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    Fix incorrect state unemployment (SUI) or withholding (SIT)

    Article ID: 1000438

    Problem

    Your employee's paycheck has an incorrect amount calculated for state unemployment insurance (SUI)or state withholding (SIT).

    This type of error is usually caused by incorrect employee state tax setup or payroll item setup.

    Expected Outcome

    You will be able to resolve the error and correct the wrong SUI or SIT amount calculated on the paycheck.

    Assumptions

    Details

    For state unemployment (SUI) and state withholding (SIT) to calculate correctly on a paycheck, you must correct any error in the setup before creating a new paycheck.

    To resolve the error:

    Verify state taxes set up for the employee in the Employee Profile:

    1. Go to the 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.
    4. Click the Taxes button.
    5. Click the State tab.
    6. Verify that the following items are set up correctly:
      • State Worked / State Subject to Withholding
      • SUI is appropriately marked
      • Extra Withholding (adding extra withholding will increase the amount collected for SIT)
      • Filing status
      • Number of allowances
    7. Before creating a new paycheck, make any necessary changes to the setup.
    8. Click OK to save and close.
    An employee may have zero state withholding and still be correct. If the employee wages are not high enough to meet the threshold based on their allowances, filing status, and pay period, then QuickBooks will not withhold state income tax.

    Verify the SUI rate you have in QuickBooks:

    1. From the top menu bar, choose Lists > Payroll Item List.
    2. Double-click State Unemployment.
    3. Click Next > Next to view the rate.
    4. See instructions on how to change SUI rate by selecting the one for your payroll service:
    5. Click Next.
      Note: By default, QuickBooks marks payroll items subject to and exempt from SUI, according to your state's guidelines.
    6. Click Next.
    7. ClickFinish.

    Verify if the employee had reached the SUI wage base limit:

    To verify your employee's SUI wage base, 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.
    4. Under the Wage Base column, verify from the wage base total if your employee had reached the limit.
    Note: If the employee had already reached the annual wage base limit, QuickBooks will stop calculating SUI on paycheck. See current taxes and rates and wage bases limits.

    Verify the setup for payroll items used on paycheck:

    1. From the top menu bar, choose Lists > Payroll Item List.
    2. Double-click the payroll items used on paychecks: deductions, additions, and company contribution.
    3. Click Next until you get to Tax Tracking Type window.
      Tax Tracking type determines the taxability of payroll item and how it reports on your tax filings.
    4. Read the description to see if the type selected meets your needs.

      Note: If you are unsure what tax tracking type to use, consult your accountant or tax advisor.
    5. Edit the payroll item with the incorrect tax tracking type to make it Inactive.
    6. Create a new payroll item with the correct tax tracking type and use it on any new paychecks.
    7. If the employee was previously paid with a check that used the wrong tax tracking type, you may need to adjust their year-to-date totals.
    To learn more, see Correct year-to-date (YTD) additions or deductions on a paycheck when the wrong tracking type was used.

    To fix a paycheck with the wrong state tax calculation:

    If you have not issued the paycheck, delete the paycheck and re-create it.

    To delete the paycheck:
    1. Go to the Employee Center.
    2. Click the employee's name to bring up list of paychecks.
    3. QuickBooks 2013: Click the Transactions sub-tab.
    4. Double-click the paycheck you want to delete.
    5. On the top tool bar, choose Edit > Delete Paycheck.
    6. Click OK when the confirmation message appears.
    After you delete the paycheck, create a new paycheck.

    If you have already issued the check to your employee:

    If the SIT amount was over or under-collected, adjust it on the employee's next paycheck. You can manually edit the SIT amount (to decrease or increase) in the Preview Paycheck window.

    If the SUI amount was over or under-collected, do not edit the amount on the paycheck. To find and fix discrepancies on SUI calculations:
    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.

    6 comments

    Mary5/15/2013

    140

    I had an incorrect SUI rate entered into Quick Books for 2012. I paid the correct amount but now QB is showing I owe for 2012. How can I correct the 2012 rate to get rid of the notice that I owe?

    Reply

    Mary Ann2/19/2013

    I downloaded the lastest payroll updates which included changes to the Georgia withholding taxes. The amounts taken on the checks are much higher than the Georgia Tax tables from the Dept of Revenue show. Is there something wrong with your update?

    Reply

    Kriz2/26/2013

    Hi Mary Ann,

    I work for Intuit and saw your comment. I suggest that you download the latest tax table update as it includes the update on Georgia withholding. The article Gerogia Withholding 2013 provides the details on what is included on the recent update.

    I hope this helps. Thank you for posting a comment!

    Kelly4/11/2013

    Our employer SUI annual limit is incorrectly listed at $8500, but should be $8000. The $8500 is standard for Pennsylvania, but since we are a governmental agency we have a different annual limit. How do I correct this amount to reflect the correct annual limit?

    Reply

    Richard4/15/2013

    I received the message "Payroll setup has detected duplicate payroll items contact support to fix". I know that the duplicate payroll items are for Michgan Unemployment but it will not let me delete one. How can that be fixed?

    Reply

    Mary5/15/2013

    Why doesn't the QB efile payroll allow filing with a 943 designation?

    Reply

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