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Enter or change state unemployment insurance (SUI) tax rates

The state agency responsible for SUI will inform you about your tax rate yearly. Your SUI tax rate is based on your experience.

If you are a new employer, you are assigned a new employer rate until you have filed unemployment taxes for a period of time. This period of time varies by state. We list the SUI rate, when possible, for new employers in your state at the bottom of the Company State Tax Information page in Help for New Employers.

After the designated period of time, you are assigned an experience rate, which might be higher or lower than the new employer rate, depending on your reserve account balance.The less unemployment that your workers experience, the lower your tax rate will be.

See Payroll Tax Compliance to check if your SUI tax rate changes.

To change or enter new rate:

Important! Delete your SUI rate only if you made a mistake when you entered it, and you haven't yet created paychecks using the incorrect rate. In all other cases, you should update your SUI rate instead. In particular, never delete your (correct) SUI rate for an earlier period, since it's needed to ensure proper record keeping. 

Your state will send you a notice with your State Unemployment Insurance (SUI) tax rate. If the rate has changed, follow these steps to update it in your payroll account.

Intuit Online Payroll

  1. Choose Setup > Tax Setup > State Tax Information.
  2. Find the tax rate you need to change.
  3. Select Change or add new rate.
  4. Referring to the notice you got from your state, enter your new rate as a percentage. For example, enter 3.4% (not .034).Important: Delete a rate only if you made a mistake when you entered it and if you haven't made any payments yet at the incorrect rate. If the rate is incorrect, but you've made payments at the incorrect rate, don't delete it.When the tax agency notifies you that you have a new rate, or if you discover that a rate you've been using is incorrect, enter the new rate and effective date, but do not delete the previous rate. It's part of your historical records.
  5. Enter the Effective Date provided in the notice from your state.
  6. Select OK.

QuickBooks Online Payroll

  1. Select the Gear icon at the top.
  2. Under Your Company, select Payroll Settings.
  3. Select State Tax.
  4. Scroll down to the State Unemployment Insurance (SUI) Setup section.
  5. Select Change or Add new rate.
  6. Refer to your notice from your state and enter your new rate. If the rate is provided as a decimal, you must enter it as a percentage. For example, enter 3.4% (not .034).
  7. Enter the Effective Date provided in the notice from your state.
  8. Select OK.
  9. If changing or deleting a rate has caused a tax overpayment (indicated by a negative amount of tax owed), please contact your state's unemployment division to confirm that the tax was indeed overpaid, and whether they would like you to apply the credit to future debt, or take a refund. Once you have spoken with your state, please contact our customer support for assistance reconciling the credit.


Intuit QuickBooks Online Payroll Error:

We couldn't record your last change because it involves {0}, which is either a deleted account or an inactive employee that you're not showing in lists when adding or updating an SUI rate.

To fix this:

  1. Review employees marked as Not on Payroll.
  2. In the Employment section in the employee's profile, click to check the checkmark box for Show in non payroll list. Click Done.
  3. Click the gear icon on the top right. Under Your Company, click Payroll Settings.
  4. Under Preferences, click Accounting and make sure accounts listed are updated and not deleted.

Intuit Online  Full Service Payroll and QuickBooks Online Payroll Full Service

To change or enter new rate:

Contact customer care to get assistance in updating you state unemployment rate

  • Intuit Online Payroll Full Service - 866.640.9987 option 2
  • QuickBooks Online Payroll Full Service - 866.729.4662 option 1

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