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Renee87
Level 1

Short Term Disability and Unemployment Taxes

Our company does not pay short term disability. We have another company that pays the disability payments and pays the the Medicare and Social Security tax. We are responsible for the Federal Unemployment and State (Virginia) Unemployment taxes. How do I account for the unemployment taxes?

1 Comment 1
AbegailS_
QuickBooks Team

Short Term Disability and Unemployment Taxes

Hi there, @Renee87.

 

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

 

You can set up your Virginia Unemployment 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 state name and State Unemployment in the drop-down.
  6. Type VA Unemployment 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.

 

Refer to this article for complete steps: 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!

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