How can I change the state unemployment tax rate to zero? We don’t want nor qualify for MN UI. But it will only allow setting it to 0.5%

Hi there, @dermtalkdocs.

I understand how important it is to use the correct Unemployment Insurance (UI) tax rate. It's our priority to ensure that you can update it.

The UI tax rate is determined by the state government and can vary from year to year. It's possible that there has been a change in the tax rate that has not yet been reflected in QuickBooks Online (QBO). I recommend double-checking it with your state's UI agency to verify the information. 

If you find it's correct but unable to update it QBO, you may have too much accumulated historical data causing this unusual behavior. Whenever you visit a website, it saves some information from the web page in its cache and cookies. These files allow the websites you visit most often to load faster. Not to worry, clearing them will do the trick.

First, let's try accessing your account through an incognito window to rule out the possibility of a webpage issue. You can refer to these shortcut keys to open an incognito window in all supported browsers:

• Chrome: Ctrl+Shift+N
• Firefox: Ctrl+Shift+P
• Safari: Command+Shift+N

Once signed in, go to your Payroll settings and change your SUI rate.

Here's how:

1. Go to the Gear icon, then select Payroll settings.
2. Next to the state you want to update, click the Edit icon.
3. In the Unemployment Insurance (UI) section, select Edit.
4. Click Continue if you see a prompt.
5. Enter your new rate and its effective date. 
6. If you have a surcharge or assessment tax rates, enter it here as well.
7. Enter your new rate and its effective date.
8. Click Save.

If it works, I recommend clearing your browser's cache so you can access QuickBooks with a clean slate. You can also use a different supported one.

You may also visit this article for instructions on adding or changing your rate: SUI.

Keep me posted if you need further assistance in updating your tax information. We're always here to lend a helping hand. Wishing you and your business continued success. Have a wonderful day, dermtalkdocs.

@dermtalkdocs 

The only wages exempt from paying MN Unemployment are wages paid for:

• Services performed by a sole proprietor or a member of a partnership
• Services performed for a sole proprietor by his or her parent, spouse, or child under the age of 18
• Services performed for a corporation by an officer who owns 25 percent or more of the corporation
• Services performed for a limited liability company by a member who owns 25 percent or more of the limited liability company directly or indirectly through another legal entity such as a subsidiary or holding company, and
• Services performed for a church, convention or association of churches, or any other religious organization that is supervised, controlled or principally supported by a church, if the employer is operated primarily for religious purposes.

Beyond that, MN law requires employers to pay MN UI on all other wages.