How do I finish setting up payroll taxes, when a SUI number is required, but we are a church and SUI exempt?

Hi there, thechurchofgrady.

I'm here to share some information and guide you in setting up state unemployment insurance (SUI) exemptions in QuickBooks Online Payroll.

Churches may be subject to, exempt from, or eligible for reimbursement from state unemployment insurance. You can contact the state unemployment agency if you're unsure of the status of your church.

• Subject means you’re required to pay SUI tax and file the SUI tax forms each quarter.
• Reimbursable means you only pay SUI if one of your employees files an unemployment claim. You’ll get an SUI account number and your SUI rate is 0.00%. You won’t have to pay any SUI tax, but you do need to file SUI tax forms each quarter with your employees’ wages.
• Exempt means you don’t pay SUI tax or file any SUI tax forms. You won’t get an SUI account number or rate.

If your church is exempt for SUI tax or file any SUI tax forms, I'll show you how to set it up in QuickBooks Online Payroll.

Here's how:

1. Go to Payroll, then Employees.
2. Select your first employee from your employee list, and then select Edit Employee.
3. From What are [Employee’s] Withholdings?, click on Edit ✎.
4. From the Tax Exemptions section, tap the State SUI box.
5. Hit Save, and then select Done.
6. Repeat steps 2–6 for each employee.

I'm adding this article for more information or if you need to set up SUI reimbursable: Set up federal and state unemployment insurance for churches and nonprofits.

Let me know if you have other concerns about payroll taxes by leaving a comment below. I'll be checking your response. Have great day!

I want to set it up for Quickbooks to file and pay taxes automatically. However, when I am setting up my tax preferences it is still prompting me for an account number for SUI. We are an SUI exempt church

I see you want to set up payroll taxes and pay taxes automatically. During the process, you are prompted for your account number for SUI, even if you are an SUI-exempt church. Worry not. I've got steps you can follow to set up an SUI exemption.

The first step would be to exempt your business from SUI. Follow these steps:

1. Go to Settings ⚙, and then choose Payroll Settings. 
2. From your [State] tax, click Edit ✎.
3. Leave the SUI account number blank.
4. Enter your SUI rate: 0.00%
5. If applicable, select any tagalong or surcharge rates: 0.00%
6. Select OK, and then pick Done.

Next, exempt your employees from SUI. I suggest reviewing your employees' profiles and business setup. Here are the steps:

1. Go to Payroll, then click Employees.
2. Select your first employee from your employee list, and then choose Edit Employee.
3. From What are [Employee’s] Withholdings?, click Edit ✎.
4. From the Tax Exemptions section, select SUI and any applicable SUI tagalong or surcharge taxes.
5. Select Save, and then pick Done.
6. Repeat steps 2–6 for each employee.

For detailed information, refer to this article: Set up federal and state unemployment insurance for churches and nonprofits.

I'm adding these articles you can use in the future:

• Understand workers’ compensation insurance.
• Set up employees and payroll taxes in a new state.

With that information, you can fully exempt your church from SUI, and will let you successfully set-up and pay taxes automatically. If you have more questions about set-ups for federal and state taxes, post them here in the forum. I'll be around to help you with them. Stay safe!

I have followed these steps time and time again. 

It is still prompting me to enter the number and will not allow me to finish my tax set-up.

I am a church and we are exempt. We have called the state of Kansas and there isn't anything they can do for us.

Ironically enough, the state office was familiar with this issue and it's definitely quickbooks.

Why can't we get a valid answer?

Hi there, @Amy in Kansas. Allow me to help you to put you on the right path to make sure this gets resolved.

I'd suggest contacting our payroll team. They have the necessary tools to assist you further in a safe and secure environment.

Here's how:

1. Go to the Help menu and select the Search tab.
2. Then, click Contact Us.
3. Then, enter a brief description of your concern and select Continue.
4. Lastly, choose either Start a Chat or Get a Callback to start connecting with them.

Additionally, I'd like to leave this article to learn about reimbursements and how to pay your employee back for out-of-pocket expenses in QuickBooks Payroll: Reimburse your employee in QuickBooks Payroll.

I'll be around if you have other questions or concerns about payroll. I'm always around to help! 

I've already talked to Payroll, they can't help me. My payroll is running fine. 

All my employees are set-up as exempt.

When trying to "Finishing Setting Up Your Taxes" 

It asks for this:

I am having the exact same issue.  The instructions are not correct.  It's a never-ending circle.  It's telling me: "Your rate should be between 0.2816 and 5.4%"

I understand the importance of setting up SUI exemptions, dson. Let me route you to the appropriate support to handle these queries. 

To address this, I recommend contacting our support team. They have sufficient resources to provide accurate assistance while guaranteeing the security of your information.

Here's how: 

1. Go to the Help icon. 
2. Choose the Search tab, and select Contact Us.  
3. Enter a brief description of the issue you encountered. 
4. Click Continue. 
5. Choose a way to connect with us:

• Start a chat with a support expert.
• Get a callback from the next available expert.

For more information, check out this article: QuickBooks Online Support.  

I have added these guides on how you can enter and manage employee's insurance: 

• Enter paycheck totals for your W-2 employees
• Update your State Unemployment Insurance (SUI) rate

Feel free to post here or reply below if you have concerns regarding SUI exemptions. Stay safe!  

I am also having this problem in Maryland.  Quickbooks set our Unemployment Insurance number as "Applied For" and that took care of some of the problem.  However, they apparently can't file our New Hire Reporting because they can't put Exempt there.  No one seems to be able to fix the issue.

Hello, @ecbi.

I recognize the urgency to get your new hire report filed in QuickBooks Online Payroll.

About this matter, it's best to reach out to our Customer Support Team. They have the necessary tools to further assist you with this and guide you with the appropriate process for changing the Unemployment Insurance (UI) number from Applied for to Exempt.

Here's how you can contact them:

1. Go to Help (?), then click Contact Us.
2. Please enter your question and select Let's talk.
3. Review and Select from the following: Have us call you or Chat with us.

You can check out this article if you want a detailed process setting up an SUI exempt section: Set up federal and state unemployment insurance for churches and nonprofits.

Also, I've included an article I find helpful when updating your SUI: Update your State Unemployment Insurance (SUI) rate.

Loop me in if you have other payroll-related concerns. I'd be glad to assist you. Take care always.