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PDP_TMP
Level 2

Why does the Texas State Unemployment Insurance (SUI) Setup state to " Enter your SUI rate WITHOUT the OA and ETA", but there's nowhere to enter the OA Rate?

Is the OA rate supposed to be included with the TX SUI rate, even though is say to enter the SUIi rate without it?
Solved
Best answer September 30, 2021

Best Answers
AlcaeusF
Moderator

Why does the Texas State Unemployment Insurance (SUI) Setup state to " Enter your SUI rate WITHOUT the OA and ETA", but there's nowhere to enter the OA Rate?

Hello @PDP_TMP,

 

I appreciate you for getting back to us here in the Community. Allow me to chime in and provide some clarification about setting up Texas State Unemployment Insurance (SUI) in QuickBooks.

 

I know how important to enter the information correctly into the system. This way, the calculation is accurate, and there will be no errors in the tax calculations.

 

For users using QuickBooks Online, there's an update regarding the Texas Unemployment rate. To answer your question, yes, you'll need to include the Obligation Assessment (OA) rate of 0.3% onto the UI rate.

 

I've already notified our team regarding the instruction reflecting on your end. We'll have this checked to ensure the details are accurate and to avoid confusion.

 

If there's no update from your state, there will be no changes on how the rate is presented in QuickBooks. You can also contact your state for verification regarding the current SUI rate that you should use.

 

For more information, as well as how to make some changes through your payroll settings in QuickBooks, I recommend the following article: Update your State Unemployment Insurance (SUI) rate in QuickBooks or Intuit Payroll.

 

Please don't hesitate to hit that Reply button if you have additional questions regarding your state taxes. Have a great day ahead.

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6 Comments 6
Catherine_B
QuickBooks Team

Why does the Texas State Unemployment Insurance (SUI) Setup state to " Enter your SUI rate WITHOUT the OA and ETA", but there's nowhere to enter the OA Rate?

Hello there, PDP_TMP.

 

Your state sets your SUI rate. This rate is unique to your business. From your statement, you may have different rates. The system needs you to enter the assigned rate to your business on the Annual Rate Notice. You can verify with your state which rate is assigned to you.

 

To start setting it up, you can use these steps: 

 

  1. Go to the Gear icon and click Payroll settings.
  2. Click the pencil icon under the Texas tax.
  3. Refer to your notice from your state and enter your new rate. If the rate is provided as a decimal, you must enter it as a percentage. For example, enter 3.4% (not .034).
  4. Click OK to save.

You can visit the Texas Payroll Tax Compliance page for general tax questions. Further, ensure your SUI tax rate is updated with the current one before making any adjustments. 

 

If you need anything else, please let me know. Thanks for dropping by.

PDP_TMP
Level 2

Why does the Texas State Unemployment Insurance (SUI) Setup state to " Enter your SUI rate WITHOUT the OA and ETA", but there's nowhere to enter the OA Rate?

Thank you for your reply, Catherine_B!  Please allow me to clarify my question.  Below is a screen print for entering the Company State Tax Information as it appears in QuickBooks Online.  My question directly relates to  the instructions included directly below 'TX SUI' to 'Enter your SUI rate WITHOUT the OA and the ETA.'  A place is provided for you to enter the ETA rate, but there is no place provided to enter the OA rate.  If your TX SUI Tax Rate notice indicates an Effective Tax Rate of 2.70%, OA Rate 0.03%, ETA Rate 0.10%; how is it entered in the screen below?  Is the OA Rate included in the 'TX SUI' rate, even though the QuickBooks instructions plainly state to 'Enter your SUI rate WITHOUT the OA?  I want to make sure the Rates listed on my TX SUI Tax Rate notice are entered properly in QBO, so the tax will be calculated correctly.  I know what the State of TX wants.  I'm just not sure what QBO wants.

 

Charies_M
Moderator

Why does the Texas State Unemployment Insurance (SUI) Setup state to " Enter your SUI rate WITHOUT the OA and ETA", but there's nowhere to enter the OA Rate?

It's nice to have you here, PDP_TMP.

 

QuickBooks Online (QBO) only allows you to manually enter the tax rate from the Tax Setup. Even so, QuickBooks is compliant with the latest tax update. That said, OA rate and ETA rate are automatically updated to meet the rates mandated by the state of Texas.

 

In case you need handy instructions on how to update the tax rates, check out the steps below: 

  1. In the left menu, click Taxes
  2. Go to the Payroll tax tab.
  3. In the Taxes section, click the Edit your tax setup link. 
  4. From there, edit the tax rate you want to change. 

For more information about editing payroll tax rates, you can see this article: Update your State Unemployment Insurance (SUI) rate in QuickBooks or Intuit Payroll.

 

For payroll questions when paying employees, you can have this article as your reference: 

Anything else you need help with can be answered here in the Community. Just let me know and I'd be happy to assist. Have a good one.

 

 

 

 

PDP_TMP
Level 2

Why does the Texas State Unemployment Insurance (SUI) Setup state to " Enter your SUI rate WITHOUT the OA and ETA", but there's nowhere to enter the OA Rate?

I don't think you are reading my question, and simply providing a 'text-book' reply.  I'm not questioning my rate.  I know what my rate is and how it is broken down by the State of Texas. 

 

Is there anyone in the QuickBooks Community that has a Texas business, and understands my question?  Based on your 2021 and 2021 Annual Rate Notices, if your rates were listed as follows; please tell me what you would have entered in QBO.

 

I am simply trying to verify how QBO is handling the TX SUI Tax Rates, since the instructions within the QBO Payroll Settings for TX SUI Tax setup specifically  states:

 

Are you including your OA rate in the TX SUI rate, and only separating out the ETA rate?  In the above listed breakdown of rates for 2020 and 2021, would there (in effect) be NO CHANGE in how the tax rate is presented in QBO Payroll Tax setup, and the TX SUI rate in QBO would remain 0.21%?

AlcaeusF
Moderator

Why does the Texas State Unemployment Insurance (SUI) Setup state to " Enter your SUI rate WITHOUT the OA and ETA", but there's nowhere to enter the OA Rate?

Hello @PDP_TMP,

 

I appreciate you for getting back to us here in the Community. Allow me to chime in and provide some clarification about setting up Texas State Unemployment Insurance (SUI) in QuickBooks.

 

I know how important to enter the information correctly into the system. This way, the calculation is accurate, and there will be no errors in the tax calculations.

 

For users using QuickBooks Online, there's an update regarding the Texas Unemployment rate. To answer your question, yes, you'll need to include the Obligation Assessment (OA) rate of 0.3% onto the UI rate.

 

I've already notified our team regarding the instruction reflecting on your end. We'll have this checked to ensure the details are accurate and to avoid confusion.

 

If there's no update from your state, there will be no changes on how the rate is presented in QuickBooks. You can also contact your state for verification regarding the current SUI rate that you should use.

 

For more information, as well as how to make some changes through your payroll settings in QuickBooks, I recommend the following article: Update your State Unemployment Insurance (SUI) rate in QuickBooks or Intuit Payroll.

 

Please don't hesitate to hit that Reply button if you have additional questions regarding your state taxes. Have a great day ahead.

PDP_TMP
Level 2

Why does the Texas State Unemployment Insurance (SUI) Setup state to " Enter your SUI rate WITHOUT the OA and ETA", but there's nowhere to enter the OA Rate?

AlcaeusF, thank you! I am glad to know this is being passed along for correction of the stated instructions within the Texas SUI Payroll Tax Set-up!

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