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jeffyurk
January 3, 2025
Question

Quickbooks Online Payroll / Minnesota Unemployment Tax / New Assessment

  • January 3, 2025
  • 1 reply
  • 0 views

Greetings, 

 

I am a small business employer and have 1 employee in the state of Minnesota. I received my rate determination letter for 2025 from Minnesota Unemployment. It has a new assessment called 'Additional Assessment' which my Payroll system is not setup for. What to do? Note, the new assessment is 5% of my UI tax due. 

 

Thanks for your help. 

1 reply

G
GianSeth_A
January 3, 2025

We prioritize making it easy for you to update your Unemployment Insurance (UI), jeffyurk.

 

When your SUI rate changes, It's best to update it in your payroll system to keep your tax liability accurate. This is essential for having correct financial records and preventing any penalties. Let me guide you how:

 

  1. Go to the Gear icon/ Settings.
  2. Select Payroll settings.
  3. Next to the state you want to update, click the Edit icon.
  4. In the Unemployment Insurance (UI) section, click Edit.
  5. Hit Continue if you see a prompt.
  6. Enter the rate and its effective date.
  7. If you have a surcharge or assessment tax rate, also put it. Then, enter the rate and its effective date.
  8. Hit Save.

 

States send out updated SUI rate notices typically toward the end of the year, or at the beginning of the new year. Once you have your new SUI rate, here's how you can update it.

 

  1. Navigate to Settings ⚙, then select Payroll settings.
  2. Next to the state you want to update, select Edit ✎.
  3. In the State Unemployment Insurance (SUI) Setup section, select Change or add new rate.
  4. For further details, you can check this article for guidance on how to add or modify your rate: Update your State Unemployment Insurance rate.

 

Furthermore, I added an article that will assist you in remaining updated on tax forms, withholdings, unemployment, and various agency-related information: Payroll Tax Compliance Links.

 

If you're looking to elevate your payroll processing, consider diving to Explore QuickBooks Payroll. It has a feature that suits with your needs and has a lot of options that can truly transform your business operations.

 

Accurate records of (UI) and Rates are crucial for running a smooth business, and I’m here to help you succeed. If you have any questions along the way, please don’t hesitate to reach out in the comments. I’m dedicated in assisting you, wishing you all the best and more power to your business.

J
jeffyurkAuthor
January 3, 2025

Hi, thanks for replying. Unfortunately my problem still exists. There is no field to enter 'Additional Assessment'. Under 'Unemployment Insurance' I have 3 rates; Federal Loan Interest Assessment Rate, the UI rate, and Workforce Development Fee Rate. When I click on Edit next to the UI rate (step 6) all it allows me to do is enter the new rate and date. But in step 7 you say 'If you have a surcharge or assessment tax rate, also put it. Then, enter the rate and its effective date.' but again there is no field to put it. 

J
Jovelyn_M1
January 3, 2025

Allow me to give additional information regarding the new 5% Minnesota Unemployment Insurance (MN UI) additional assessment in its payroll tax settings, @jeffyurk.

 

QuickBooks Online Payroll currently does not include the new 5% Minnesota Unemployment Insurance (MN UI) additional assessment. Our payroll team is monitoring updates from the Minnesota Department of Employment and Economic Development (DEED) to implement these changes promptly. However, we do not have a specific date for when the new option will be implemented, but most states' effective date is January 1st, 2025.

 

In the meantime, if you receive a notice from your state, please consider sending it to us. This will allow us to better assist you in updating your tax rates in QuickBooks Online.

 

To initiate this process, please write your Federal Employer Identification Number (EIN) by hand on the first page of your tax notice. If you have multiple notices of discrepancy, please send each one separately.

 

If you are using our payroll services, follow these steps to upload your notice:

 

  1. Go to Taxes and select Payroll Tax.
  2. Click on Resources.
  3. Hit Tax Notice.
  4. Follow the instructions displayed on the screen to submit your notice.

 

Upon receiving your tax notice, we will send an email confirmation to the Principal Officer and Primary Admin on file, including a case number and additional details.

 

After our review, a tax specialist will email you with the resolution, actions taken on your behalf, and any necessary next steps. The Tax Notice team will acknowledge receipt via email within 3-5 business days. If the Principal Officer or Primary Admin does not receive this email, please contact us to confirm receipt of your notice.

 

Additionally, I'm adding this resource to help you how you can wrap up this year’s payroll and prepare for the next with QuickBooks Online Payroll Core, Premium, or Elite: Year-end checklist for QuickBooks Online Payroll.

 

We're committed to supporting you in any way we can. If you have any further questions about processing paychecks or any other inquiries, please feel free to reach out. Our team is always here to assist you!

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