Unemployment Tax Accounts

Hi there, @Nubes.

I'm here to guide you on how to set up tax accounts in QuickBooks Desktop (QBDT). 

You can set up your unemployment account for MN Federal Loan Assessment Interest Tax by going to the Payroll Item List in your account. Let me show you how. 

1. Choose Lists, then Payroll Item List.
2. Click the Payroll Item button and tap New.
3. Pick Custom Setup, then Next. 
4. Select State Tax and Next.
5. Elect your state name and State Unemployment in the drop-down.
6. Type MN Federal Loan Assessment Interest Tax in the name field, then click Next.
7. Enter the name of the agency this tax is paid to, and the account number if you already have it. If you don't have it yet, you can leave it blank. 
8. Choose liability, expense accounts, and tax rate, then click Next. 
9. Review the wage item calculation and tap Finish. 

For the complete steps, visit this article: Set up payroll items for new state taxes.

In case you want to review your employee's wage base, you can run the Payroll Detail Review report in QuickBooks. For more details about it, please see this article: Payroll tax and wage base limits.

State wage bases and limits vary for State Income Tax and State Unemployment Insurance. Please see Payroll Tax Compliance for wage bases and limits.

Let me know if you have further questions about your unemployment account. I'm always willing to help you. Take care!

Thanks for your assistance. I get as far as step #5 and I get this message:

Hello there, @Nubes.

Thanks for giving the above steps a try. I appreciate you for letting us know the result of the recommended solution.

Based on the screenshot you've shared, it looks like you already created a payroll item for Minnesota. You can review the payroll item created and verify if there's one. 

In case you already created a payroll item for MN before, you can edit it, so you can track individual amounts on a paycheck and accumulate year-to-date (YTD) wage and tax amounts for each employee. Let me show you how.

1. Go to the Lists menu, then select Payroll Item List.
2. Right-click on the appropriate item, then choose Edit Payroll Item.
3. Tap Next until you reach the default rate and limit. 
4. Enter the exact amount or percentage.
5. Hit Finish. 

After that, QuickBooks will calculate the payroll using the new rate and it will show in employee's paychecks. For detailed steps, click this article: Edit a payroll item.

Also, make sure to run Payroll Updates in your QBDT. These updates will provide the most current and accurate rates and calculations for supported state and federal tax tables, payroll tax forms, and e-file and payment options. Here's how:

1. Go to the Employees menu at the top, then pick Get Payroll Updates on the drop-down.

2. Select Download Entire Payroll Update, then click the Update button.

You may refer to this link: Get the latest payroll tax table update.

Once done, you check the update number and release by vising this page: Latest payroll news and updates.

To find details on tax forms, withholdings, unemployment and other tax, e-file and pay details, general state agency information, and employer registration, check out this article: Minnesota Payroll Tax Compliance.

Additionally, we also have a guide on how to adjust payroll liabilities in QuickBooks Desktop that I'm sure you'll find helpful. It has details on how you can fix incorrect payroll liabilities.

Let me know if you have other questions about setting up a payroll item or any QuickBooks related. I'm always here to lend a hand. Thanks for joining us today and have a nice day!

I have same issue as @Nubes.  

Yes, we have our REGULAR state unemployment taxes setup.  But this special federal 4% loan assessment is a NEW payroll item we are trying to setup.  Please update your steps for creating this....

1)  If choose "State Tax", maybe we need to choose "Other taxes" for the next part (instead of unemployment)?

or 2)  Choose 'Other Tax" instead of "State Tax" from the first screen?

We all this need this setup right away.   It is a bit disappointing that this hasn't been completed in a payroll update.  Thank  you!

Hello there, @jenny950.

I'm here to provide clarification regarding the option that you can select once you already have an existing state unemployment tax set up in QuickBooks Desktop.

You'll need to choose State Tax as the Payroll item type. This way, the system will recognize the specific state that you're going to enter. Just select Other Taxes as the type of tax for the item and continue with the setup.

