.

I would think your new company would know this. It is a little strange that they do not...what other payroll rules do they not know????

Shirley
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