QuickBooks Team
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Re: Employee Taxes Incorrect Selection - Federal Unemployment Tax (Company Paid)

Hi there, @tlshuey.


Welcome to the Community. Having your FUTA tax liability to be corrected is my priority so let's get this taken care of.


You can create a negative liability adjustment to offset the Federal Unemployment tax liability.


Here's how:

  1. Click on Employees at the top.
  2. Select on Payroll Taxes and Liabilities
  3. Click on Adjust Payroll Liabilities.
  4. Select the correct Effective Date.
  5. In the Taxes and Liabilities section, click the Payroll Item column and select the correct payroll item.
  6. Enter the negative amount of the adjustment.
  7. Click Accounts Affected and choose Do not affect accounts.
  8. If you have additional employees, click Next Adjustment and repeat the steps for each affected employee. 

To know more about the process, please check out this article: Adjust payroll liabilities.


This information should help you get back on track. Feel free to reach back out to me if I can be of additional assistance. I'll make sure to get back to you as soon as I can. Enjoy your weekend!