SUI Out of State Wage (OOSW) Reporting

Hello there,

I’m a payroll professional currently supporting an organization with employees in 48 U.S. states. It’s common for us to allow employees to relocate throughout the year and move to a new state as much of our workforce is remote.

We utilize a third party agency to assist in our tax filings and an issue we have been coming into lately is with out-of-state wages for our SUI contributions.

We have one recent example where an employee moved from Texas to Utah mid year (Texas wage base was $9,000 and Utah wage base was $48,900). Since the employee already had contributions applied to the $9,000 in Texas, they should only have contributions applied to $39,900 in Utah. Our payroll system calculated this correctly, however, the state is trying to charge us $90.00 for an additional $9,000 in wages.

Our TPA claimed that they contacted Utah and were told that Utah does not accept out-of-state taxable wages on wage detail. Therefore, we are forced to pay additional contributions.

My question essentially is this… Do any other payroll professionals out there encounter this issue? Have you found a way to make this part of tax filing easier?