QuickBooks Is Incorrectly Calculating Unemployment
QuickBooks incorrectly deducts unemployment from an employee's paycheck when you set up the state taxes or payroll items incorrectly. You also have to have an active Intuit payroll subscription with the latest updates installed for QuickBooks 2013 for Windows. If you are using an outdated tax table, a tax table update can immediately correct the problem. Provided the employee hasn't maxed out the available State Unemployment Insurance, you can set QuickBooks up to correctly calculate unemployment.
Launch QuickBooks, click the "Help" menu and select "Update QuickBooks."
Select the "Overview" tab and click "Update Now."
Select all of the available updates, and then click "Get Updates." Click "Close" when the "Update Complete" message appears.
Click the "File" menu and select "Exit." Relaunch QuickBooks and select "Yes" to install updates.
Click the "Employees" menu and select "Get Payroll Updates."
Select "Download Entire Payroll Update" if you have never updated your tax tables. Otherwise, select "Download Only Changes and Additions to Currently Installed Payroll Files."
Click "Update." A confirmation message appears after the updates have been installed.
Click "Employee Center" and double-click the employee's name. Select "Payroll Info" from the "Change Tabs" drop-down menu. Click the "Taxes" button, select the "Stats" tab, verify that all the information is correct, and then click "OK."
Click "Lists" and select "Payroll Items List." Double-click "State Unemployment" and select "Next" twice. Verify that the State Unemployment Insurance rate is correct; modify it, if necessary. Click "Next" twice, and then click "Finish."
Click "Reports," select "Employees and Payroll," and then click "Payroll Summary Report." Double-check the employee's SUI, and then double-click the amount accrued. Check the Wage Base column to see if the employee has reached the limit. If so, QuickBooks does not calculate the SUI for the employee.
Click "Lists," and then "Payroll Item List." Double-click "Deductions," followed by "Additions," and then "Company Contribution." Click "Next" to reach the Tax Tracking Type window. Mark any payroll items with incorrect tax tracking as "Inactive."
Click "Payroll Item" and select "New." Select the correct payroll item from the list, and then click "Next." Enter the appropriate information into the available fields, and then click "Finish."
Information in this article applies to QuickBooks 2013 Pro and Premier for Windows. It may vary slightly or significantly with other versions or products.