QuickBooks uses tax tables to determine the rates and limits for federal,
state, and specific local taxes. The tax table automatically handles rounding
discrepancies and retroactive tax rate changes for flat-rate taxes, including
FICA, FUTA, SUI, and SDI taxes (some SDI taxes are flat-rate).
Non-retroactive tax rate changes are not adjusted.
If you subscribe to QuickBooks
Payroll, you'll receive
payroll updates, which
include the most current tax tables available. When you create paychecks, you
may notice the tax rate changes.
Important: If you or the tax table changes a flat-rate tax, and then
you edit a previously recorded paycheck, the paycheck will reflect the new tax
rate (even if you do not change any amounts). For example, if there has been a
rate change for a flat-rate tax, and you edit a paycheck to assign a customer
or job to an earnings item, when you re-record the paycheck, the tax table
automatically updates the paycheck with the new tax rate as calculated from the
beginning of the year, even though you did not change any of the amounts on the
You can edit the amount
on the paycheck if you want to change the tax amount.