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Bbergrenr2
October 23, 2018
Question

PA Unemployment Company & Employee

  • October 23, 2018
  • 1 reply
  • 0 views

Good Morning,

 

When I set up a new employee in QuickBooks in September 2018, I must have done something wrong.  When I ran the State Tax Detail report, there were payroll items for PA Unemployment Company and PA Unemployment Employee listed under income subject to tax, which is incorrect.  How do I or where do I go in QuickBooks to remove those 2 line items from the employee?

 

Thank you

1 reply

SophiaAnnL
SophiaAnnL
October 23, 2018

We can go to the employee's profile and remove these items there, Bbergrenr2.

If the employee is not subject to the PA Unemployment tax, you can uncheck the SUI in the employee's profile. You can also correct the State Worked in case it is set up incorrectly.

Like this:

  1. Click Employees at the top, and then select Employee Center.
  2. Double-click the name of the employee.
  3. Go to the Payroll Info tab.
  4. Click the Taxes tab in the upper right-hand corner, and then click the State tab.
  5. In the STATE WORKED section, uncheck the tick-box for SUI.
  6. Click OK twice.

However, if the state worked in the employee's profile is correct but the PA Unemployment is still showing on your reports, we can check the Other tab. This shows the additional taxes for the state.

Here's how:

  1. Follow steps 1 to 3 above.
  2. Go to the Other tab.
  3. Scroll down and look for PA taxes and remove them.
  4. Click OK twice.

Once done, you'll have to make a negative liability adjustment to zero out the PA taxes on the State Tax Detail report. Here's an article for the detailed steps: Adjust payroll liabilities.

I'll be around if you have more questions. Thanks for dropping by.

john-pero
john-pero
October 24, 2018

PA Unemployment does consist of two parts, employer tax at combined rate individually imposed by the state plus an employee contribution whichnis 1/10 of 1%. Both must be calculated and paid and both will show in tax liability until paid. In addition FUTA is imposed.

 

There are exemptions for ag workers, employees of nonprofits, certain directors of corporations 

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beckyjbiter
August 31, 2020

How does the employer part show as a liability? Shouldnt it go to the payroll tax expense when paid?

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