How to Change Your SUI Rate in QuickBooks
In this tutorial, we will learn how to change your SUI rate in QuickBooks.
To do so, follow the steps given below:
Select Lists > Payroll Item List.
Double-click the State Unemployment Tax item, which is typically named as state abbreviation -Unemployment Company.
Select Next > Next for the Company tax rates for [annually] and input the correct rates for each quarter.
In case your system date is in between 7/1 and 1/1 you will be required to add the rate for the first quarter of the following year.
Once you input the correct rates, you might get a popup message for Payroll Tax Rate Change Warning, select Continue. Your SUI rates will be updated.
Select Next once and select to clear any compensation items that are not subjected to your state’s unemployment tax then check with your state’s unemployment department for more information.
Select Next > Finish
In case you change your SUI rate in the middle of a current quarter or in a prior quarter,QuickBooks will not automatically adjust the tax amounts collected for any employees who have reached the wage limit prior to the rate change. In order to adjust the tax amount collected for SUI, you will be required to do a manual tax amount adjustment for every affected employee for each quarter affected.
In case you need to adjust SUI wage bases or amounts reported for the employees, set up a Payroll report to analyze these numbers.