SUTA Tax Liability and Form not matching

Yes, Troe. You're right. It is due to rounding. Also, QuickBooks calculates payroll items per employee and then totals them, whereas the state calculates the total differently or rounds only the final amount.

Why is this happening, and how can it be prevented?

QuickBooks calculates payroll liabilities for each employee individually and rounds each amount before totaling, whereas state forms round the total at once. To minimize discrepancies, ensure accurate entry of payroll items and tax rates, and maintain consistent decimal settings in QuickBooks. However, rounding differences (a few cents) are unavoidable.

Is there a way to track which employee creates the discrepancy?

You can filter the Payroll Item Detail report by unemployment tax to see individual employee amounts. It helps identify rounding differences, but finding exact cent discrepancies per employee is impractical, as the rounded total is the main issue.

What is the best way to handle the discrepancy?

Enter or correct all historical payroll liabilities and payments on the accurate dates. When entering historical payments or liabilities, always select "Do Not Affect Payroll Liabilities." This action prevents QuickBooks from recalculating payroll tax liabilities on those transactions, avoiding rounding errors.
 

By accurately entering historical data, the future liability amounts will align more closely with the figures on your state forms and file forms, reducing potential discrepancies. 

If you have any questions, please let us know. We're here to assist you.

Can you please elaborate on this part?

What is the best way to handle the discrepancy?

Enter or correct all historical payroll liabilities and payments on the accurate dates. When entering historical payments or liabilities, always select "Do Not Affect Payroll Liabilities." This action prevents QuickBooks from recalculating payroll tax liabilities on those transactions, avoiding rounding errors.

By accurately entering historical data, the future liability amounts will align more closely with the figures on your state forms and file forms, reducing potential discrepancies. 

To pay the liability for that quarter I click on the liability tax, uncheck print now since I paid online, save and print summary.  Thats when the tax difference populates.  I corrected it this time by "Entering A Prior Payment" and Create Payment.  On "Accounts Affected" I chose "Affect liability accounts but not bank account".  

So is this not right avenue to take?

How do I correct the "Accounts Affected" I entered?

Wasn't sure if you saw my reply asking for help with the last instructions you gave me?

You're always welcome, Troe.

We’re glad to hear that the advice shared by my colleagues has helped you manage the SUTA tax liability discrepancies you’ve experienced in QuickBooks Desktop. Our goal is to support you in navigating these payroll and tax processes as smoothly as possible.

If you have any further questions or need assistance with QuickBooks Desktop or related concerns, please don’t hesitate to reply to this thread. We’re here to help. Have a great day!