Incorrect Tax table percentages

Thank you for visiting the QuickBooks Community again, AEA2020. Let me discuss how payroll taxes work in QuickBooks Desktop. Then, I'll ensure you'll be able to correct the employee % of PA UC Tax at the right time so your employee's data stays accurate.

The SUI rate may change from time to time depending on several factors, including a state’s base rate. Additionally, the rate is dependent on the tax table and the employee percentage is based on the most recent information available for your state. With this, updating any information in the tax table in QBDT for the PA SUI rate is currently unavailable. That's the reason you're unable to edit the percentage.

Furthermore, please know that QuickBooks will automatically update the newly updated rate if there are anything changes in your state. Then, this will usually happen effectively on January 2023. For now, I suggest making sure that you download and get the newest tax table in QuickBooks Payroll. This is to provide you with up-to-date, accurate rates and calculations for federal and supported state taxes, payroll tax forms, and e-file and e-pay options. 

Lastly, you may refer to this article to see steps on how you can run a specific report that gives you the total payroll wages, taxes, deductions, and contributions: Create a payroll summary report in QuickBooks.

Let me know in the comment section if you have other payroll taxes questions or any QuickBooks concerns. I’ll get back to answer them for you, AEA2020. Have a good one.

That does not give you an option to change the percentage.  This is for the PA-Unemployment Employee line in payroll item list.  It is automatically set at 0.06% but starting January 1st, 2023 the rate increases to 0.07% but QuickBooks Desktop does not allow the changing of the employee rate.  Company rate can be changed.  When following directions that was suggested, the only option is to change the state.  Not any tax rates.  

Thanks for getting back to us, @linkandassociates. Allow me to chime in and provide additional information about updating the tax table rates for Pennsylvania in QuickBooks Desktop (QBDT) Payroll.

Yes, it's correct that the employee tax rate for Unemployment Compensation in Pennsylvania will rise from 0.06% to 0.07%, effective on January 2023. As of now, we're unable to edit the percentage in the tax table in QBDT. However, there's no need to worry because state taxes in QBDT will auto-adjust if there are tax rate changes in your state. We'll just have to update our tax table on the said date to reflect the correct rate percentage.

Feel free to read these articles related to state taxes in QBDT. They contain detailed insights about adding a new state to your payroll product and fixing incorrect state forms used on paychecks.

• Set up employees and payroll taxes in a new state.
• Edit payroll items used on paychecks.

Please know that I'm only a couple of clicks away if you have clarifications updating the tax table in QBDT. The Community is always open to answering your questions and concerns. Stay safe, and have a great day.

have you recieved any answer to your question that helps. Im in alaska and not only is the employee precentage wrong and wont allow me to change it the tax base figure is wrong and i can not change that amount anywhere within quickbooks.  Seems like the more they charge the poorer the experience is with the product. 

truly frustrated 

Edward in Alaska

I am in Pennsylvania also and I am having the same issue. I have the current tax table, but PA is not included in that update. I run payroll this week and I am not sure what to do because the employee unemployment rate still shows .06% instead of .07%.

Thank you for your response but we are now into first pays of 2023 and I have updated payroll and the employee withholding amount is still incorrect.  Any idea when the correction will be made.  

Thank you.

I'd be glad to share some details about this, inkandassociates.

We don't have a specific timeframe when the correct percentage will add to QuickBooks Desktop Payroll. Rest assured that the program will automatically do a catch-up for the PUC withholding on your next payroll once the rate is updated.

In the meantime, I'd suggest informing your employees that they'll notice a slight increase in their deductions on the next payroll.

Also, make sure to update your tax table to have up-to-date, accurate rates and calculations for federal and supported state taxes, payroll tax forms, and e-file and e-pay options. Here's how:

1. Go to Employees, then select Get Payroll Updates.
2. Select Download Entire Update.
3. Click Update. An informational window appears when the download is complete.

Additionally, I've added this article that'll help you wrap up this year’s payroll and prepare for the next with QuickBooks Desktop Payroll: Year-End Checklist.

Please keep us posted if you need additional help preparing and filing your tax forms with QuickBooks. We're always here to help you.

Quickbooks - we've all done the updates, and the employee contribution is still wrong. Which means it will calculate the payroll liabilities incorrectly for the employee's paycheck. PLEASE ADVISE!

Hi hillarymacdonald,

I see this was not explained in the previous reply. We are currently working on an update, and you will be prompted when it is ready to be downloaded.

In the meantime, you can continue to process payroll as usual. QuickBooks will automatically do a catch-up for the PA UC employee portion on your next payroll once the rate is updated. Please also tell your employees that they'll notice a slight increase in their deductions on the next payroll.

If you would like to stay informed about payroll updates, you can check out this article: Get the latest payroll news and updates in QuickBooks Desktop Payroll.

Thank you for your patience. Let me know if you have any other payroll-related concerns.