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How flat-rate tax changes affect paychecks

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 paycheck.

You can edit the amount on the paycheck if you want to change the tax amount.

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