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Anonymous
Not applicable
posted
‎12-28-2018 08:23 AM
last updated ‎December 28, 2018 8:23 AM

Employee Taxes Incorrect Selection - Federal Unemployment Tax (Company Paid)

Good afternoon. While assisting another QB user, I noticed that two new employees were incorrectly configured in the federal taxes - Federal Unemployment Tax (Company Paid). The check box WAS selected, when it should have not been selected.

 

A payroll as been run with the incorrect configuration and now has small balance of payroll taxes (liabilities) for Federal Unemployment Tax showing as outstanding.

 

I have since unchecked the Federal Unemployment Tax (Company Paid) selection for the employees, but how do I adjust the FUTA tax liability to zero it out as the organization does not pay FUTA. Any assistance is greatly appreciated.

 

Thanks - Tim

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Best answer 12-28-2018
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BettyJaneB
QuickBooks Team
‎12-28-2018 09:08 AM

Re: Employee Taxes Incorrect Selection - Federal Unemployment Tax (Company Paid)

Hi there, @Anonymous.

 

Welcome to the Community. Having your FUTA tax liability to be corrected is my priority so let's get this taken care of.

 

You can create a negative liability adjustment to offset the Federal Unemployment tax liability.

 

Here's how:

  1. Click on Employees at the top.
  2. Select on Payroll Taxes and Liabilities. 
  3. Click on Adjust Payroll Liabilities.
  4. Select the correct Effective Date.
  5. In the Taxes and Liabilities section, click the Payroll Item column and select the correct payroll item.
  6. Enter the negative amount of the adjustment.
  7. Click Accounts Affected and choose Do not affect accounts.
  8. If you have additional employees, click Next Adjustment and repeat the steps for each affected employee. 

To know more about the process, please check out this article: Adjust payroll liabilities.

 

This information should help you get back on track. Feel free to reach back out to me if I can be of additional assistance. I'll make sure to get back to you as soon as I can. Enjoy your weekend!

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BettyJaneB
QuickBooks Team
‎12-28-2018 09:08 AM

Re: Employee Taxes Incorrect Selection - Federal Unemployment Tax (Company Paid)

Hi there, @Anonymous.

 

Welcome to the Community. Having your FUTA tax liability to be corrected is my priority so let's get this taken care of.

 

You can create a negative liability adjustment to offset the Federal Unemployment tax liability.

 

Here's how:

  1. Click on Employees at the top.
  2. Select on Payroll Taxes and Liabilities. 
  3. Click on Adjust Payroll Liabilities.
  4. Select the correct Effective Date.
  5. In the Taxes and Liabilities section, click the Payroll Item column and select the correct payroll item.
  6. Enter the negative amount of the adjustment.
  7. Click Accounts Affected and choose Do not affect accounts.
  8. If you have additional employees, click Next Adjustment and repeat the steps for each affected employee. 

To know more about the process, please check out this article: Adjust payroll liabilities.

 

This information should help you get back on track. Feel free to reach back out to me if I can be of additional assistance. I'll make sure to get back to you as soon as I can. Enjoy your weekend!

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