Correct State Unemployment Caclulation

Hello there, @overtaxed72.

I'm here to help correct the amount calculated for state unemployment insurance.

Once you update a tax rate (SUI) in QuickBooks, the changes won't reflect on the prior paychecks created. To correct those, you'll need to adjust the payroll liabilities on each of your employee's paychecks. This way, it'll fix the year-to-date (YTD) or quarter-to-date (QTD) payroll info of your employee. Here's how:

1. Go to the Employees menu, then select Payroll Taxes and Liabilities and select Adjust Payroll Liabilities.
2. Select Employee Adjustment.
3. Choose the employee from the list.
4. Complete the Taxes and Liabilities fields.
5. Select Accounts Affected, then click OK.
6. Once finished, repeat the steps for the rest of your employees.

I'm adding this article for the detailed steps and information: Adjust payroll liabilities in QuickBooks Desktop.

After adjusting the payroll liabilities, you'll want to make sure they are updated. You can run the Payroll Summary report to review if everything looks good.

Keep in touch if you need any more assistance processing payroll, or there's something else I can do for you. I've got your back. Have a good day.

Thank you, all fixed

Mark,

My name is Jesse.  We recently received the new State Unemployment Rate for Texas on June 24, 2021.  Our previous rate for 2020 was 6.31%.  They adjusted it to 1.81% effective Jan 01, 2021.  I have already paid the 1st quarter taxes back in April.  Now I am ready to run the 2nd qtr report.  When I adjust the rate in Quickbooks to the 1.81% will it adjust the liability and show a negative or will it calculate correctly for the 1st & 2nd Qtr?

I am currently using Enterprise Desktop 2021.

Thanks for connecting with us here in the Community, jesse13. 

As mentioned by my colleague @ Mark_R. Once you update a tax rate (SUI) in QuickBooks, the changes won't reflect on the prior paychecks created. To correct those, you'll need to adjust the payroll liabilities on each of your employee's paychecks.

To correct an employee's SUI quarter or year-to-date wage base and tax amount, you must make a manual liability adjustment. This article explains how to use a wage base adjustment to correct an employee's year-to-date (YTD) information: Entering wage base and tax adjustment to correct employee's quarter (qtd) or year to date (YTD) tota....

Keep me posted if you need anything else when processing payroll. I'll be right here to help you. 

What if your employee calculation was wrong, i.e., took $2.00 for the tax but $4.00 was the correct calculation.  This will change the employees bottom line as to what they should have received for their paycheck.  Is there away that this will recalculate in the next quarter to deduct that from current pay?  Hope I am making sense.

Thanks!

@llpadie  That depends on if you're speaking about medicare and social security taxes, or income tax withholding.

If the former, QuickBooks should automatically try to correct the medicare and social security taxes itself.

If the latter, QuickBooks will do nothing. Though, you can always make the adjustment yourself on later paychecks if it bothers you.

Realistically, there are enough paychecks in the year that QuickBooks is not likely to withhold the 'correct' amount for the entire year anyway.