How to correct SUI payments already made with retroactive rates QuickBooks Desktop

I can share some details on how to correct SUI calculation and payments in QuickBooks, @QBFrustrated.

To change an employee's SUI quarter or year-to-date wage base and tax amount, you must create a manual liability adjustment. You can apply the correction on the next paycheck (within the same year), provided the paycheck is for wages. 

Here's how:

1. Create a Payroll detail review report.
2. Customize your report to display the affected date, employees, and tax items.
3. Check if tax amounts are calculating accurately based on wage limit and tax rate.
4. From the report, determine if you want to decrease or increase the wage base, tax amount, and income subject to tax, and by what amount.

Then, proceed to the Payroll Taxes page to create the adjustment: 

1. Go to the Employees, Payroll Taxes, and Liabilities and then select Adjust Payroll Liabilities. 
2. Choose the correct Effective Date and click Employee Adjustment.
3. Select the employee from the drop-down list.
4. In the Taxes and Liabilities section, choose the Item Name column and click the payroll or tax item you want to adjust from the drop-down list.
5. Fill in the amount of the adjustment in the corresponding column (negative to decrease, positive to increase).
6. You can use the Memo column to note the reason for the adjustment and then choose Accounts Affected.
7. Select Do not affect accounts or Affect liability and expense accounts.
8. Click OK to save your changes.
9. Refresh the Payroll Detail Review report to verify the accuracy of the adjustments you entered.

Once done, the data on your report should show the liability adjustments you entered and should have corrected the employee's quarter or year to data payroll data.

For further details, please see this article: Entering wage base and tax adjustment to correct employee's quarter (qtd) or year to date (ytd) tota....

In case you enter an inaccurate State Unemployment (SUI) or withholding (SIT), here's an article you can use to fix it: Troubleshoot incorrect state unemployment (SUI) or withholding (SIT) on paychecks

Keep me posted if you have further concerns with your state unemployment tax calculations. I'll be here to assist you. Keep safe always.

Hi, @QBFrustrated.

Hope you’re doing great. I wanted to see how everything is going about correcting the SUI payments concern you had the other day. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.

Looking forward to your reply. Have a pleasant day ahead!

The payment was made for Unemployment taxes for Q1 then they readjust the rate so we overpaid.  How do i fix the unemployment taxes in QuickBooks so year end reports match what DUA is stating.

Thank you for joining the thread, @MAconfused.

Allow me to share some details on how to correct your SUI calculations in QuickBooks Desktop (QBDT) Payroll. 

You can create a liability adjustment to fix your unemployment taxes in QuickBooks. Before that, make sure to update your SUI tax rate first. This way, we can ensure that your year-end reports match what the DUA is stating.

Here's how:

1. Go to the Lists menu and select Payroll Item List.
2. Double-click [state abbreviation] - Unemployment Company.
3. Click Next until you reach the page “Company tax rates”.
4. Enter the correct rates for each quarter.
5. Select Next, then Finish.

Once done, follow the steps that were shared by my colleague Rubielyn_J to create the adjustment. You can also check out this article for the complete guide: How to use a wage base adjustment to correct an employee's year-to-date (ytd) information.

To ensure that your employee records, payroll item set up, wage, and tax amounts are correct, simply run the Payroll Checkup diagnostic tool. This will verify your current setup by scanning your payroll data for missing information and discrepancies.

You're more than welcome to visit this thread again if you have other questions. Just add the details of your concern here and I'll help you out.

Can the adjustment be made for the quarter total or does it need to be done by each payroll for the Effective Date?

Hi, platterell1.

Welcome to the Community. Allow me to chime in and share some information about creating adjustments in QuickBooks Desktop.

You can make create the adjustment at your own convenient time it's either quarterly or monthly. You can also check out this article for the complete guide: How to use a wage base adjustment to correct an employee's year-to-date (ytd) information.

In case you want to track where your company stands in terms of employee expenses, we can customize payroll and employee reports to view useful information.

I'll be right here to continue helping if you have any other concerns or follow-up questions. I'm more than happy to help. Take care!