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ahead4numbers
April 8, 2019
Question

Online Payroll is not picking up the correct FUTA rate for Officer

  • April 8, 2019
  • 1 reply
  • 0 views
I have an Officer who is exempt from State Unemployment Insurance and the FUTA tax is the higher rate of 6%. However, QBO Payroll is applying the regular effective rate of 0.6%. As a result, the payroll taxes, liabilities and 940 Form were all incorrect in 2018. ($42 should have been $420). In the employee record, under tax exemptions, the box is checked for Is an Exempt Corp Officer. What do I have to do in QBO Payroll to change the FUTA tax rate to 6% for 2019?

    1 reply

    Kristine Mae
    Kristine Mae
    April 8, 2019

    Hello there, Ahead4numbers.

     

    First, we need to make sure the SUI tax exemption is checked on your employee's profile. Once done, our system will automatically accrue FUTA liability at 6% moving forward. Here's how:

    1. Click Workers, then choose Employees.
    2. Choose an employee, then click to open the profile.
    3. Click the Pencil icon next to Pay.
    4. Click the Pencil icon under What are Employee's withholdings?.
    5. Click Tax exemptions.
    6. Put a check mark in the SUI box.
    7. Click Done.

    Please check the screenshot as your reference.

     

     

    Once it's updated, I suggest contacting our payroll support to create a payroll adjustment for 2018. Here's how:

    1. Click Help inside QuickBooks Online.
    2. Choose Contact us.
    3. Enter a brief description of your issue, then click Next.
    4. Choose either Message an agent or Talk to a Specialist.

    You're always welcome if you have other payroll concerns. Have a good one! 

    A
    ahead4numbersAuthor
    April 8, 2019
    Thanks for the effort KM but it does not answer my question. The exemption is not the problem, nor is manually adjusting 2018, at this point. Going forward, I need my 2019 payrolls to run correctly.
    Angelyn_T
    Angelyn_T
    April 8, 2019

    Hello there, @ahead4numbers.

     

    I'd be glad to help guide you to the right support who can check further why QuickBooks Online Payroll doesn't pick up the correct FUTA rate.

     

    Once the taxes are set up correctly, QuickBooks Online (QBO) calculates taxes/liability correctly.

     

    To check and verified this further securely, it would be best if you can get in touch with our Support Team. For the support's contact information, you may check it here: Contact the QuickBooks Online Customer Support team.

     

    On the other hand, you may check our Help articles for future reference about QBO and payroll: Help articles for QuickBooks Online.

     

    I'll be right here to help you if you have any other payroll or QuickBooks concerns, just add a post/comment below. Have a great day ahead!

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