Federal Unemployment is a company paid tax, BarbBieber.
It means that no amounts were deducted from the employees pay. It's also possible that the Payroll Liabilities section for FUTA is not set to the correct payroll liabilities account. Aside from that, the payroll item might have also been made inactive.
These can be the reason why you can't see it when trying to create a liability adjustment. I'll help you review your Payroll Item List and make sure to review the item's setup.
Here's how:
- Go to the List menu and select Payroll Item List.
- Check for the box for Include Inactive at the bottom part of the page.
- Look for the Federal Unemployment Tax and remove the X mark before it. If it's already active, double click on it to edit the item.
- Click Next, then make sure that the account selected in the drop-down list for Liability account is Payroll Liability.
- Select Next until the Finish button is clickable.
Once done, go back to the liability adjustment window and check if you can already see FUTA on the list.
Additional references when preparing your tax forms are also provided here:
Please reach out out to us again or add more replies to this thread if you need anything else. We're always here to help with any QuickBooks-related concerns.
