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Stacy5
Level 2

State Unemployment Rate Change

The State reduced my unemployment rate that took effect Jan 01 but I did not get the notice until Mar 30 (I file/pay quarterly)

 

I have updated QB Desktop to the new rate but QB is still showing the amount that is owed at the higher rate. 

 

1.  Can I just override the amount on the check when I pay it to the reduced amount?  Which would obviously make it look like I underpaid.

 

2.  How do I adjust the liability down to $0.00 once paid? 

1 Comment
RCV
QuickBooks Team
QuickBooks Team

State Unemployment Rate Change

I know a way on how you can change the State Unemployment Insurance (SUI) rate in QuickBooks, 

info877.

 

If we override the amount on the check, the new SUI rate will not affect the moment you created a new paycheck. We need to change the new SUI rate in the Payroll Item List 

 

Here's how:

 

  1. Go to List on the top menu.
  2. Choose Payroll Item List.
  3. Double-click the State Unemployment Tax item.
  4. Tick Next and Next until you reach the Company tax rates for [year] section. 
  5. Enter the correct rates for each quarter.
  6. Tap Continue if the Payroll Tax Rate Change Warning appears to change the tax rate for the current quarter.
  7. Press Next.
  8. Click Finish.

Once done, follow the detailed steps in the SUI rate change in the current or prior quarter section in this article: Change State Unemployment Insurance (SUI) rate. The steps will provide you to run a Payroll report to determine the amount you need to adjust. Then, you can see there an article on how to use a wage base adjustment to correct an employee's year-to-date (ytd) information.

 

I've got a link here that provides you with articles about managing your payroll: Pay employees, enter timesheets, and send payroll forms.

 

Keep me posted if you need a hand with customizing payroll reports or any QuickBooks related. I'll be here to help. Take care always.

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