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Hi,
I am trying to figure out how to enter this so it is automatically calculated. Effective January 1, 2021, Minnesota reintroduced the Federal Loan Assessment Tax, which is calculated at 4% of your total Minnesota Unemployment Insurance tax. The 4% is not multiplied by taxable wages, but rather by the total Unemployment Insurance amount due. I have read lots of threads but never really see a clear answer. Just that Quickbooks is working on fixing it. How do I enter this into payroll so it will automatically be listed in payroll liabilities when I pay it? I do not have assisted payroll.
Thank you!
Good day, rma1998!
We are already aware of this new tax. Let me assist you in tracking it.
In QuickBooks Desktop Payroll, we'll need to create a liability adjustment so we can add the 4% to MN Unemployment Insurance. This process will also flow liability adjustment directly to your quarterly filing.
Please follow these steps:
I've added an article you can check: Adjust payroll liabilities in QuickBooks Desktop. This will explain more on how to create a payroll liability adjustment.
Also, you may visit our Payroll Tax Compliance Links page. From there, you can find all the necessary info to stay compliant with the State and Federal regulations.
Need more help? Leave a comment below and we'll respond as soon as we can.
Thank you for your speedy response. I believe I understand how to add a payroll liability. However I was looking for more help on how to set it up as far as only taking the 4% of the total unemployment insurance amount due and not 4% of the taxable wages.
Thank you!
Thank you for your speedy response. I believe I understand how to add a payroll liability. However I was looking for more help on how to set it up as far as only taking the 4% of the total unemployment insurance amount due and not 4% of the taxable wages. Also how will is show up under payroll liabilities along with the other unemployment amount due?
Thank you!
Thanks for getting back to us here, @rma1998.
I know how important it is to add the loan assessment amount to the total unemployment insurance amount. Our engineers are actively working on the new tax item. This way, it'll show up under the Payroll Liabilities tab.
Once it is available for release, we will create a paycheck adjustment to calculate the previous quarters.
In the meantime, create an adjustment to add the loan assessment as a workaround. Refer to the link provided by my peer above for the steps.
I'm also attaching this link here in case you need help with our payroll tasks. Just look for responses that fit your concern.
Please know that you're always welcome to swing if you still have questions about payroll tax. I'm more than willing to assist you. Take care and have a wonderful day ahead.
Do I need to set up a separate Liability account for the Federal Loan Interest Assessment?
Can you tell me if this loan assessment has been fixed yet in payroll? As of this year, we now have a 1.8% Federal Loan Assessment on the Unemployment total along with a 14% Additional Assessment on the unemployment total? The Federal Loan Assessment started last year, It seems like it is taking forever to get this fixed.
Thank you!
Thanks for following up with the Community, rma1998.
When your payroll liabilities are invalid, you can use a liability adjustment to fix them. Initially, you'll need to run a payroll check-up and the payroll summary report to identify discrepancies. Once you've identified each discrepancy, you can create the necessary adjustment(s).
Here's how:
After creating the adjustment, you can run your payroll summary and payroll liability balances reports to confirm the amounts to be paid are accurate.
I've also included a detailed resource about adjusting liabilities which may come in handy moving forward: Adjust payroll liabilities
Please don't hesitate to send a reply if there's any additional questions. Have an awesome day!
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