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Debbie4564
January 21, 2020
Question

How do i change a limit on a payroll item

  • January 21, 2020
  • 4 replies
  • 0 views
Original commenter did not share additional details

4 replies

BigRedConsulting
BigRedConsulting
January 21, 2020

If it is allowed for the item, edit it and step through the wizard to find the limit.

 

If no limit field appears, as will be the case for most taxes, then the limit for the item is maintained by the tax table updates you get with a payroll subscription.

K
kjbagg
April 17, 2020

The limit given to me by the State of Michigan for Unemployment Tax and Obligation Assessment is $ 9500 but the tables are only displaying $9000. This makes all payroll calculations inaccurate how can I change that limit?

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MaryAnn_E
January 21, 2020

Hi @Debbie4564,
 
To change the limit on your payroll item, you can go to the Payroll Item List page. Let me give you these steps to do it.

 

Here's how:

  1. Go to the List menu in your QuickBooks Desktop.
  2. Choose Payroll Item List.
  3. In the Payroll Item drop-down, select Edit Payroll Item.
  4. You can make the necessary changes you wanted for in the Edit Payroll Item window. The Liability/Expense Account Associated with the item, How to Calculate the item, and/or Default Rates and Limits (The rates and limits entered will affect all employees). Please take note that you can't edit the payroll item type. If you want to change it, create a new payroll item.
  5. Click the Next button and hit Finish.


If you are referring to the payroll item of the State or Federal taxes, this can't be edited because of its basis on the payroll tax table updates.


For reference, you can visit these articles to help you track the employee's year-to-date wages and tax amounts:

Correct year-to-date (YTD) additions or deductions on a paycheck when the wrong tracking type was used
How to use a liability adjustment to correct an employee's year-to-date information

 

Just let me know anytime if you have related concerns about payroll. I'd be glad to help you further.

 

 

B
BernHodg
October 7, 2020

My QB didn't enter the updated tax limits for 2020 for RI State Unemployment taxes.  The limit is $25,500 this year and QB still has it at $24.000.  There doesn't seem to be any way to change it.  It's supposed to update automatically.  Other taxes updated correctly.  I keep having to adjust payroll liabilities each quarter to correct it.  How do I fix this? Thanks.

    K
    kthimwhite
    January 6, 2021

    I received notification from the State of Alaska that the SUI taxable wage limit is now $43,600.00 for 2021. I have done the most current payroll updates and my rate is still showing as $41,500.00 in QuickBooks Payroll Item List, which was the 2020 rate. I can't see where I can manually update the rate in the edit mode. Does QuickBooks do the limit adjustment in their updates? If so, when?

    C
    Catherine_B
    January 7, 2021

    Hello there, 

     

    QuickBooks Desktop automatically enters the new wage limit once we receive updates from the Agency. This is to ensure we stay compliant with your state tax laws and regulations. Wage base limits are updated by the payroll tax table. We don't have a specific time frame yet when we'll be rolling out the new update. Just ensure that both QuickBooks Desktop and the payroll tax table are updated. 

     

    You can check out these articles for future reference in handling your state wage base limit: 

     

    We apologize for the delay and I do appreciate your patience. Take care and stay safe!

    R
    rdjohnson
    January 2, 2022

    The problem is that Intuit updates the limit for unemployment before the end of 2021.  THerefore, I paid more than I had to because my December, 2021 payroll was using the 2022 limit versus the 2021 limit.  We need to be able to change this after completion of the final payroll for year.

    G
    gijerr
    March 22, 2025

    My Michigan UIA limit is set at $9000 and needs to be set at $9500. There is no option to change this. How do I alter this limit?

    H
    Heide DC
    March 23, 2025

    We can set up Michigan's secondary wage-based payroll item for the higher limit since there's no option to change your State Unemployment wage limit, Gijerr. Let me share the recent updates about this.

     

    As part of the February 2025 release, Michigan State has reduced the unemployment taxable wage base from $9,500 to $9,000 per employee for businesses in good standing with the Michigan Unemployment Insurance Agency (UIA). If your business is subject to a higher wage base of $9,500, follow the steps below:

     

    1. First, download and install the latest payroll update. The Add Item Wizard for the new Michigan UI Wage Base Increase item will launch automatically when you pay employees or add new Michigan employees.
    2. Complete the Add Item Wizard.
      • From the Does your MI UI Company rate included in the UI rate screen, select No.
      • In the Have you already created your payroll item to track MI UI Wage Base Increase screen, select No, then Next.
    3. Select the agency vendor name, or add it. 
    4. Enter your MI unemployment account number, and select Next.
    5. From Do you want to set up affected employees, select Yes then Next.
    6. Enter your Michigan unemployment tax rate.
    7. Select Next, then Finish.

     

    For more information on adding MI's secondary wage base, check this article: Set up Michigan’s secondary unemployment wage base.

     

    Moreover, you can run the Employees & Payroll report to see how QuickBooks calculates tax amounts on employee paychecks and the wage base limit for each employee for each tax. You can check the steps in this article for more detailed instructions: How to see your employee wage base limits.

     

    If you have other queries about managing your unemployment wage base limit in QuickBooks Desktop payroll, I'll be around to answer any queries you have.

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