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Qollzem
Level 1

Resolving Overpaid Unemployment Insurance

Greetings.

 

We have used QB to pay our payroll taxes automatically for three quarters. Every quarter QB overpays the unemployment insurance by around double the correct amount. I know this because the state (New York) sends us a notice each time.

 

To resolve the problem, a QB Support article says, “Select Payments, find the overpaid tax, then select Resolve.” I can find the three payments, but, of course, none of them has a Resolve button. There is no indication of overpayment in QB.

 

Questions:

(1) How do I get QB to pay the correct amount in the future?

(2) To recover the past overpayments, is my only option to seek a refund from the state, or can I have QB apply them to future payments?

 

Thank you for any help.

 

 

Solved
Best answer 4 weeks ago

Best Answers
RhoiceW
QuickBooks Team

Resolving Overpaid Unemployment Insurance

The discrepancy you're seeing is caused by a rate mismatch between New York State and your settings. QuickBooks calculates your State Unemployment Insurance (SUI) based on the rate entered in your payroll profile. If that rate is higher than the one the state has on file, the system will overpay. 


Here's how:  

 

  1. Click the Gear icon and select Payroll Settings.   
  2. Locate the New York tax section.   
  3. Click the Pencil icon to edit.   
  4. Enter the correct rate provided in your state notice and save.   


Once you save the update, QuickBooks will calculate the correct amount on your next payroll.   

 

You don't see a Resolve button because the tax period is closed or the automated payment is already fully processed. Since QuickBooks acts as a recording tool, it can't pull funds back from the state once they're sent. Your best bet is to contact the state directly to request a refund or ask them to apply the credit to your future quarters.

 

Have more questions? Drop a reply below and we'll be happy to help.   

View solution in original post

1 Comment 1
RhoiceW
QuickBooks Team

Resolving Overpaid Unemployment Insurance

The discrepancy you're seeing is caused by a rate mismatch between New York State and your settings. QuickBooks calculates your State Unemployment Insurance (SUI) based on the rate entered in your payroll profile. If that rate is higher than the one the state has on file, the system will overpay. 


Here's how:  

 

  1. Click the Gear icon and select Payroll Settings.   
  2. Locate the New York tax section.   
  3. Click the Pencil icon to edit.   
  4. Enter the correct rate provided in your state notice and save.   


Once you save the update, QuickBooks will calculate the correct amount on your next payroll.   

 

You don't see a Resolve button because the tax period is closed or the automated payment is already fully processed. Since QuickBooks acts as a recording tool, it can't pull funds back from the state once they're sent. Your best bet is to contact the state directly to request a refund or ask them to apply the credit to your future quarters.

 

Have more questions? Drop a reply below and we'll be happy to help.   

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