Hi MirandaSmo,
QuickBooks has introduced a new feature that allows you to calculate UI (Unemployment Insurance) tax for all employees. Previously, the wage limit for UI tax calculation was set at $9,000. However, with the addition of this new payroll item, employers can now calculate UI tax for wages between $9,000 and $24,000.
To utilize this feature, you'll need to go through the Add Item Wizard in QuickBooks. During this process, they have two options:
- If the increased wage limit does not apply to their business or if your UI rate is less than 5.4%, you can enter a rate of 0%. This indicates that the increase in wage limit does not affect them.
- If the increased wage limit does apply to their business and their UI rate is 5.4%, they should enter a rate of 5.4%. This will trigger the system to calculate the additional wage base for UI tax.
Let me know if you need more help about your payroll item. Take care! l
