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Level 1

PA Unemployment Company & Employee

Good Morning,

 

When I set up a new employee in QuickBooks in September 2018, I must have done something wrong.  When I ran the State Tax Detail report, there were payroll items for PA Unemployment Company and PA Unemployment Employee listed under income subject to tax, which is incorrect.  How do I or where do I go in QuickBooks to remove those 2 line items from the employee?

 

Thank you

4 Comments
Highlighted
Moderator

PA Unemployment Company & Employee

We can go to the employee's profile and remove these items there, Bbergrenr2.

If the employee is not subject to the PA Unemployment tax, you can uncheck the SUI in the employee's profile. You can also correct the State Worked in case it is set up incorrectly.

Like this:

  1. Click Employees at the top, and then select Employee Center.
  2. Double-click the name of the employee.
  3. Go to the Payroll Info tab.
  4. Click the Taxes tab in the upper right-hand corner, and then click the State tab.
  5. In the STATE WORKED section, uncheck the tick-box for SUI.
  6. Click OK twice.

However, if the state worked in the employee's profile is correct but the PA Unemployment is still showing on your reports, we can check the Other tab. This shows the additional taxes for the state.

Here's how:

  1. Follow steps 1 to 3 above.
  2. Go to the Other tab.
  3. Scroll down and look for PA taxes and remove them.
  4. Click OK twice.

Once done, you'll have to make a negative liability adjustment to zero out the PA taxes on the State Tax Detail report. Here's an article for the detailed steps: Adjust payroll liabilities.

I'll be around if you have more questions. Thanks for dropping by.

Highlighted
Community Champion

PA Unemployment Company & Employee

PA Unemployment does consist of two parts, employer tax at combined rate individually imposed by the state plus an employee contribution whichnis 1/10 of 1%. Both must be calculated and paid and both will show in tax liability until paid. In addition FUTA is imposed.

 

There are exemptions for ag workers, employees of nonprofits, certain directors of corporations 

Highlighted
Level 1

PA Unemployment Company & Employee

How does the employer part show as a liability? Shouldnt it go to the payroll tax expense when paid?

Highlighted
QuickBooks Team

PA Unemployment Company & Employee

Hello there, beckyjbiter.

 

After you create payroll, the affected accounts are payroll expenses and liability accounts. Taxes that are still due stays on the payroll liability account and are moved to the expense accounts after it has been paid.

 

However, the account post differently depending on the payroll accounting setup. We can review your Payroll Settings to check which account you selected to track employer taxes. 

 

Let me show you how:

 

  1. Go to the gear icon and select Payroll Settings
  2. Click the Preferences tab. 
  3. Select Accounting Preferences
  4. Review the employer tax liability and expenses accounts. 
  5. If there's a need to change you can do so. Then, click OK.

You can check out these articles that will help you manage your payroll preferences: 

I'm just around the corner to help. Just mention me in your reply and I'll surely assist you with it. Take care and have a great day ahead!

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