I am trying to enter 4% for MN Federal Loan Interest Assessment. My only options in the drop down box are "Select a rate" or "0.00%". How do I enter 4%?

Thanks for visiting the Community, @jimh3.

Currently, the option to enter 4% for MN Federal Loan Interest Assessment is not yet available in QuickBooks Online (QBO). We are aware that this tax has been reintroduced and are working towards implementing it for 2021 Q1.

In the meantime, I recommend visiting our Blog site. This is where we share recent happenings and future developments, such as updates to newly added features. Here's the link: https://quickbooks.intuit.com/blog/.

For more insights about viewing and editing your current payroll preferences in QBO, check out these articles:

• Payroll accounting preferences.
• Set up Payroll account preferences.

Reach out to me in the comment section below if you have any other concerns. I want to make sure everything is taken care of for you. I'll be here to help. Have a great day!

I'm not sure if you found the answer for this - I am also looking for the proper method to add - I use Desktop

Hi there, tngplumbing.

The option to enter 4% for MN Federal Loan Interest Assessment is currently unavailable in QuickBooks Desktop. Our engineers are already working on this one to implement this newly reactivated tax item in QuickBooks Desktop.

In the meantime, you can create a company liability adjustment to add 4% to MN UI to increase the tax liabilities so you can track and pay this. Once the liability adjustment we're completed, it will flow into the quarterly filing.

Here's an article that will walk you through the steps on how you can adjust payroll liabilities in QuickBooks Desktop.

I'm leaving you an article about the preferences available and how to set them in QuickBooks Desktop Payroll. 

Please don't hesitate to touch base with me here if you need any additional assistance. I look forward to hearing from you again.

I received this from QuickBooks this morning;

Dear Minnesota Employer,

Effective January 1, 2021, Minnesota reintroduced the Federal Loan Assessment Tax, which is calculated at 4% of your total Minnesota Unemployment Insurance tax. The 4% is not multiplied by taxable wages, but rather by the total Unemployment Insurance amount due. Additional details on this tax can be found on the.

There has been an unexpected delay in releasing this new tax item, which we are actively working on. Once the rate is released to payroll, we will create paycheck adjustments to calculate the first quarter 2021 Federal Loan Assessment Tax. This is an employer only tax and will not impact the net pay your employees received.

It is important that you keep your books open for the first quarter of 2021. If you close your books out for the first quarter, we will not be able to adjust the total Loan Assessment Tax. The current block on submitting the payment and form will be removed as soon as the tax is live and when all accounts have been adjusted.

We apologize for the delay and will email your business as soon as the rate is live and adjustments have been completed.

Sincerely,

The QuickBooks Payroll Team

Why is Quickbooks figuring out the 4% tax on wages? In the letter it clearly states "the 4% is not multiplied by taxable wages, but rather by the total Unemployment Insurance amount due". Please advise

Hi there, @kbBark.

Let me share some details about the reintroduced Minnesota Federal Loan Assessment Tax (MN Tax).

Since this 4% tax of total Unemployment item was not used since 2015, Intuit is working diligently on the details to be in compliance with the State of Minnesota's reintroduced tax that will be implemented for Quarter 1 2021.  Additional details will be communicated to customers once our research is complete and a plan is in place for supporting across the payroll products.

I've included the workarounds or changes that will happen depending on your payroll product:

• For Assisted Payroll:
  • Tax pay and file will increase the UI rate in March to catch up,
  • You will see an increase in MN UI debit in their March payrolls to catch up for quarter to date tax
    ​​​​​​​
• For Do-It-Yourself payroll:
  • You can create a company liability adjustment to add 4% to MN UI to increase tax liabilities so they can pay and track this correctly. Once the liability adjustment is completed, it will flow into the quarterly filing. You can check out this article to know more about the steps: Adjust payroll liabilities in QuickBooks Desktop.

We appreciate your patience while we are working on the MN Tax to be implemented. Please don't hesitate to let us know if you need further assistance or other questions. We're here to help you through it. Take care.