SC Unemployment and Contingency

Hi there, @KathyP1964.

QuickBooks calculates paychecks on your quarterly reports based on the payroll data you input. It can happen that QuickBooks Desktop incorrectly displays a contingency against South Carolina's exemption, and there's a way for us to fix this.

The South Carolina Contingency Assessment may appear in QuickBooks Desktop (QBDT) if a payroll item has been mistakenly created. If South Carolina has confirmed that this assessment is not required at this time, you need to review your payroll items in QBDT to ensure none have been incorrectly set up to include this assessment. You may need to edit or remove any incorrect payroll items to resolve the case.

You can also run a Paycheck Detail report to verify if the South Carolina Unemployment and Contingency taxes are off.

If this issue affects all employees, you need to verify the accuracy of the SUI rate and then, update if necessary, then Recreate the paychecks. Follow these steps:

1. Go to the Lists menu and select Payroll Item List.
2. Double-click  SC - Contingency Assessment.
3. Select Next until you reach the Company tax rates window.
4. Re-enter the correct rates for each quarter.
5. Select Next, then Finish.

If the incorrect calculation happens to all employees, recreate the paychecks. Refer to the article for the detailed steps: Create and run your payroll.

If the issue affects a single employee, you need to check the Year-to-date amount on the paycheck detail report to see if it has reached the wage base limit. If it hasn't and the SUI amount is incorrect, check out Troubleshoot No Unemployment Tax withheld from a paycheck.

You might want to change incorrect payroll items used on paychecks. This article will help you correct it: Edit payroll items used on paychecks.

If you have questions about processing your Unemployment and Contingency claims or need to clarify the payment requirements, please reply in this thread. It will stay open for your comments. Stay safe!