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?
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
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:
Go to the gear icon and select PayrollSettings.
Click the Preferences tab.
Select Accounting Preferences.
Review the employer tax liability and expenses accounts.
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: