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3rriverview
July 13, 2022
Solved

California UI amount did not auto update on 1/1/2022.

  • July 13, 2022
  • 1 reply
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Everything else automatically updated, but unemployment amount did not.  Now I have to catch up those taxes for employees.  What do I do?

Best answer by Mark_R

I appreciate your prompt reply, @3rriverview.

 

I've come to share some information about updating payroll taxes in QuickBooks Desktop and help you update employees' taxes for the first and second quarters.

 

Changing the rate of a payroll item, like SUI, can cause incorrect wage and tax amounts on tax forms. To correct your employee's taxes for the first and second quarters, you'll want to enter a wage base and a tax adjustment. Here's how:

 

  1. Run and customize the payroll detail review report.
  2. From the report, verify that tax amounts are calculated correctly based on wage limit and tax rate. Then, determine if you want to decrease or increase the wage base and tax amount.
  3. Once done, go to the Employees menu and select Payroll Taxes and Liabilities. Then, choose Adjust Payroll Liabilities.
  4. Select the correct Effective Date (It should be the last day of the affected quarter) and click Employee Adjustment.
  5. Choose the affected employee and select the SUI from the Item Name column.
  6. Enter the amount of the adjustment in the corresponding column (negative to decrease, positive to increase).
  7. Click the Accounts Affected. Then, choose Do not affect accounts or Affect liability and expense accounts.

 

Once done, you can click the Next Adjustment button to enter adjustments for the rest of your employees. Then, run the Payroll Detail Review report again and verify the accuracy of the adjustments you entered.

 

I'm adding this article for more guidance: Adjust payroll liabilities in QuickBooks Desktop Payroll.

 

Please let me know how things go, @3rriverview. I'll be around to provide further assistance. 

 

You may want to view and print payroll reports on QuickBooks Desktop. This will help you keep track of your payroll details and history, especially at year ends.

 

Have a good one.

1 reply

R
RoseJillB
July 13, 2022

Thank you for bringing this one to our attention, @3rriverview.

 

Let me share some insights and guidelines on how you can comply with state payroll tax regulations in QuickBooks Desktop (QBDT).

 

In the first or third quarter of each year, your state changes the SUI rate. Your SUI rate is not updated as part of the regular tax table changes in QuickBooks Desktop Payroll. It has to be manually updated. Here’s how:

 

  1. From the Lists menu, select the Payroll Item List.
  2. Tap the CA-Unemployment Company twice.
  3. Press Next until you reach the page “Company tax rates”.
  4. Enter the correct rates. Then, select Next and Finish.

 

I added this article for more information about updating your State Unemployment Insurance (SUI) rate in QuickBooks or Intuit Payroll.

 

Furthermore, I added the following article to ensure compliance with state payroll tax regulations. Also, to learn how to file your state payroll tax forms and pay your state taxes electronically.

 

 

If you need further assistance with payroll taxes, you can tap the reply button to post them here. Have a good one!

3
3rriverviewAuthor
July 13, 2022

Thank you @RoseJillB for the information that the SUI updates on first and third quarters.  I didn't know that!  I have already updated the tax percentage for future paychecks, but I need to update the taxes for all of my employees for the first and second quarters.  How do I go about that?

M
Mark_RAnswer
July 13, 2022

I appreciate your prompt reply, @3rriverview.

 

I've come to share some information about updating payroll taxes in QuickBooks Desktop and help you update employees' taxes for the first and second quarters.

 

Changing the rate of a payroll item, like SUI, can cause incorrect wage and tax amounts on tax forms. To correct your employee's taxes for the first and second quarters, you'll want to enter a wage base and a tax adjustment. Here's how:

 

  1. Run and customize the payroll detail review report.
  2. From the report, verify that tax amounts are calculated correctly based on wage limit and tax rate. Then, determine if you want to decrease or increase the wage base and tax amount.
  3. Once done, go to the Employees menu and select Payroll Taxes and Liabilities. Then, choose Adjust Payroll Liabilities.
  4. Select the correct Effective Date (It should be the last day of the affected quarter) and click Employee Adjustment.
  5. Choose the affected employee and select the SUI from the Item Name column.
  6. Enter the amount of the adjustment in the corresponding column (negative to decrease, positive to increase).
  7. Click the Accounts Affected. Then, choose Do not affect accounts or Affect liability and expense accounts.

 

Once done, you can click the Next Adjustment button to enter adjustments for the rest of your employees. Then, run the Payroll Detail Review report again and verify the accuracy of the adjustments you entered.

 

I'm adding this article for more guidance: Adjust payroll liabilities in QuickBooks Desktop Payroll.

 

Please let me know how things go, @3rriverview. I'll be around to provide further assistance. 

 

You may want to view and print payroll reports on QuickBooks Desktop. This will help you keep track of your payroll details and history, especially at year ends.

 

Have a good one.

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