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twrpwr
Level 1

Do any churches use QBO and if so, how did you get it to ignore unemployment taxes altogether?

We are not required to pay UT at all, ever.  However, QBO still asks for an unemployment number and tells me to finish setting up payroll.  I'm 9 months into this switch from Desktop and after numerous phone calls and chats (about 7 different QBO people) I still have the same problem.  
7 Comments 7
ShangY
QuickBooks Team

Do any churches use QBO and if so, how did you get it to ignore unemployment taxes altogether?

Thank you for bringing this to our attention, @twrpwr

 

Let me provide some steps to help you set up your employees under tax exempt category. 

Let’s start by setting up your business under the state unemployment insurance exemption. Here’s how: 

 

  1. Go to Settings. 
  2. Select Payroll Settings. 
  3. From your (State) tax, select Edit. 
  4. Leave the SUI account number blank. 
  5. Enter your SUI rate: 0.00% 
  6. Select OK, and then select Done

Next, let’s exempt your employees from the state unemployment insurance. Here’s how to do it: 

 

  1. Go to Payroll, then select Employees
  2. Choose your first employee from your employee list, and then select Edit Employee
  3. From What are (Employee’s) Withholdings? select Edit
  4. From the Tax Exemptions section, select SUI and any applicable SUI tagalong taxes. 
  5. Select Save, and then Done

In addition, I’ve included this article for you to check. This will guide you on how to run, print, and customize payroll reports in QBO: Run payroll reports. 

 

If you need further assistance with setting up your payroll under tax exemption or any other QuickBooks features and processes, please let me know. I’m always here to help, @twrpwr. Take care always. 

twrpwr
Level 1

Do any churches use QBO and if so, how did you get it to ignore unemployment taxes altogether?

This has already been done.  Actually, several times by several different QBO team members even multiple ways.  QBO will not accept no UT number (it's currently set as "appliedfor" even though its not and won't be).  When I removing the "appliedfor" under the account number and putting nothing, QBO will not let me out of the screen.  It says my tax rate must be 1.5 to 8.0%.  I had an employee that was having WV tax withheld (even though we are located in VA because we are right on the VA/WV border).  QBO payroll still wants to file WV UT but we do not have to file.  Never did.  The employee is no longer employed but QBO still wants to file WV UT tax.  It's frustrating to have multiple notices pop up as if you owe something or forgot to file something, to realized that you didn't.  No one seems to know how to get the messages to go away. 

twrpwr
Level 1

Do any churches use QBO and if so, how did you get it to ignore unemployment taxes altogether?

Thanks for the suggestions, but that doesn't work. That has been done multiple times by several differnet people at the QBO advanced payroll team and it's still not working. I still get error messages about UT.  I actually did what you said just for grins because the tax account number was set up as "applied for" and now it will now let me select DONE because it will not allow the tax rate to be zero.  I'm going to have to get the QBO team go in and manually fix that again.  I never had this problem with Desktop.

brownmgjmu
Level 1

Do any churches use QBO and if so, how did you get it to ignore unemployment taxes altogether?

I appreciate your question, as I am in the same situation. I keep getting these annoying error messages, which have gotten exponentially worse since I went to online Quickbooks. I can't even find "Settings" to follow the instructions.

ZackE
Moderator

Do any churches use QBO and if so, how did you get it to ignore unemployment taxes altogether?

Thanks for joining the Community and getting involved with this thread, brownmgjmu.

 

You can access your Settings screen by clicking the Gear icon.

 

I've included an image showing where to find it and Payroll settings:
 

 

After accessing your Payroll settings screen, you'll be able to continue with the steps shared by ShangY.

 

I've also included a detailed resource about using QuickBooks which may come in handy moving forward: Getting Started in QuickBooks Online

 

Please feel welcome to send a reply if there's any questions. Have a great Tuesday!

schumdl
Level 1

Do any churches use QBO and if so, how did you get it to ignore unemployment taxes altogether?

I have the same problem.  I have followed the steps indicated but the QBO does not allow a state unemployment insurance tax rate of 0.00%.  It insists you enter a number between 0.85% and 8.65% for Unemployment Insurance (UI) rate for IL.  Following is what I have tried numerous times:

 

  • Go to Settings. 
  • Select Payroll Settings. 
  • From your (State) tax, select Edit. 
  • Leave the SUI account number blank. 
  • Enter your SUI rate: 0.00% 
  • Select OK, and then select Done

How do you specify in QBO that you are exempt from paying UI?

Thanks!

 

Jelayca V
QuickBooks Team

Do any churches use QBO and if so, how did you get it to ignore unemployment taxes altogether?

I can see the significance of ensuring that churches and nonprofit organizations are exempt from taxes, @schumdl. Let me connect you with the support you need to help you apply a zero tax rate in QuickBooks Online Payroll (QBOP).

 

Since you're unable to 0.00% Unemployment Insurance (UI) tax rate for Illinois (IL) in QBO. I recommend contacting our QuickBooks Online Payroll Support team to help you zero out the rate of your UI without any hassle. Our experts are equipped with the technology, including screen sharing, which enables them to see what's causing the problem.

 

Additionally, if desired, our team can perform the zero out of the rate in your QuickBooks Online Payroll account on your behalf. To contact them, here's how:

 

  1. Go to Help (?).
  2. Select Contact Us.
  3. Enter your concern, then select Let's talk.
  4. Choose between Start a chart or Get a callback.

 

I'll be including this article also to be guided on how to run, print, and customize payroll reports in QBO: Run payroll reports. 

 

If you have further questions about payroll tax exemption or any other QuickBooks features and processes, please let me know. I’m always here to help. Take care always. 

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