Please see the screenshots attached for your reference: 

After that, enter the name of the agency this tax is paid to, and the account number if you already have it. Then, choose the liability, expense accounts, and tax rate to finish the setup.

For complete details about adding  new payroll item in QBDT, you can always rely on this article: Set up payroll items for new state taxes.

Lastly, to guide you in paying and filing your taxes, here's a link that you can check out: File state tax forms and pay state taxes in QuickBooks Desktop.

Know that my doors are always open to help if you need anything else. Take care, @jenny950. 

Thank you @BettyJaneB  for more clarification!  However, would you please advise on the next steps?

1)  Code from the Pre-Defined list for the Other Tax (like maybe "MI-Obligation Assessment")?

2)  After entering the agency name and payroll accounts, how do you set up the taxable part?  When I type 4%, it wants to know taxable on what payroll items?   And you can't uncheck "Salary".

Just wondering now if this is the right way to setup this special tax?  The 4% is on the Total Unemployment Insurance due (NOT the wages).   

Hi there, jenny950.

I'm here to clear things out for you.

The Minnesota Federal Loan Assessment tax is 4% of the total unemployment tax and has not been used since 2015. Currently, the option to set up a payroll item for this tax is unavailable in QuickBooks Desktop.

Please know that we're already aware that this tax has been reactivated. Right now, our Product Development Team is still making sure that QuickBooks follows all the tax regulations of the Minnesota Department of Employment and Economic Development. Rest assured, we'll keep you updated with its availability through email and in-app notifications.

While we're working, we recommend creating a company liability adjustment to add 4% to Minnesota Unemployment Insurance. This process will increase the tax liabilities so you can pay and track your taxes correctly. Once the adjustment has been made, it will directly flow into the quarterly filing.

In addition, you can always visit our FAQ page to stay current with our latest payroll news and updates. I've also included an article that will guide you in handling your state unemployment taxes in QuickBooks Desktop: E-file or submit unemployment filings.

We appreciate your patience and understanding on this matter. I'm just a comment away if you need more help in dealing with your other payroll tasks.

My MN qtrly unemployment form and payment option are finally available.  However, 4% has been calculated on the total wages not the Unemployment insurance amount due.  How can I get this corrected?

Hi @whyknotunwind,

Given that the MN Federal Loan Interest Assessment is currently not in effect, I suggest you follow the steps provided by my peer @BettyJaneB above. 

She provided detailed steps on how you can set up this state tax, along with screenshots for your reference. I also suggest you keep your QuickBooks Desktop version up to date. And while you're at it, you can also get the latest payroll tax table. 

For additional reference, take a look at this article: Minnesota Payroll Tax Compliance. Here you'll find details on MN tax forms, as well as e-file and pay information. 

Feel free to tap the Reply button if you have additional questions about payroll taxes in QuickBooks Desktop. I'll be sure to handle them for you as soon as I can. 

Great idea - I should update my desktop version.  Except I don't have a desktop version.  I use Intuit online payroll which is next to impossible to get help with.

Here is the info from the state website. Looks like this assessment is in effect in MN.

Assessments for 2021

• Workforce Development Assessment (not a UI tax) - 0.10% of taxable wages 
• Federal Loan Interest Assessment: After your quarterly amount due is calculated, we multiply that amount by 4%. The 4% is NOT applied to your full taxable wages, only to the amount due.
•  

When I run the Intuit report is shows it is in effect too.  However they want me to pay $1819 instead of the $3.60 that is actually due. 

Hello, @whyknotunwind.

Let me route you to the best available support so we further assist you in reviewing the calculation of your state payroll taxes.

Since the Community is a peer-to-peer forum, I'd recommend contacting our Payroll Support team. A specialist can securely review your account and perform payroll corrections if necessary.

1. Login to your IOP account.
2. Hover to the Help icon (?).

3. Tap Continue.

4. Click the Help button on the upper right side.

5. Hit Contact Us. 

6. Choose Intuit Online Payroll, then press the form link. 

7. Complete the needed information, then hit Submit.

They're open Mondays to Fridays, 6 am - 6 pm. 

