I am a 'special district' in the state of Colorado. Becuase the state has us classified as such, wage limits do not apply to my unimployment taxes that i must pay. QB defaults at a $13,100 limit. I did not catch this for the first quarter payment. I was penalized for short paying our unemployment. I am required to pay taxes on 100% of ALL wages for the ENTIRE year. Of course when I tried to run the Colorado Unemployemnt form- QB told me I did not owe anything, because the wages had passed the $13,100 limit during the 1st quarter. I DID call the unemployment office and verified we are EXEMPT from the wage limit- and we must pay unemployment on 100% of the wages. I have NO wage limit. Any suggestions on how to bypass this wage limit- and not have to figure out the payment amount manually every quarter??
Thanks for providing the details of your concern, @clfp.
Wage base limits are set to cap the earnings that are taxed. Our Compliance Team works with the agency so that any updates are automatically applied in the program by downloading the latest tax table, therefore bypassing it is currently unavailable.
In the meantime, you have to manually calculate the deduction for State Unemployment for special districts. Check out the following articles for reference: