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tlissick
Level 1

I’m the owner of a MN S Corporation and I’m the only employee. I should be exempt from paying employer/employee MN SUI. How can I indicate my company is exempt from SUI?

I set up myself as exempt from MN SUI in the employee detail but I'm still getting a prompt to pay MN SUI employer taxes. I shouldn't have to pay those, right?

1 Comment 1
RCV
QuickBooks Team
QuickBooks Team

I’m the owner of a MN S Corporation and I’m the only employee. I should be exempt from paying employer/employee MN SUI. How can I indicate my company is exempt from SUI?

Let us guide you through the process on how to exempt you and your business from Minnesota State Unemployment Insurance (SUI) in QuickBooks Online (QBO), tlissick. 

 

We can first contact your state unemployment agency to verify if you are exempt from SUI. After confirming your exemption status with the state, you can follow the steps below to ensure your business is exempt from SUI: 

 

  1. Go to the Gear icon on the top menu and choose Payroll Settings
  2. From your [State] tax, click Edit.
  3. Leave the SUI account number blank.
  4. Enter your SUI rate: 0.00%
  5. If applicable, choose any tagalong or surcharge rates: 0.00%
  6. Press OK, and then pick Done.

 

Next, exempt yourself as an employee from SUI. Here are the steps:

 

  1. Go to Payroll, then click Employees.
  2. Choose an employee's name from your employee list and click Edit Employee.
  3. From What are [Employee’s] Withholdings?, tap Edit.
  4. From the Tax Exemptions section, hit SUI and any applicable SUI tagalong or surcharge taxes.
  5. Press Save, then Done.

 

If you have received a tax notice of discrepancy, check out this article on how to handle this one: Send in your payroll tax notice

 

To handle underpaid taxes in the program, refer to this article: Fix underpaid payroll taxes.

 

If you have more questions about SUI tax exemption or payroll-related concerns, revisit this thread.