I appreciate your patience while we're working on this. Let us know if you have any follow-ups or other questions. I'm always here to help. Wishing you a good one.

These instructions do not work.  I elect my state (MN) then select "State Unemployment", then click "Next", and I get the message, "The payroll item for this state has already been defined.  You can edit this payroll item."  I am unable to set up the MN Federal Loan Assessment Interest Tax.  When I run my MN Unemployment report, the report calculates the liability, but I am unable to set up that liability in  my payroll items list to relieve it.  Please advise.

Hello there, @mnspect.

Usually, this error occurs when your data is damaged or corrupted. We can try to run the Verify/Rebuild tool to identify any data issues within your company file. Then, the Rebuild tool will self-resolve it.

Here's how:

1. Go to the File menu, then hover over Utilities.

2. Select Rebuild Data.

3. On the QuickBooks Information window, select OK. Follow the onscreen steps to save a backup.

4. Let the tool repair your file. It may take some time. QuickBooks may seem stuck, but as long as you can move your mouse, the tool is working.

5. When the tool finishes, select OK.

6. Go to the File menu, and then hover over Utilities.

7. Select Verify Data.

8. Let the tool check your file for data issues.

If QuickBooks doesn't find any problems, select OK. However, if QuickBooks finds an issue with your company file, click Rebuild Now.

Also, make sure QuickBooks has its latest release. This is to ensure that everything is up to date.

If you get the same result, I suggest reaching out to our Customer Support. Their tools can get into your account in a secure environment, isolate the error you're having and help you resolve it. You can follow the steps below on how to reach them:

1. Go to the Help menu at the top.  

2. Select QuickBooks Desktop Help.

3. Provide some information about this concern in the search box.

4. Click the Contact Us link at the bottom of the window. 

5. Select Get a call to arrange a callback from a support agent. Or Start a chat to chat with them directly.  

Lastly, to guide you in paying and filing your taxes, here's a link that you can check out: File state tax forms and pay state taxes in QuickBooks Desktop.

Let me know if you have further questions about your payroll. I'm always willing to help you. Take care!

Hi Jenny950,

I was wondering if you were able to get the MN Federal Loan Assessment Fee figured out? I am struggling and everyone I talk to seems to have a different answer. It looks like you were on the right track. Were you able to figure out the next steps from BettyJaneB? This is so frustrating.

Thank you!

Hello, 

Since the pandemic last year I had to let go of my employees and did not hire back until October - 4th quarter of the last year 2021. My state unemployment went down and I never edited the new amount for 2022 so I was deducting too much for my employee. My GA unemployment went from 2.7% to 0.34% in 2021 and is now down to 0.04% for 2022. I was deducting 2.7% in the 4th quarter of 2021 and did not see the error until now. Can you please help me edit this in my books? 

Thank you! 

I'm here to guide you as to how you can edit your state unemployment rate and correct employee deductions in QuickBooks Desktop (QBDT) Payroll, @noobatl1.

Whenever your  State Unemployment Insurance (SUI) rate changes, you need to update it in payroll. This keeps your SUI tax liability accurate. To do this, here's how:

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.

Once you're done, you'll have to manually create an employee liability adjustment. To know the exact amount that needs to be adjusted, you can pull up the Payroll Summary report. Double-click the amount of the payroll item to open the Transactions by Payroll Item report. Then, sort the Total By field by Employee. You can also refer to this article for the step-by-step guide: Adjust payroll liabilities in QuickBooks Desktop.

Also, to further guide you in preparing your tax forms and paying your labilities during this season in QBDT Payroll, I'd recommend using this year-end checklist: Year-end checklist for QuickBooks Desktop Payroll.

Let me know in the comments if you have other payroll concerns and questions about state unemployment taxes in QBDT Payroll. I'll gladly help. Take care, and I wish you continued success, @noobatl1.

Did you get your question resolved with QuickBooks about the MN federal loan interest assessment? It is now one year later and I can't find any resolutions and, obviously, it has not been included in a payroll update.

Nancy B.