How to change the state unemployment rate in QuickBooks |
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Why is it important? It is important to change the state unemployment rate in QuickBooks in early January so that QuickBooks can accrue the proper amount of state unemployment tax. If this is not changed the accrual will be inaccurate causing your profit and loss statement to be inaccurate. Also you may end up paying an incorrect amount to the taxing agency and no one wants to do that. The following is a step-by-step process on how to change your state unemployment rate In QuickBooks.
Step one:
Get the rate for next year. This can be found at the bottom of your 20xx Contribution Rate Determination sent to you in late November or early December. You should first do an analysis to see if you should pay the voluntary amount. Do not automatically pay this! Rarely is it beneficial to our clients. In this case the rate is .6% for 2005 and the voluntary amount should not be paid because it would not be beneficial. If you have any questions concerning whether you should pay, contact us we can help.
Step 2:
Once you have the rate it is time to put it into QuickBooks, remember do not do this until January prior to your first payroll for the new year. You will need to get to your payroll items. Depending on your version this may be in the navigator, home page or you can get to it through the menus.
Then Double Click on OH Unemployment Co.
This will open up the edit wizard, click next all the way to Company Rates and make sure that the rate is correct for 20xx. If the rate is not what is should be, change it and make sure that you use the % sign. When complete next all the way until you can click finish. You now should have an updated state unemployment item and be ready to go for the year.
If you have any questions regarding this please fell free to call Dave Luderman at (419) 782-7166 or email him . He will be glad to walk you through this process. |
