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Update your State Unemployment Insurance (SUI) rate

SOLVEDby QuickBooksIntuit Online Payroll1348Updated 1 month ago

Learn how to update your State Unemployment Insurance (SUI) rate in QuickBooks Online Payroll or QuickBooks Desktop Payroll.

Your state sets your SUI rate. This rate is unique to your business. If you’re a new employer, your state assigns you a new employer rate until you file unemployment taxes for a certain period of time.

Whenever your SUI rate changes, you need to update it in payroll. This keeps your SUI tax liability accurate. We'll show you how.

Note: State Unemployment Insurance is only paid by the employer, unless your state is AK, NJ, or PA that requires employees to contribute.

Update your SUI rate

States send out updated SUI rate notices toward the end of the year, or at the beginning of the new year. Once you have your new SUI rate, here's how you can update it in payroll.

Note: Not sure which payroll service you have? Here's how to find your payroll service.

Here’s how to update your SUI rate:

  1. Sign in to QuickBooks Online.
  2. Go to Settings ⚙, then select Payroll settings.
  3. Next to the state you want to update, select the Edit ✎ icon.
  4. In the State Unemployment Insurance (SUI) Setup section, select Change or add new rate.
  5. Enter your new rate and its effective date. For most states the effective date is 1/1. For TN, VT, and NJ the date is 7/1.
    • If you have already created paychecks with the wrong rate, or need to correct a prior quarter rate, contact us.
  6. If you have a surcharge or assessment tax rates, enter it here as well.
  7. Enter your new rate and its effective date.
  8. Select OK to save your changes.

In QuickBooks Desktop Payroll, your SUI rate isn’t part of the normal tax table updates. You need to update it manually. Here’s how:

Note: Enter your current unemployment rate for the current and any future quarters of this calendar year. Between July and December you can add the rate for next year's first quarter.
  1. Go to the Lists menu and select Payroll Item List.
  2. Double-click [state abbreviation] - Unemployment Company.
  3. Select Next until you reach the page “Company tax rates”.
  4. Enter the correct rates for each quarter.
  5. Select Next, then Finish.

If you have surcharges or assessments

Do you have a surcharge or assessment for state unemployment? If so, you may need to update additional rates in QuickBooks.

  1. Go to the Lists menu, then select Payroll Item List.
  2. Double-click State Surcharge item.
  3. Select Next and follow the onscreen steps.
  4. On the Company Tax Rate page, enter the rate as percentage.

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