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Hello there, Ahead4numbers.
First, we need to make sure the SUI tax exemption is checked on your employee's profile. Once done, our system will automatically accrue FUTA liability at 6% moving forward. Here's how:
- Click Workers, then choose Employees.
- Choose an employee, then click to open the profile.
- Click the Pencil icon next to Pay.
- Click the Pencil icon under What are Employee's withholdings?.
- Click Tax exemptions.
- Put a check mark in the SUI box.
- Click Done.
Please check the screenshot as your reference.
Once it's updated, I suggest contacting our payroll support to create a payroll adjustment for 2018. Here's how:
- Click Help inside QuickBooks Online.
- Choose Contact us.
- Enter a brief description of your issue, then click Next.
- Choose either Message an agent or Talk to a Specialist.
You're always welcome if you have other payroll concerns. Have a good one!
Thank you but blanket answers like "Once the taxes are set up correctly, QuickBooks Online (QBO) calculates taxes/liability correctly" are a waste of your time and mine. This is not helpful and it’s not true.
I reached out to the community for help BECAUSE
1.) your Help Articles did not answer my question and
2.) your Customer Support insisted that in order to get the FUTA “employer rate” of 6%, I need to buy the QuickBooks Self-Employed version (seriously? Ridiculous!!)
Here is the issue in QBO Payroll: I have an Officer who is exempt from Washington State Unemployment Insurance.
In the employee record, under tax exemptions, the box is checked for Is an Exempt Corp Officer.
The FUTA rate for this person should be 6%.
However, QBO Payroll is applying the regular effective rate of 0.6%. As a result, the payroll taxes, liabilities and 940 Form are all incorrect ($42 should be $420).
Has anyone in the Washington User Community experienced this problem with employer taxes?
Hey there, @ahead4numbers.
Let me guide you on how to change your tax rate in the Payroll Settings.
I've tried this on my end and was able to change the rate of my employee. You may follow these steps to guide you:
- Click on the Gear icon, choose Payroll Settings.
- Click on Tax Setup.
- Click on Washington under State Tax Information.
- Under WA SUI, click on Change or add new rate.
- Enter your new rate and the Effective Date.
- Click on OK.
Once done, QuickBooks will now automatically apply the new rate on your next paycheck.
Please leave a comment below if you have any other questions. I'll be here to provide assistance.
Hello ahead4numbers,
Thank you for continue posting here in the Community.
Let's take a look at Kristine Mae's answer. Once the employee is exempted for SUI, the system automatically adjusts the employer's FUTA tax rate to 6% for the first $7000/00 taxable wage. That is correct. Moving forward, QuickBooks Online Payroll will use the 6% tax rate for FUTA for this employee.
You may run the Payroll Tax and Wage Summary report and customize the period to this year. It helps you identify the payroll taxes calculated for the employee's wage. If the FUTA tax amount isn't correct, let's wait until the end of the quarter or until the employee reached the allowable taxable wage ($7000.00) to see if the system applies the adjusted 6% rate.
For any questions/issues about FUTA tax liabilities for 2018, please reach out to our payroll support team. They will pull up your account and make create a payroll correction.
To get our phone number:
- Click Help inside QuickBooks Online.
- Choose Contact us.
- Enter a brief description of your issue, then click Next.
- Choose either Message an agent or Talk to a Specialist.
Please post more questions. We're here to help. Have a great day!
Hi there, rsanders.
Welcome back to QuickBooks Community. I appreciate the complete details you've shared about your concern in calculating FUTA.
A cache full of history and temp files can cause unexpected behaviors, such as unable to open the Exemptions page to see if the SUI box is checked. I recommend logging in to your QuickBooks account using a private browser. This is to rule out the possibility of a webpage issue, and private browsing doesn't store local files or cache.
Use these keyboard shortcuts based on the browser you're using.
- For Firefox or Microsoft Edge, press Ctrl + Shift + P.
- For Chrome, press Ctrl + Shift + N.
- For Safari, hold down Command + Shift + N.
If it works in incognito, I recommend clearing the cache of your regular browser. This removes the history or log of sites so you can start with a clean slate. You can check this article to see the steps: Clear cache and cookies to fix issues when using QuickBooks Online.
If the steps above didn't work, use another supported browser as alternatives.
On the other hand, yes, there's another option to see if the SUI box is checked in the employee's information. You can run the Payroll Summary by Employee Report. From there, you're able to confirm if the SUI box is checked once this detail is shown on the report.
Here's how:
- Click the Reports menu on the left panel.
- Choose the Payroll Summary by Employee in the search box.
- Filter the date range with the correct date.
- Click the Run report button.
Then, since the W-4 form is completed by the employee and used by employers to calculate how much income tax to withhold, this will not affect the FUTA calculations.
Please refer to this article to see different details on how you can troubleshoot and QuickBooks information about lines on Form 940: How QuickBooks populates the 940.
I’d be glad to help some more if you have other questions about FUTA calculation or any QuickBooks Online concerns. Have a great day.
