How do I record an SUI tax overpayment?

safraly · ‎August 21, 2023

I use an outside payroll company, not QB Payroll, but I still need to account for this credit in QB and I"m not sure how best to do that. Thanks!

JamaicaA · ‎August 21, 2023

Good day, safraly.

I'll ensure that the SUI tax overpayment you've made outside QuickBooks reflect in the system accurately. To do that, we need to record it manually.

Since you use an outside payroll company, I'll show you how to manually track these payments as journal entries. To add state unemployment insurance taxes to the program, follow the steps below:

Select the Payroll Liabilities: [State] SUI/ETT Liability for the account.
Enter the amount as a credit.

Just a heads up, you can combine State Unemployment Insurance and State Employment Training Tax into one debit or add them separately. With this, I recommend checking with your accountant for further guidance.

Additionally, if you need to make journal entries for paychecks created outside of QuickBooks, refer to steps 1 and 2 in this article: Manually enter payroll paychecks in QuickBooks Online.

To guarantee compliance with payroll tax regulations according to your state as well as guide you in wrapping them up, visit these resources:

You're more than welcome to reply here if you have more concerns about managing SUI tax overpayments in QuickBooks. If you need to record a specific entry, let me know. I'll be ready to help you out.

safraly · ‎August 23, 2023

Thanks so much! I don't think my question was clear enough - apologies for that.

I don't use Quickbooks Payroll at all, and have a payroll company, through which I run payroll on the regular, pay the appropriate taxes and into EDD, etc. According to my payroll company, CA SUI taxes were overcollected, so a credit was issued to my business checking account, via the payroll company. I think perhaps because I don't use Quickbooks Payroll, I don't have the categories you outlined below as the resolution for this issue (Taxes, resources, tax payments, etc).

Is there a different way for me to account for this SUI credit?

Thanks again!

Sarah

Kurt_M · ‎August 23, 2023

Thank you for getting back here in the thread, @safraly.

We appreciate you for providing more details about your current situation. The good news is that there's a workaround to help you record the State Unemployment Insurance (SUI) even if you don't have a QuickBooks Online (QBO) payroll subscription. You can enter it through journal entry, but before doing so, it's best to consult your accountant to ensure it's done accurately and on point.

If you don't have an accountant, we can help you find one. Feel free to visit this page to find an accountant for your business: Find a QuickBooks ProAdvisor.

Once you're ready, these are the steps on how to create a journal entry in QBO:

QuickBooks Online company.
On the left navigational bar, click + New button.
Select Journal entry.
On the first line, select an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
On the next line, select the other account you're moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
Enter information in the memo section so you know why you made the journal entry.
Select Save and new or Save and close.

You can visit this page for further guidelines: Create journal entries in QuickBooks Online.

Moreover, here are some articles to help you review every data that you've entered, modify the report, and manage journal entries inside QBO:

Once again, it's been a pleasure to have you here today, @safraly. We thank you for trusting the Community Team and that we'll be here if you have any additional QuickBooks-related queries or a goal you'd like to accomplish inside the program. Take care and more power to your business!

safraly · ‎August 23, 2023

Sorry. I'm still a bit confused about this. The credit for the SUI overpayment was directly deposited to my bank account in April via my payroll company, probably shortly after I ran payroll. It's an existing "Received" line item, under "Banking/For Review" in QB. This credit occurred due to liability adjustments, according to the payroll company. I'm just trying to figure out how to categorize/reconcile this credit in QB. Is a journal entry the best way to do that? That looks like something one does when there isn't already an existing transaction, but maybe I'm wrong. I do have an accountant so I can also double check with him about this too. Thanks!

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How do I record an SUI tax overpayment?