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ReneeE
Level 1

MA Unemployment Rate

Hi,

I have an employee that I set up in MA. I was told when I called MA that the tax rate was 1.45% which I paid in first quarter. I got a letter saying that there was a shortage and called to find out that the rate is 1.87%. I have paid April in 2nd quarter with the rate of 1.45%. I went to change the rate to 1.87% for all 4 quarters and got the message which I have attached. I am not able to attach the message I get if I leave the first quarter at 1.45% and try to change second quarter to the 1.87%. This is the message I get if I leave 1st qtr at 1.45% and change 2nd qtr to 1.87%, "You are changing the tax rate for the current quarter. If you have already paid employees this quarter, QB's will attempt to catch up when you create paychecks. Remember this tax is calculated by multiplying YTD taxable wages times the tax rate(s).  Changing the rate after the quarter has started will not immediately impact the taxes for the current quarter. QB's will attempt to "catch up" using your new rate(s) on new paychecks. If you are increasing the rate, the amount on new paychecks will be greater than normal on the next check and then will return to normal."


I would appreciate any assistance you can provide as to what I need to do. 

 
 

 

2 Comments 2
Jelayca V
QuickBooks Team

MA Unemployment Rate

I appreciate the details and screenshot you have provided, Renee. I’m here to provide some clarity on this matter.

 

The message you’re seeing in QuickBooks Desktop (QBDT) is informing you about how the software handles changes in tax rates during a quarter. Please know that this is just a normal behavior of QBDT. 

 

This is because when you adjust the tax rate in the middle of a quarter, QuickBooks will attempt to catch up on the new tax rate with the remaining paychecks for the quarter.

 

This means that the tax amount on the next paycheck might be higher than usual to make up for the previous paychecks that were taxed at a lower rate due to a shortage. 

 

Once the shortage is fully catch up, the tax amount on subsequent paychecks will return to its normal rate.

 

For further details, please see this article: Adjust payroll liabilities in QuickBooks Desktop Payroll

 

Furthermore, I'll be adding this article to help you learn how to file your state payroll tax forms and pay your state taxes electronically in QBDT:   E-file and e-pay state forms and taxes in QuickBooks Desktop Payroll Enhanced

 

If you need further assistance with payroll taxes, you can tap the reply button to post them here. Have a good one!

ReneeE
Level 1

MA Unemployment Rate

I appreciate the article but it doesn't answer my question. I need to know if I need to go back and change the tax rate for all four quarters to the 1.87% or leave 1st qtr as 1.45% and change 2nd, 3rd and 4th quarter to the 1.87% since I only paid 1 month of 2nd qtr at the 1.87% rate. I have to do payroll for May on June 3rd so I need to have this corrected by then. I appreciate any assistance you can provide. 

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