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Senior Explorer ***

Texas Employer tax and rate

I am in Texas and have LLC trying to do payroll with w2.

as an employer, my understand that i have to pay

- Federal unemployment tax

- Medicare 

- Social Security


why there is something call Medicare Employee Addl tax?

Does Texas subject to TX - unemployment ?  if so what is the rate because qb doesn't set the rate.




Re: Texas Employer tax and rate

Welcome to the Community, fd_com.


The Additional Medicare Tax applies to employee reaches $200,000 in a calendar year. Allow me to provide further information.


The Internal Revenue Service (IRS) implemented and added this tax as part of the Affordable Care Act since 2013. Employers must withhold a 0.9% Additional Medicare Tax on top of the 1.45% Medicare.


To learn more about this tax, refer to these articles:

On the other hand, if you are a new employer, you'll be assigned a rate until you have filed State Unemployment Insurance (SUI) taxes for a period of time. The state agency will inform you about your tax rate yearly. 


Please see Payroll Tax Compliance to check for your SUI rate.


Once you have the rate, enter it in QuickBooks. Here's how:

  1. Go to Lists.
  2. Choose Payroll Item List.
  3. Right-click on TX - Unemployment Company payroll item and select Edit Payroll Item.
  4. Click on Next until you reach the Company tax rates for 2019 window.
  5. Enter the rate,
  6. Select Next and Finish.

For your visual reference, I've attached some screenshots below. P1.PNG






I'm linking an article about the SUI overview


That should do it. Let me know if you have any questions by leaving a comment below. I'll get them answered for you.

Established Community Backer ***

Re: Texas Employer tax and rate

For state employment taxes, I suggest going to the source