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If you've completed a quarter in which the new tax should have been on paychecks

Your liability for state unemployment insurance in QuickBooks is now too high for each completed quarter of the current year in which the new tax should have been on paychecks. You need to reduce this liability by the same amount that the wizard has already increased your liability for the new tax. Note that your total liability for state taxes should remain the same.

  1. To determine the amount of new tax for each employee for a completed quarter, create a payroll summary report for the quarter. The new tax is near the bottom of the report, in the section for company-paid taxes.

  2. For each completed quarter of the current year in which an employee has an amount for the new tax, enter a negative liability adjustment for that employee to decrease the liability for company-paid state unemployment insurance by the same amount.

  3. If an employee reached the annual wage base limit for state unemployment during the current quarter, also enter a liability adjustment for the current quarter. Otherwise, you don't have to enter any liability adjustments for the current quarter (or a future quarter). If an employee has not reached the limit, the tax amount will adjust automatically on the next paycheck.

  4. Edit your liability payment checks for this state for completed quarters to show that you have paid the liabilities for the new tax and have paid less company-paid state unemployment insurance by an equal amount. (The check total should not change.)

  5. As a final checkup, run the Payroll Checkup and print the log of the results displayed at the end. Go to the Employees menu and choose Payroll Service Activities. Click Run Payroll Checkup.

See also

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