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April 17, 2024
Question

Single paycheck shows income is FUTA eligible, when it is not. How to correct?

  • April 17, 2024
  • 1 reply
  • 0 views

We are a non-profit and therefore do not pay Unemployment. After quarter 1, I ran the Washington Quarterly State Unemployment Statement in File Forms of the Payroll Center to ensure that all is showing correctly. Unfortunately, I have a single Washington State employee who's first paycheck of the year is showing on this report. How do I correct it so it won't show on this report?

 

 

Thanks!

1 reply

April 17, 2024

I appreciate the screenshot you've added, @KSchadel. I'm here to ensure you correct this so this will not show on your report. 

 

Based on the picture you've shared, it appears that you've ensured that the SUI checkbox in the State section is unticked. Let's go ahead and proceed in adjusting your payroll liability to correct the year-to-date payroll information that shows in your report.

 

Adjustments are there to make amendments when a mistake appears in a paycheck. Doing this will ensure that the error won't show in the report. I'll walk you through the process of correcting this paycheck.

 

Let's run the Payroll detail review report since it contains specific information about their tax liabilities. To open this, here's how:

 

  1. Go to the Reports menu.
  2. Select the Employees & Payroll.
  3. Click the dropdown, then choose Payroll Detail Review.
  4. On the From and To date section, select the Check Date found in the paycheck you'll need to correct.
  5. Locate and remember the amount reflected in the Wage Base columns from the Unemployment Company row.

 

After that, we can adjust this so it won't appear on the report. Here's how:

 

  1. Toggle to the Employees menu.
  2. Click Payroll Taxes and Liabilities.
  3. Select Adjust Payroll Liabilities.
  4. In the Date and Effective Date option, edit it to the check date you've entered in the paycheck.
  5. Select Employee in the Adjustment is for, and then choose the it's name from the dropdown.
  6. From the Taxes and Liabilities table, choose the Unemployment Company in the Item name column. 
  7. Add the appropriate amount from the Amount, Wage Base, and Income Subject to Tax. 
  8. Click the Accounts Affected button, then choose your preference.
  9. Hit OK to save.

 

Go back to the report and then refresh it. You'll see that the amount Wage Base and the Amount will be 0.

 

For reference, check out this article: Adjust payroll liabilities in QuickBooks Desktop Payroll.

 

You can read this article for guidance in correcting wages, deductions, and contributions: Fix a payroll item with incorrect tax tracking type in QuickBooks Desktop Payroll.

 

It's my priority to ensure you're paycheck and report details show the correct information. If you have further questions about this, feel free to reply or post in this forum. We'll be glad to assist you.

KSchadelAuthor
April 18, 2024

This is SO helpful, but I do have a few questions about steps 7 & 8 of the second portion. And I feel silly asking, but I would love more insight and to be absolutely sure! 

 

7. What Amount do I use? Is this the amount in the Company Summary portion of the paycheck? (see attachment) 

8. Accounts Affected: Would this be the liability account in the Payroll Item? (see attachment)

April 18, 2024

I'm glad to know that the steps provided by my colleague were able to assess your needs in correcting your payroll liability, KSchadel.

 

Yet, I'd like to request further information about the tax calculation. Since your screenshot shows zero for WA unemployment, it indicates that no amount has accrued from the taxes. Let's hold off on making any adjustments until we have reviewed the calculation of your taxes.

 

Could you please provide a screenshot of the affected paycheck detail with the amount of $1,410.93 so we can double-check the calculation and pinpoint the exact cause of the issue?

 

We'll monitor this thread and return to you shortly. Have a good one ahead.