How to change payroll tax rate in QuickBooks ?
As creativity has paved its way in this new technological era new businesses have boomed a lot. Nowadays the size of the business does not matter but innovative ideas are what is required most to carry on the business. It is not an easy task to manage all the financial transactions of one’s business but with the right guidance and tools, one can easily manage one independent business. Now if you’re looking for financial business accounting solutions then QuickBooks should be your first pick. This accounting software was developed by Intuit Software developing company to solve all business-related problems.
Running a smooth business is a tedious task, but with the amazing and diligent features of QuickBooks one can easily manage every business transaction. QuickBooks consist of all the products that one must require for their accounting needs. There are various versions of QuickBooks according to the business owner and the size of the business.
Now if you’re running a business then you definitely must have numerous employees working with you. You need to pay their salary and keep a proper check of every transaction you make.
So now arises a question that what payroll and do you require to file a tax for payroll?
What are payroll and payroll tax?
Now there are three ways that you can define a payroll –
- The number of employees with their details or information that you’re going to pay.
- The amount of salary that you’re going to pay to each employee at the end of each period.
- It is also the procedure to calculate and distribute the salary, wages, and taxes.
With this clarification of what’s a payroll, let’s move onto payroll tax.
It is a percentage of tax that is withheld from the employee’s pay by an employer who pays it to the government on behalf of the employee. The tax is composed of salaries, wages, and tips given to the employees during the period. Federal payroll tax is directly deducted from the employee’s salary and paid to the Internal Revenue Service.
QuickBooks and payroll taxes
Well, QuickBooks got you covered in paying and filing taxes quite easily. One can easily pay taxes and other liabilities using QuickBooks Desktop. For this, you must know your tax schedule because every employer has a different payroll tax schedule according to the size of the payroll. With this basic knowledge, you will be able to pay your payroll taxes on time. As a QuickBooks subscriber, you need to update your state unemployment rates (SUI) yourselves. Although you will not find any updates about the rates in the QuickBooks payroll tax table because every employer is assigned a unique rate. Employers who are located within the states who have state disability insurance (SDI) should also Update their SDI rates themselves. QuickBooks Services lets you view the tax table for the calculation of payroll taxes.
How to change the payroll tax rate?
Well, the first thing is your SUI tax rates will be different according to the payroll subscription that you’re using. The following steps are for QuickBooks online payroll:
- Go to the Gear icon at the top and click on Payroll Settings.
- Now go to Taxes and choose the State Tax or State Taxes.
- In the State Unemployment Insurance setup section,
- Simply feed the new rate and the Effective date provided from your state.
- Then click on OK.
This shall do for you, but if you’re using Intuit Online Payroll then you need to follow the following steps:
- Go to Setup and then click on Tax Setup.
- Then select State Tax Information and find the tax rate you need to change.
- Now click on Change or Add New Rate.
- Then enter the new rate and the Effective Date provided by your state in the notice.
- Select Ok.
If by any chance you are unable to see this option in your QuickBooks then you might have subscribed for Intuit Full Service Payroll or QuickBooks Online Payroll Service.
QuickBooks can handle all the financial transactions of your business. It can monitor and manage all your incomes and expenses. You can do your billing and invoices related transactions without any stress. You can avail yourself to tracking your various and expenses. Making reports becomes handy and efficient. Every accounting transactions such as accounts receivable, accounts payable, bank reconciliation, and general ledger are its core capabilities.
These are also the backbone of the business with many other important tasks to be taken care of. You can easily track your employee’s payroll and get access to printing many checks and deposit slips. Collecting payments and the creation of various invoices are done with ease. You can keep an up to date track of your sales, deliveries, and orders. As the list is endless QuickBooks is the best choice for any financial accounting agenda.