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Lochkelly
Level 3

Nonprofit exempt from unemployment taxes

I have it on good authority (CPA) that our church is exempt from federal and state unemployment taxes.  However, Enhanced Payroll (desktop QB Premier Nonprofit) still calculates these.  This is requiring that our church secretary continue to calculate and pay our payroll taxes manually.  If the unemployment tax figures are subtracted from QB, the totals match our secretary's calculations.

 

How can I fix this???

 

Thanks,

Lisa

1 Comment 1
Jovychris_A
Moderator

Nonprofit exempt from unemployment taxes

Thanks for posting to the Community, @Lochkelly.

 

I've got the steps on how to exempt your secretary from from federal and state unemployment taxes.

 

Here's how:

  1. Go to Employees, then select Employee Center.
  2. Double-click the name of the employee.
  3. Go to the Payroll Info tab.
  4. Select Taxes....
  5. Go to the Federal tab. From the Filing Status ▼drop-down, choose Don't Withhold.
  6. Go to the State tab. From the Filing Status ▼drop-down, choose the appropriate option. (The option will vary by state. You may see Don't Withhold, Exempt, or a different choice. If there's no Filing Status drop-down, your state is not subject to state withholding.)
  7. Select OK twice to save your selections.
  8. Repeat these steps for each exempt employee.

 

Well done! You've now exempt it from both unemployment taxes.

 

I've added an article as your reference on how to exempt people from taxes in an organization: Set up tax-exempt employees. It covers information about employee payroll taxes like special status and employer with special tax-exempt status.

 

In case you want to add additional details such as employment information and employment details, just double-click the person's name and select the Employment Info.

 

Feel free to leave a comment below if you need further assistance. I'll keep my notifications open. Take care!

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