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    State Unemployment Insurance (SUI) is not calculating correctly on an employee's paychecks

    Article ID: 1000126

    Problem

    State Unemployment Insurance (SUI) is not calculating on an employee's paycheck.

    Assumptions

    Your employee is set up to have SUI deducted from their check. You have updated QuickBooks with the most recent Payroll Tax Table version.

    Expected Outcome

    You will determine why SUI is not calculating on the employee's paychecks.

    Details

    There are several reasons why State Unemployment Insurance (SUI) is not calculating on an employee's paycheck:

    • Your employee may have hit the SUI annual limit.
    • Your employee is not marked as subject to SUI in the Employee Profile.
    • The calculated percentage (SUI rate) is incorrect.
    • The system is auto-adjusting the amount to correct the wage base.
    • Data integrity issue.

    Resolution steps:

    Verify that SUI is set up in the employee's record by following the steps below:

    1. Click Employees menu> Employee Center.
    2. Double-click the Employee's name.
    3. Click the Change Tabs drop-down arrow and select Payroll and Compensation Info. QuickBooks 2013: Click Payroll Info tab.
    4. Click the Taxes button on the right.
    5. Click the State tab and ensure SUI Company Paid is marked appropriately.

    Verify that you have entered the correct SUI rate in QuickBooks. Below are a few steps to guide you.

    1. From Payroll Item List, locate your State Unemployment payroll item.
    2. Double click on your State Unemployment item.
    3. On Edit Payroll Item window, click Next until you get to the screen that shows the quarterly rate. Rate is entered in QuickBooks as a percent (%). See Read SUI rate change notifications to view a sample copy for your state.
    4. If you have incorrect rate, edit the rate and click Next until Finish to save your changes.

    Note:
    By default, QuickBooks marks payroll items subject to and exempt from SUI, according to your state's guidelines.

    Determine whether manual adjustments to SUI amounts have been made by reviewing Payroll Reports. See steps below:

    Manual adjustments to the SUI amounts that were entered directly on paychecks can cause error in calculation.

    To view if manual adjustments have been made, create a Payroll Summary Report:
    1. Choose Reports > Employees and Payroll > Payroll Summary Report.
    2. Enter this calendar year-to-date.
    3. Locate your employee's SUI and double click the accrued amount. This will open a Transactions by Payroll Item report.
      • Any adjustment will appear on the report with a type of Liability Adjustment.
      • If a liability adjustment is the root cause of calculation error on paycheck, you can delete or void the liability adjustment.
        Note: Assisted customer should call Assisted Payroll Support for this type of issue.
    4. Multiply the wage base amount on report by your SUI rate.
    5. Compare your manual calculation results for the amount of wage base and tax amount collected with the report.
    6. If there is a discrepancy, you can adjust totals or make corrections by following the steps in the next topic.


    Note: If employee had reached SUI annual wage base limit, QuickBooks will stop calculating SUI on paycheck.

    Make necessary correction to SUI tax amount or Wage Base. See options below:

    Note: If you have Assisted Payroll, call Assisted Payroll Support for assistance on making any corrections to your State Unemployment.

    If you have tried all the recommended steps in this article yet the calculation error persists, try Verify Data in case you have a data integrity issue.

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    2 comments

    Eileen4/4/2013

    11

    QB has not included the Michigan Obligation Assessment fee of 1.7% in Payroll liabilities. These needs paid alongside the State Unemployment tax quarterly.

    Reply

    Susan5/21/2013

    04

    Hi Eileen,

    Look at this article for the additional steps regarding the Michigan Obligation Assessment.

    Comments can not be added at this time.

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