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I need to update the California unemployment tax rate in QBO

 
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QuickBooks Team

Re: I need to update the California unemployment tax rate in QBO

Welcome, @theresa3 and thank you for coming to the QuickBooks Community for assistance. I have some insight on updating California Unemployment rates to pass along.

 

To change or enter new rate:

Only Delete your current rate if you made a mistake when you entered it, and you haven't yet created paychecks using the incorrect rate. In all other cases, you should update your SUI rate instead. In particular, never delete your (correct) SUI rate for an earlier period, since it's needed to ensure proper record keeping. 

Your state will send you a notice with your State Unemployment Insurance (SUI) tax rate. If the rate has changed, follow these steps to update it in your payroll account.

Intuit Online Payroll

  1. Choose Setup > Tax Setup > State Tax Information.
  2. Find the tax rate you need to change.
  3. Select Change or add new rate.
  4. Referring to the notice you got from your state, enter your new rate as a percentage. For example, enter 3.4% (not .034).Important: Delete a rate only if you made a mistake when you entered it and if you haven't made any payments yet at the incorrect rate. If the rate is incorrect, but you've made payments at the incorrect rate, don't delete it.When the tax agency notifies you that you have a new rate, or if you discover that a rate you've been using is incorrect, enter the new rate and effective date, but do not delete the previous rate. It's part of your historical records.
  5. Enter the Effective Date provided in the notice from your state.
  6. Select OK.

QuickBooks Online Payroll

  1. Select the Gear icon at the top.
  2. Under Your Company, select Payroll Settings.
  3. Select State Tax.
  4. Scroll down to the State Unemployment Insurance (SUI) Setup section.
  5. Select Change or Add new rate.
  6. Refer to your notice from your state and enter your new rate. If the rate is provided as a decimal, you must enter it as a percentage. For example, enter 3.4% (not .034).
  7. Enter the Effective Date provided in the notice from your state.
  8. Select OK.
  9. If changing or deleting a rate has caused a tax overpayment (indicated by a negative amount of tax owed), please contact your state's unemployment division to confirm that the tax was indeed overpaid, and whether they would like you to apply the credit to future debt, or take a refund. Once you have spoken with your state, please contact our customer support for assistance reconciling the credit.

For more information on updating your SUI rate, click here.

 

Please keep me posted on your results with this here, the Community has you covered. Thanks again, I'll be standing by for your response.