Payroll Taxes

Warm greetings, Amanda. I'm here to ensure that you can utilize payroll.

You can still utilize payroll without a TN number if you add State Unemployment Insurance. If you're unsure about your tax rate, use 10% to avoid penalties. Make sure to adjust it later to avoid overpaying taxes.

Here's how: 

1. In your QuickBooks Online account, hover to the Gear icon, then select Payroll settings.
2. Next to the state you want to update, select the Edit icon.
3. In the State Unemployment Insurance (SUI) Setup section, select Change or add new rate.
4. Please 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.
5. If you can't change the current year's rate, send your notice to us. We'll update the rate for you.
6. Select or enter any updated surcharge or assessment rates, then click OK.

Moreover, if you want to look closely at your business's finances, you can run a payroll report. It will provide a detailed summary of your company's payroll expenses, including employee salaries, bonuses, taxes, and other related costs. 

You can always rely on me if you need assistance running payroll in QuickBooks Online. To enter your queries, click the reply button below. 

But my client pays unemployment claims by reimbursement. 

Allow me to chime in and help you with how this goes, Amanda. 

SUI reimbursable means the state will bill you directly for any SUI if you have a claim. The state will give you an SUI account number. You're required to file an SUI form each quarter to report wages. In QuickBooks, your SUI rate is 0%.

To set up SUI reimbursable in QuickBooks Online, here's how:
 

1. Select Gear icon, and then select Payroll Settings. 
2. From your [State] tax, choose Edit .
3. Enter your SUI account number and your SUI rate: 0.00%
4. If applicable, select any tagalong or surcharge rates: 0.00%
5. Click OK, and then hit Done.

It's important to note that you won't be exempting any of your employees from SUI since you're still required to file an SUI tax form with wages. 

For more information about setting up SUI for nonprofits in QBO, you can visit this article: Set up federal and state unemployment insurance for churches and nonprofits

Additionally, if you're interested in learning more about running payroll reports in QBO to get a better view of your business's finances, check out this article: Run payroll reports

Feel free to reach out to us if have any further questions about SUI in QBO. The Community is always available to help you. Take care!