MN Federal Loan Assessment

Good day, rma1998!

We are already aware of this new tax. Let me assist you in tracking it.

In QuickBooks Desktop Payroll, we'll need to create a liability adjustment so we can add the 4% to MN Unemployment Insurance. This process will also flow liability adjustment directly to your quarterly filing.

Please follow these steps:

1. Go to the Employees menu, hover over Payroll Taxes and Liabilities, then select Adjust Payroll Liabilities.
2. Enter all the details needed especially in the Taxes and Liabilities fields.
3. Select Accounts Affected and then OK.

I've added an article you can check: Adjust payroll liabilities in QuickBooks Desktop. This will explain more on how to create a payroll liability adjustment. 

Also, you may visit our Payroll Tax Compliance Links page. From there, you can find all the necessary info to stay compliant with the State and Federal regulations.

Need more help? Leave a comment below and we'll respond as soon as we can.

Thank you for your speedy response. I believe I understand  how to add a payroll liability.  However I was looking for more help on how to set it up as far as only taking the 4% of the total unemployment insurance amount due and not 4% of the taxable wages.

Thank you!

Thank you for your speedy response. I believe I understand  how to add a payroll liability.  However I was looking for more help on how to set it up as far as only taking the 4% of the total unemployment insurance amount due and not 4% of the taxable wages. Also how will is show up under payroll liabilities along with the other unemployment amount due?

Thank you!

Thanks for getting back to us here, @rma1998.

I know how important it is to add the loan assessment amount to the total unemployment insurance amount. Our engineers are actively working on the new tax item. This way, it'll show up under the Payroll Liabilities tab.

Once it is available for release, we will create a paycheck adjustment to calculate the previous quarters.

In the meantime, create an adjustment to add the loan assessment as a workaround. Refer to the link provided by my peer above for the steps.

I'm also attaching this link here in case you need help with our payroll tasks. Just look for responses that fit your concern.

• View all articles for QuickBooks Desktop Payroll.

Please know that you're always welcome to swing if you still have questions about payroll tax. I'm more than willing to assist you. Take care and have a wonderful day ahead.

Do I need to set up a separate Liability account for the Federal Loan Interest Assessment?

Can you tell me if this loan assessment has been fixed yet in payroll? As of this year, we now have a 1.8% Federal Loan Assessment on the Unemployment total along with a 14% Additional Assessment on the unemployment total? The Federal Loan Assessment started last year, It seems like it is taking forever to get this fixed.

Thank you!

Thanks for following up with the Community, rma1998.

When your payroll liabilities are invalid, you can use a liability adjustment to fix them. Initially, you'll need to run a payroll check-up and the payroll summary report to identify discrepancies. Once you've identified each discrepancy, you can create the necessary adjustment(s).

Here's how:

1. In your top menu bar, go to Employees, Payroll Taxes & Liabilities, then Adjust Payroll Liabilities.
2. Use the Date and Effective Date fields to choose your last paycheck date of the affected month or quarter. In your Adjustment is for section, pick Employee Adjustment or Company Adjustment. If you choose Employee Adjustment, be sure to specify the employee's name. Employee adjustments are used if the item you're adjusting is a company-paid item. Company adjustments are utilized to correct your balance from Payroll Center and Payroll Liability balances reports.
3. Under the Item Name column, click which item you want to adjust and enter its Amount. If your item is under-withheld, enter a positive amount to increase it. In the event it's over-withheld, a negative amount can be used for decreasing it.
4. For employee adjustments, if you need to make a wage base adjustment you can enter its amount under Income Subject to Tax column.
5. Under Memo, enter a note about your adjustment for reference.
6. Click Accounts Affected, then OK. Choose Do not affect accounts to leave balances unchanged for the liability and expense accounts. Your adjustment will only change the year-to-date amounts on reports. Pick Affect liability and expense accounts to enter an adjusting transaction in your accounts.
7. Repeat these steps for other employees if needed, then select OK.

After creating the adjustment, you can run your payroll summary and payroll liability balances reports to confirm the amounts to be paid are accurate.
 

I've also included a detailed resource about adjusting liabilities which may come in handy moving forward: Adjust payroll liabilities
 

Please don't hesitate to send a reply if there's any additional questions. Have an awesome day!