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T
thechurchofgrady
October 30, 2022
Question

How do I finish setting up payroll taxes, when a SUI number is required, but we are a church and SUI exempt?

  • October 30, 2022
  • 1 reply
  • 0 views
We have all employees set as exempt, but it still prompts us to enter a SUI account number.

1 reply

A
Archie_B
October 31, 2022

Hi there, thechurchofgrady.

 

I'm here to share some information and guide you in setting up state unemployment insurance (SUI) exemptions in QuickBooks Online Payroll.

 

Churches may be subject to, exempt from, or eligible for reimbursement from state unemployment insurance. You can contact the state unemployment agency if you're unsure of the status of your church.

 

  • Subject means you’re required to pay SUI tax and file the SUI tax forms each quarter.
  • Reimbursable means you only pay SUI if one of your employees files an unemployment claim. You’ll get an SUI account number and your SUI rate is 0.00%. You won’t have to pay any SUI tax, but you do need to file SUI tax forms each quarter with your employees’ wages.
  • Exempt means you don’t pay SUI tax or file any SUI tax forms. You won’t get an SUI account number or rate.

 

If your church is exempt for SUI tax or file any SUI tax forms, I'll show you how to set it up in QuickBooks Online Payroll.

 

Here's how:

 

  1. Go to Payroll, then Employees.
  2. Select your first employee from your employee list, and then select Edit Employee.
  3. From What are [Employee’s] Withholdings?, click on Edit ✎.
  4. From the Tax Exemptions section, tap the State SUI box.
  5. Hit Save, and then select Done.
  6. Repeat steps 2–6 for each employee.

 

I'm adding this article for more information or if you need to set up SUI reimbursable: Set up federal and state unemployment insurance for churches and nonprofits.

 

Let me know if you have other concerns about payroll taxes by leaving a comment below. I'll be checking your response. Have great day!

T
themurraygang
January 2, 2024

I want to set it up for Quickbooks to file and pay taxes automatically. However, when I am setting up my tax preferences it is still prompting me for an account number for SUI. We are an SUI exempt church

J
JamesAndrewM
January 2, 2024

I see you want to set up payroll taxes and pay taxes automatically. During the process, you are prompted for your account number for SUI, even if you are an SUI-exempt church. Worry not. I've got steps you can follow to set up an SUI exemption.

 

The first step would be to exempt your business from SUI. Follow these steps:

 

  1. Go to Settings ⚙, and then choose Payroll Settings. 
  2. From your [State] tax, click Edit ✎.
  3. Leave the SUI account number blank.
  4. Enter your SUI rate: 0.00%
  5. If applicable, select any tagalong or surcharge rates: 0.00%
  6. Select OK, and then pick Done.

 

Next, exempt your employees from SUI. I suggest reviewing your employees' profiles and business setup. Here are the steps:

 

  1. Go to Payroll, then click Employees.
  2. Select your first employee from your employee list, and then choose Edit Employee.
  3. From What are [Employee’s] Withholdings?, click Edit ✎.
  4. From the Tax Exemptions section, select SUI and any applicable SUI tagalong or surcharge taxes.
  5. Select Save, and then pick Done.
  6. Repeat steps 2–6 for each employee.

 

For detailed information, refer to this article: Set up federal and state unemployment insurance for churches and nonprofits.

 

I'm adding these articles you can use in the future:

 

 

With that information, you can fully exempt your church from SUI, and will let you successfully set-up and pay taxes automatically. If you have more questions about set-ups for federal and state taxes, post them here in the forum. I'll be around to help you with them. Stay safe!

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