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nwaccounting
Level 1

State/Local Taxes on Employee Contribution

Hello, 

I'm sure this question has been asked before, but I'm hoping someone can help me.  I am trying to fill in State/Local Taxes on Employee Compensation for the application.  I've run the Payroll Summary Report.  I'm not sure the amounts I should enter.  Am I supposed to enter only the employee portion of taxes - withheld, disability (California), and miscellaneous state (Oregon)?  And the employer taxes and contributions - California and Oregon Unemployment plus miscellaneous state (Oregon)?

 

I've attached a screenshot of the 2 sections of the payroll summary report that I'm looking at.  I know that I'm not supposed to include the Federal, Medicare and Social Security lines.

 

Thank you.

4 Comments
john-pero
Community Champion

State/Local Taxes on Employee Contribution

Eligible wages are GROSS WAGE, not reduced by any employee deduction to net, and added to this is employer contributions to retirement accounts, group health insurance premiums, and state and local taxes paid as an expense by employer that us based on income as a percent. Fancy way of saying you INCLUDE your employer share of state unemployment taxes. It is defined as such in the FAQ at sba.gov

RoseWorks
Level 1

State/Local Taxes on Employee Contribution

HI ~ as a followup regarding State/Local Taxes ~ I was planning to utilize Class Tracking in QB - establishing a new "PPP" class for all allowable (forgivable) transactions.  This would enable clean reporting.  From my experience with classes thus far, when you use a class with payroll, ALL the payroll taxes are tagged to the same class, as either the entire check, or by payroll item, depending on the set up.  Does anyone know of a way to segregate out the federal taxes that are not "allowable" for forgiveness on the PPP?  I can do it with a journal entry, but was just wondering if I'm missing an easier way.  Thanks in advance for your thoughts.

 

katherinejoyceO
QuickBooks Team

State/Local Taxes on Employee Contribution

Thanks for coming back, @RoseWorks. At the moment, tracking taxes separately isn't available in QuickBooks. 

 

As a workaround, you can use the journal entry to enter track those. Here's how: 

 

  1. In the Company menu, select Make General Journal Entries.
  2. Enter the necessary information in the fields to create your journal entry. Ensure your debits equal your credits when you’re done.
  3. Click Save & Close.

 

Should you need help with the accounts to use for your journal entry, I'd recommend contacting your accountant to make sure your books are accurate. 

 

You can also find QuickBooks experts if you need one by visiting this link: Find an accountant.

 

As always, we're here to help if you have any other concerns or questions. Stay safe. 

 

 

RoseWorks
Level 1

State/Local Taxes on Employee Contribution

OK - thanks.  Would love it if this was possible in the future -- same goes for using classes to track payroll additions.  Stay well!

 

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