Single paycheck shows income is FUTA eligible, when it is not. How to correct?

I appreciate the screenshot you've added, @KSchadel. I'm here to ensure you correct this so this will not show on your report. 

Based on the picture you've shared, it appears that you've ensured that the SUI checkbox in the State section is unticked. Let's go ahead and proceed in adjusting your payroll liability to correct the year-to-date payroll information that shows in your report.

Adjustments are there to make amendments when a mistake appears in a paycheck. Doing this will ensure that the error won't show in the report. I'll walk you through the process of correcting this paycheck.

Let's run the Payroll detail review report since it contains specific information about their tax liabilities. To open this, here's how:

1. Go to the Reports menu.
2. Select the Employees & Payroll.
3. Click the dropdown, then choose Payroll Detail Review.
4. On the From and To date section, select the Check Date found in the paycheck you'll need to correct.
5. Locate and remember the amount reflected in the Wage Base columns from the Unemployment Company row.

After that, we can adjust this so it won't appear on the report. Here's how:

1. Toggle to the Employees menu.
2. Click Payroll Taxes and Liabilities.
3. Select Adjust Payroll Liabilities.
4. In the Date and Effective Date option, edit it to the check date you've entered in the paycheck.
5. Select Employee in the Adjustment is for, and then choose the it's name from the dropdown.
6. From the Taxes and Liabilities table, choose the Unemployment Company in the Item name column. 
7. Add the appropriate amount from the Amount, Wage Base, and Income Subject to Tax. 
8. Click the Accounts Affected button, then choose your preference.
9. Hit OK to save.

Go back to the report and then refresh it. You'll see that the amount Wage Base and the Amount will be 0.

For reference, check out this article: Adjust payroll liabilities in QuickBooks Desktop Payroll.

You can read this article for guidance in correcting wages, deductions, and contributions: Fix a payroll item with incorrect tax tracking type in QuickBooks Desktop Payroll.

It's my priority to ensure you're paycheck and report details show the correct information. If you have further questions about this, feel free to reply or post in this forum. We'll be glad to assist you.

This is SO helpful, but I do have a few questions about steps 7 & 8 of the second portion. And I feel silly asking, but I would love more insight and to be absolutely sure! 

7. What Amount do I use? Is this the amount in the Company Summary portion of the paycheck? (see attachment) 

8. Accounts Affected: Would this be the liability account in the Payroll Item? (see attachment)

I'm glad to know that the steps provided by my colleague were able to assess your needs in correcting your payroll liability, KSchadel.

Yet, I'd like to request further information about the tax calculation. Since your screenshot shows zero for WA unemployment, it indicates that no amount has accrued from the taxes. Let's hold off on making any adjustments until we have reviewed the calculation of your taxes.

Could you please provide a screenshot of the affected paycheck detail with the amount of $1,410.93 so we can double-check the calculation and pinpoint the exact cause of the issue?

We'll monitor this thread and return to you shortly. Have a good one ahead.

The calculation is 0 because the percentage was set at 0% to ensure it wouldn't be charged incorrectly if someone were to make the Payroll Item active on accident.

So, even though the "Washington Quarterly State Unemployment Statement" shows that we don't owe anything, it does show that the wage base is subject to the tax. My fear is that Washington State will say that we owe a portion, based on the quarterly report showing the wage base. 

Attached is a screenshot of the paycheck details as well as the "Washington Quarterly State Unemployment Statement" from QB Payroll Center File Forms.

I understand that the employee you mentioned isn't eligible for FUTA. To correct this issue, you should take the following steps:

Verify that the employee's wages for that single paycheck were not actually FUTA eligible. Review the employee's job duties, compensation, and any other relevant factors to confirm they are exempt from FUTA.

If the employee is indeed FUTA exempt, you should adjust the paycheck to remove the FUTA calculation. It will ensure the quarterly report accurately reflects the non-FUTA eligible wages.

Additionally, please reach out to our QuickBooks Desktop Payroll support to explain the situation and confirm they do not expect any FUTA tax payments based on the quarterly report. 

The key is to proactively correct the paycheck and communicate with the state to avoid any potential liability or penalties. Let me know if you have any other questions!

I already called in to QB payroll for assistance and they weren't helpful at all. Your explanation isn't helpful. 

Yes, they are FUTA exempt. And this isn't even about FUTA, I neglected to adjust my title when I realized it while typing. Please read the previous responses before responding. That other 2 responders actually provided assistance and step by step help. Your comments just add more frustration to an already trying situation. 

Thanks. 

For some reason my reply didn't get connected to you. Please review the replies and see the attachments. 

Your worries about owing a portion to the WA State Unemployment is understandable, KSchadel. Let me point you in the right direction.

First, the wage base will only show when there are taxable items when you run your payroll. You need to run a Payroll Detail Review to check if you have these on your payroll data. You can follow the steps below to customize this report: 

1. Go to the Reports menu, then select the Employees & Payroll.
2. Click the dropdown, then choose Payroll Detail Review.
3. Click the Customize Report button, then click the Filters tab.
4. From there, search for Payroll Item, then select the WA Unemployment payroll item.
5. Once done, click OK.

If no unemployment payroll data is reflected on the report, you don't have to worry about owing taxes to your state or making payroll adjustments. 

However, if the report shows unemployment data after filtering it, then you need to make adjustments by following the steps provided by SheandL.  

Regarding your questions about Steps 7 and 8, the amounts you need to enter will depend on the data presented in the Payroll Detail Review. If it shows an amount on any of these columns: Amounts, Wage Base, and Income Subjected to Tax, enter a negative amount to offset this data. Additionally, the affected accounts depend on your preferences. You can choose your payroll liability account in the payroll item if you would like to track it on that account. 

Furthermore, you can generate several payroll reports to view your payroll information or business finances. You can also use the features available in the program to manage these reports to your preferences.

Rest assured, I've got you covered if you have any other concerns regarding managing payroll in QuickBooks Desktop. Please use the Reply option below, and I will be more than happy to assist you further. Take care!

MichaelaS, 

Were you able to review the screenshots I sent? The way you explanation everything seem much more clear to the way I understand. Could you provide some additional instructions?

JuliaMikkaelaQ

Can you look at the screenshots I previously attached and verify the amount I put in the negative? I'm thinking it's $0, but want to be sure. 

Also, if anyone would like to call me to go over this so I can get it completed fully, I would really appreciate it! Let me know and I can provide my number. 

Yes we received the screenshots you attached and that's right it should show 0%, KSchadel.

Since you've already set WA Unemployment at 0%, no adjustment is necessary for WA unemployment, as it won't impact your wage base report. The wage base only becomes taxable when you check the SUI box, affecting the total wages on the employee's earnings and quarterly wage base report.

If you would like to ensure that the quarterly state unemployment wage base is accurate, I recommend contacting our Payroll Support Team to guide you further in checking your reports. 

Here's how:

1. Open QuickBooks.
2. Go to Help, then select QuickBooks Desktop Help/Contact Us.
3. Select Contact Us.
4. Give a brief description of your issue, then select Continue.
5. Sign in to your Intuit account select Continue and then Continue with my account.
6. We'll email you a single-use code. Enter your code and select Continue.
7. Select to chat with us or Have us call you.

I've added this article for guidance on how to correct a payroll item ensuring your employee's paycheck is accurate: Fix a payroll item with incorrect tax tracking type in QuickBooks Desktop Payroll.

I'm available to assist you with any questions you may have regarding payroll taxes in QuickBooks Desktop. Please don't hesitate to contact me. Stay safe!

SheandL - I did what you said and wanted to be sure that this is the outcome you said would happen. The Liability Adjustment added a second line item with my correction, so the balance then comes to 0.00 on the Payroll Detail Review report. 

Attached is a screenshot of the Payroll Detail Review report as well as the Quarterly report “UI QTD – Report to Complete Employer’s Quarterly UI Return”.