I am setting up payroll on quickbooks and there is a specific rate "COVID-19 Recovery Assessment Tax rate" that needs to be set as 0% but quickbooks isn't allowing me.

Hi there, Sbag. The reason why QuickBooks isn’t allowing you to set 0% tax rate is that you need to align with state- mandated regulations. The COVID-19 Recovery Assessment Tax rate has an official range assigned by your state government, spanning from 0.21% to 3.2%. The minimum rate of 0.21% applies to all businesses, and no employer qualifies for a 0% rate under this tax.

Each employer's rate is determined by the state based on factors such as company history, industry classification, and unemployment claims. QuickBooks reflects these state-mandated minimums to ensure compliance with the regulations.

If you still need to proceed with zeroing out the rate, I recommend contacting our Live Payroll Support team. They’re equipped with the tools and expertise to explore the issue further and provide a solution tailored to your situation.

Here’s how:  
 

1. Click (?) Help in the upper right-hand corner of your QBO.
2. Go to the Search tab.
3. Type in your concern, then press enter.
4. Select Contact Us.
5. Choose between Chat with us or Have us call you.

Also, please note that they're available from Monday through Friday from 6:00 AM to 6:00 PM Pacific Time, and on Saturdays from 6:00 AM to 3:00 PM PT.  

If you have additional QuickBooks-related questions, please leave a comment below.