Mid-Year Notes
If you're starting to use EPS after some payroll has already run this year, some taxes may have already been paid.

• If you have already paid their federal and state unemployment insurance, click the Employees => Edit and mark them as exempt from this tax. These taxes apply to the first $7,000 of income for each employee, but if you paid them may depend on the size of your payroll.

• Similarly, if someone has already earned more than $56,916 in 2004 and paid the SDI tax, you can mark them as exempt from this tax. But if this tax is overpaid, it's not a great problem because it counts towards state withholding and increases the employee's refund or reduces what they owe by the overpaid amount. That is, the employee gets it back.
• Similarly, if someone has already earned more than $87,900 in 2004 and paid the FICA tax, you can mark them as exempt from this tax. But if this tax is overpaid, it's not a great problem because it counts towards federal withholding and increases the employee's refund or reduces what they owe by the overpaid amount. That is, the employee gets it back.
• Remember to remove these exemptions before filing 2005 payroll.