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Change SUI rates
Article ID: 1000245
PrintOverview
Facts About SUI:
- Rate is unique to your business and issued by your state.
- Rate is not part of the tax table update and critical that you enter your current rate in QuickBooks
- Is paid only by the employer, unless you are in a state that requires employees to contribute
- SUI wage base limit is updated by the tax table according to your state's requirements, and cannot be manually changed
- Most states update their SUI rate in the beginning of the year while others such as New Jersey, Vermont and Tennessee, update their rates in the third quarter of the year
Assumptions
- You have an active Intuit Payroll Subscription and use QuickBooks to process your payroll.
- You have the most recent QuickBooks software release and tax table update
- You received a notice from the state that your SUI rate has changed.
Expected Outcome
This article provides basic facts about SUI rate changes and step by step instructions on how to update it in QuickBooks. To make it easier we also added a demo video to walk you through the steps.
Details
To update your SUI rate in QuickBooks, click your Payroll Service from the list below to see the instructions.
Assisted Payroll Service Customers, read more below. . .
Important: If this rate change affects any payroll processed in a previous quarter, do not follow these steps. Contact Assisted Payroll Support. You will also need to contact Assisted Payroll Support if you find discrepancy in your SUI wage base or tax amounts so we can help you fix it in QuickBooks.
If you need to call Assisted Payroll Support, be sure you meet the following requirements:
If you need to call Assisted Payroll Support, be sure you meet the following requirements:
- You must be the primary principal or payroll administrator before we can assist you with a SUI rate change.
- You are logged in to QuickBooks in single user mode.
- You have created a local back up of your QuickBooks company file.
- Be sure you are in single user mode.
- Check whether you have a payroll in QuickBooks that has not been sent. If the new SUI rate must be reflected in this payroll, delete the payroll, update the SUI rate, and recreate the payroll.
- Send two zero payrolls so that you receive payroll service updates, such as rate changes Intuit received from the agency, state ID changes, manual billing charges, etc.
- From the top toolbar choose Lists > Payroll Item List.
- In Simple Start, click Payroll to go to the Payroll Center. Then click the Setup and Maintain drop-down arrow and select View/Edit Payroll Items.
- Double-click the State Unemployment Tax item, which is typically named: [state abbreviation] - Unemployment Company.
- Click Next > Next for the company tax rates for [year], and enter the correct rates for each quarter.
- After you enter the correct rates, click Next > Next > Finish. Your SUI rates are updated.
- Choose Employees > Send Payroll Data.
- In Simple Start, click Related Payroll Activities and select Send Payroll Data.
- Verify that the Items to Send window shows Zero paycheck for zero payroll. Click Send.
Basic, Enhanced or Standard Payroll Service customers, read more below . . .
The majority of states attach a surcharge or assessment to State Unemployment. To ensure that you enter the correct percentage rate for the SUI portion:
To change your SUI rate in QuickBooks:
- compare the breakdown of rate on your notice with a sample copy for your state. See Read SUI rate change notifications.
- if your state attaches an assessment or surcharge item, update the rate for that payroll item (as needed) in QuickBooks.
To change your SUI rate in QuickBooks:
- Choose Lists > Payroll Item List.
- In Simple Start, click Payroll to go to the Payroll Center. Then click the Setup and Maintain drop-down arrow and select View/Edit Payroll Items.
- Double-click the State Unemployment Tax item, which is typically named: [state abbreviation] - Unemployment Company.
- Click Next > Next for the Company tax rates for [year], and enter the correct rates for each quarter.
- After you enter the correct rates, you may get a popup message for Payroll Tax Rate Change Warning, click Continue. Your SUI rates are updated.
- Click Next once and click to clear any compensation items that are not subject to your state's unemployment tax (check with your state's unemployment department for more details).
- Click Next > Finish.
Note: If you change your SUI rate in the middle of a current quarter or in a prior quarter, QuickBooks will not auto adjust the tax amounts collected for any employees who have reached the wage limit prior to the rate change. To adjust the tax amount collected for SUI, you will need to do a manual tax amount adjustment for each affected employee for each quarter affected.
- Click Reports >Employees & Payroll > Payroll Item Detail
- Set the date to view each specific (affected) quarter.
- Click Modify Report Button and select the following:
- Date
- Source Name
- Payroll Item
- Wage Base
- Amount
- Click the Filters Tab. Under Filter select Payroll Item from the list.
- Click the down arrow under payroll Item and select your State Unemployment item.
- Click OK.
- Look at the total wage base column for the SUI and multiply it by your current rate.
- Match results with amount calculated.
Bonnie3/5/2013