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FMHA
Level 1

Exempt employee wages from State Uenemployment Tax

How do you remove the wage limit for exemption from our State Unemployment Tax. All of our wages are subject to the State Unemployment Tax and non are exempt. However, I am unable to change the limit so all employees wages are taxable for SUTA.

5 Comments 5
qbteachmt
Level 15

Exempt employee wages from State Uenemployment Tax

I have Governmental Entity client with this problem, and you have to make and use your own Tax item for this, or for the amount over the limit.

Anonymous
Not applicable

Exempt employee wages from State Uenemployment Tax

Hi there, FMHA,

 

Thanks for getting in touch with the Community. I can add a bit more about your State Unemployment Tax wage limit.

 

QBTeachMT's answer is a great workaround for you follow. In addition to her answer, you can also make a wage limit adjustment for those non-exempt employees. Here's how:

  1. Click the Employees tab.
  2. Choose Payroll Taxes and Liabilities.
  3. Select Adjust Payroll Liabilities.
  4. Enter the correct Effective Date (last day of the affected quarter).
  5. Click the Employee radio button.
  6. Choose the employee name.
  7. On the Item Name, enter the SUI item.
  8. In the Wage Base column, enter the adjustment amount to increase the limit.
  9. Select Do not affect accounts or Affect liability and expense accounts.
  10. Click OK.

That should do it, FMHA. Please get back to me if you have any more questions. I'm always around to help.

qbteachmt
Level 15

Exempt employee wages from State Uenemployment Tax

@Anonymous

 

Please Learn from the input here. You don't Change wage base or make adjustment entries.

 

Here is Intuit's directions on this, for my State, as an Example:

http://http-download.intuit.com/http.intuit/CMO/payroll/support/payroll_updates/StateLocalDocs/uitax.html#Montana

 

That is accessible from your Employees menu > Get Payroll Updates > Payroll Update Info, it is also provided following every payroll tax table update, and it is on the web for any specific tax table.

 

Here (I cannot seem to change the Font, sorry):

 

"A custom payroll item is to be used for governmental and reimbursable employers. The surcharge for Montana governmental and reimbursable employers is applied to the total wages paid in the tax quarter. QuickBooks Payroll is unable support this type of tax item. Follow the instructions below to setup a custom payroll item to track the total wages paid in the tax quarter. From the Payroll Item List, click the Payroll Item button and select New. Select Custom Setup then click Next. Select Other Tax then click Next. Ensure the dropdown selection is User Defined Tax and select Tax is paid by the company, then click Next. Enter a name for the item, i.e. AFT Surcharge, then click Next. Enter the name of the agency the tax payments are made to and the assigned account number. Select the liability account and expense account you want to track this item to (confer with your accountant if you are unsure). Click Next. Ensure the Tax tracking type is set to None and click Next. Enter the tax rate provided by the agency. Continue to click Next, then click Finish (You will be prompted to select Taxable Compensation and whether the tax is calculated before any other Taxes or deductions, leave these selections at their default settings unless directed to change them by your accountant or the Montana Unemployment Insurance Division.) "

Mayb
Level 1

Exempt employee wages from State Uenemployment Tax

How do you change the SUTA tax limit for WV for $12k to $9k?

Rasa-LilaM
QuickBooks Team

Exempt employee wages from State Uenemployment Tax

Thank you for following this thread, Mayb.


I recognize the importance of having an accurate wage limit for your SUTA (State Unemployment Tax) in the state of West Virginia (WV). This ensures you have the correct information for taxes and forms.


Our Payroll Compliance Team is working to include the latest SUTA wage limit for WV. You’ll have to download the latest tax table to get the most up-to-date information for payroll as well as the changes to your state. Also, the wage limit is added to the update.


I’m adding some links below for additional resources. These articles cover all the details on how to download the tax table. You’ll also see the latest changes on the tax forms, E-file and pay, as well as for the federal and state taxes.

 

 

In case you need more information about setting the new SUI rate, this link outlines the steps on how to perform the task in QuickBooks: Update your State Unemployment Insurance (SUI) rate in QuickBooks or Intuit Payroll.


Reach out to me again if you have additional questions about state unemployment taxes and their limits. I’ll be glad to answer them for you. Enjoy your weekend. 

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