How to Change the Unemployment Tax Rate in QuickBooks?

Unemployment tax rate is also known as the State Unemployment Insurance (SUI) rate in QuickBooks. It is the rate which is unique for your business and issued by the State Government. This tax is only required to be contributed by the employer and employee contribution is not compulsory unless otherwise specified. This tax rate is fixed by the government and is compulsory and hence no alteration can be made in the same manually. Most of the States update this rate at the beginning of the year. So just in case, the rate has been updated by the government then the update will be brought in by the developer which needs to be installed. In this article, we will try to resolve the query how to change the unemployment tax rate in QuickBooks.

Related Article: How to Change the Taxable Wage Base in QuickBooks?

Following steps need to be carried out to change the unemployment tax rate in QuickBooks Desktop.

  1. Go to Lists and choose Payroll Item List from the same.
  2. Select the State Unemployment Tax item by double-clicking the same. Typically the State Unemployment Tax item is named as The Abbreviation of the State – Unemployment Company name.
  3. As you select next, you will reach the company tax rates column where you can enter the tax rates for each quarter.
  4. After you complete entering the data you will receive a warning message which will read as Payroll Tax rate change warning. As you click on continue, the SUI rates will be updated.
  5. Click on Next to Finish.

It would be noteworthy that any change in tax rate in the middle of the Quarter or any change for the prior Quarters made in the current period will not have any automatic retrospective effect for the employees who have reached to the threshold wage limit in the prior period. Such amendments will be required to be made manually. The effect of any update made in the tax rate will have prospective effect only. The number of employees who will get affected by this change in rate can be determined by generating a payroll report.

If you face any query in determining the number of employees that will get affected due to this change in tax rate and will require manual amendment or you are unable to update the tax rate manually then kindly get in touch with our QuickBooks Technical Support team on our Toll-Free Number ✆+1-800-796-0471. We have a pool of technical professionals who are pro in resolving any QuickBooks related query very fast and efficiently.

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Last modified: August 1, 2018
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