SUI Tax rates are only paid by the employers (unless the State specifies that the workers need to contribute too) and this is not a part of your tax table, it the rate needs to be updated in the QuickBooks Payroll system. This article covers how to change SUI tax rates for basic, enhanced or standard payroll.
For a variety of reasons, the State changes these SUI rates now and then. The state has a right to change the rate, a surcharge or any other assessment items at any time, and this requires to be updated immediately in the QuickBooks software to accommodate correct calculations. As per the SUI requirements, It’s easy to change or update the QuickBooks software.
What is the SUI tax rate?
SUI stands for the State unemployment insurance rate. The SUI is an employer-funded tax that provides short-term benefits to those employees who lost or left their jobs for a variety of reasons. Read in detail about state unemployment taxes here.
Important Facts About SUI Tax Rates
- SUI tax rates are important to your business and issued by your state.
- SUI rate is not a part of the tax table update and critical that you type your current rate in QuickBooks Desktop.
- It paid only by the employer unless you are in a state that requires workers to contribute.
- The SUI wage base limit is updated by the tax table according to your state’s requirements and cannot be manually modified.
- Most states update their SUI rates at the beginning of the year, while others like New Jersey, Vermont, and Tennessee, update their rates in the third quarter of the year.
The majority of states attaches a surcharge or assessment to state unemployment. To ensure that you type the correct percentage rate for the SUI portion:
- Compare the breakdown of the rate on your notice with a sample copy for your state.
- If your state attaches an assessment or surcharge item, update the rate for that payroll item in QuickBooks.
Know more: Some specific details about how many workers and who are eligible for benefits are determined by individual states. while the FSUI(federal-state unemployment insurance) program operates under federal guidelines. both the federal and state payroll taxes provide the funding for the program. after the Federal Unemployment Tax Act, the federal taxes are called FUTA and states taxes mainly go by the abbreviation SUI. In most states, only employers pay SUI taxes and only employers pay FUTA tax. however, New Jersey, Alaska, and Pennsylvania require emp. to contribute to the SUI fund.
Steps to change SUI tax rates in QuickBooks Desktop
We have step by step details to change the SUI tax rate. If you need any type of help and support services, you may contact QuickBooks support. Dial +1-855-441-4417 to get in touch with our expert.
- First of all, select Lists and then click the Payroll Item List.
- After that, double-click the SUI tax item, which is typically named: [state abbreviation] – unemployment company.
- After that, click Next button and then click Next to Company tax rates for[year] and then type the correct rates for each quarter.
If your system date is between 7/1 and 1/1 you will also be capable to include the rate for the first quarter of the following year.
- After you enter the correct rates, you may get a message to Payroll Tax Rate Change Warning and then click Continue. Your SUI rates are updated.
- Click Next once and then click to clear any compensation items that are not subject to your SUI tax.
- At last, click Next and then click Finish.
If you want to modify SUI wage bases and sums reported for your workers, set up a Payroll report to regulate these numbers. See the steps below:
- First of all, click reports and then click employees and payroll and then payroll item detail.
- After that, set the date to see each specific quarter.
- Click Customize Report button and choose the following:
- Source Name
- Payroll Item
- Wage Base
- Click the Filters, Then choose Payroll Item from the list.
- Click below to the payroll item and choose your state unemployment item.
- Look at the total wage bases column for the SUI and multiply it by your present rate.
- Match results with sums calculated.
If you have workers who are over or under collected for SUI, then you can set up rectifying positive or negative liability adjustment for the influenced worker and influenced quarter.
Suggested Read: What is State Unemployment Taxes (SUTA) & Who Pays them?
How do you find out the SUI rate?
- If you don’t know your rate, we’ll set it for now to the highest, most conservative rate (6.74%).
- You can See the latest tax rate notice (Form UC-216) sent by the Department of Labor
- We will remind you later what you need to find out your rate and change it.
- If you are a new employer, they will set your state unemployment insurance (SUI) rate to the standard new employer rate (2.70%) set by the Alabama Department of Labor.
- See your Quarterly Contribution and Wage Report (Form UC-CR4
Steps to Set up an SUI Payroll Report
- Go to the REPORTS and choose Employees and payroll to modify SUI.
- Select the payroll item detail.
- On the accounts, the detail page sets the dates to check a particular quarter.
- Choose the customize report tab, click on the Date, source name, payroll item, wage base and amount.
- Go to the Filters under Filter option and payroll item, and click on payroll item.
- Choose the state unemployment option, and review the total wage base column for SUI, and multiply it by the present SUI rate.
- Now, match the results to the sum calculated.
Hope, you will understand the concept of SUI tax rates and the different steps to change SUI for a basic, enhanced or standard payroll. But after reading the above steps if you still need further technical support for your QuickBooks or any other issue, you can directly call us at +1-855-441-4417 and directly discuss your issues with our Intuit Certified ProAdvisor and get quick solution.