SUI Tax Adjustments/Collection(s) March Pay Cycles

During Q1 of every year, as a courtesy, we try and obtain as many Unemployment (UI/SUI) Rates with the states as possible.  Not all states will be processed due to various reasons.  State Unemployment Rate Exchange, also known as Rate Exchange, SUI Exchange, or Agency Exchange, can be done through a Third-Party Service Provider such as Namely. 

Although Namely does attempt to obtain as many rates as possible it is still the responsibility of the employer to verify/confirm the current year tax rate is correct in Namely Payroll.  Namely will not be liable for any incorrect rates which may result in penalties and/or interest.  The State SUI Rates we update will be identified with “Agency Exchange” in the “Modified By” and a “202X date” in the “Modified Date” field(s) on the affected UI Tax in Namely Payroll. 

If there is an increase in the State UI rate, due to an update by you or by Namely, we will collect any additional tax (if the taxes are under calculated) during a March Pay Cycle which will reduce the variance collection at the end of Q1 202X. If there is a decrease in the State UI rate, we will refund the additional tax during our Variance process when Company Packages are delivered.

**NOTE: Not all collections will be due to a SUI Rate Change.  During this time, we will “catch-up” the taxes if any of the following instances apply:

• A higher SUI rate was input (by Namely or you, the employer) causing a balance due.

• If a manual and/or void was processed where the SUI Tax was not adjusted/collected.

• If an employee moved states, if applicable, taxes will be caught up at this time.

• If a termed employee had wages prior to the rate update.