Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
Connect with and learn from others in the QuickBooks Community.
Join nowFederal Unemployment Liability line item was set INACTIVE at end end the first quarter last year when it was noticed (and correctly so)..... There was an adjusting entry made to zero our the liability. (The issue was resolved)
With the first payroll of this CY (2022), when payroll reports were ran after payroll checks cut, there shows the Federal Unemployment Liability Payroll line again........ I went to make an manual adjustment but since it is actually INACTIVE, it won't allow adjustments.
Why would an inactive payroll item pull in liabilities without being reset ACTIVE?
I'd be glad to help you clear out the liability, NNeese.
Taxes with positive balances will still show up in the Pay Liabilities window even if they are made inactive. You can temporarily make it active again so you can make the adjustment. Then, inactivate it again once the amount is removed. Here's how:
Once done, create a negative liability adjustment to zero out the amount. Here's an article about this in case you need an extra guide: Adjust Payroll Liabilities in QuickBooks Desktop.
After the amount is removed, make sure to go back to the Payroll Item List and make it inactive again.
You also need to make sure that none of the employees are subject is subject to FUTA so QuickBooks will no longer calculate it. You can go to the employee's profile and uncheck FUTA in the State tab. You can use this article as a guide: Set up Tax Exempt Employees.
Feel free to check out these articles in case you need more help when running payroll reports:
Don't hesitate to ask follow-up questions if you need more help from us. I'd be glad to jump right back and guide you again.
@NNeese wrote:RE: Why would an inactive payroll item pull in liabilities without being reset ACTIVE?
Making a payroll item inactive just hides it on the list. It doesn't mean it won't be used. It's the same with any other list record in QuickBooks, like an account on the chart of accounts or a name on the customer or vendor list.
To prevent Federal Unemployment from calculating and being reported on payroll forms, remove the tax from each employee by de-selecting it on the Federal Tax tab:
If yo set up the default employee to not include the tax, then new employees will not have it selected by default. Otherwise, they will. Start on the QB menu at Edit | Preferences to do this:
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
For more information visit our Security Center or to report suspicious websites you can contact us here