RDA

Unemployment Deductions

If you have a state unemployment deduction set up in OpenRDA, allowing unemployment wages to compute with payroll, this discussion is for YOU!

Each state has its own rule about what should and should not be included in reportable unemployment wages. For example, the state of Virginia requires that Section 125 cafeteria plan deductions be excluded from reportable wages. Do you know what should or should not be included in your state unemployment wages? If not, contact your state unemployment agency for clarification.

As for the state of Virginia example, which requires cafeteria plan deductions to shelter unemployment, you would need to flag the โ€œShelter Unemploymentโ€ boolean on all your cafeteria plan deductions. This flag is set at the Deduction Type level, so you’d need to first look at your cafeteria plan Deduction Descriptions to see which Deduction Type(s) are assigned to them (for example, it may be INS CAFETERIA), and then go to Setup ? Deductions ? Deduction Types, and flag โ€œShelter Unemploymentโ€ on each of those Types.

If you have any additional questions, please submit a help desk ticket, and someone from our Payroll Team will give you a call!

 

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