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Why did my tax amount increase?

Tax amounts can increase for a variety of reasons. Below are some questions to help you determine why you may be seeing an increase in tax amounts.

Employee Payroll Taxes

Did anything change for this employee, such as:   

  • pay frequency
  • allowances
  • marital status
  • taxable wages
  • rate of pay
  • new taxable earnings or deductions (change from a pre-tax to a post-tax). 

Employer Payroll Taxes

  1. Did you change your Pay Frequency?
  2. Did the agency increase your rate and/or supply a rate notice (SUI)?  Was there a SUI rate update communicated to us from the agency directly?   
  3. Did your State make changes to the wage limit for SUI Taxes?
  4. Were you previously listed as exempt and changed to subject for any taxes?
  5. Is it the start of a new year when tax limits start over? 
  6. Is it January and were you listed as SUI exempt for the year and now owe additional FUTA monies that are due?
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