Check Your Payroll Tax Rates in QuickBooks Desktop and QuickBooks Online

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It is a good time to review your QuickBooks Desktop payroll tax rates to verify that all limits and percentages are correct. Updating the state unemployment rate is sometimes missed when updating for the new year.

From the QuickBooks Desktop menu at the top, click Employees > Get Payroll Updates > Update.  This will run the most current payroll updates. Then verify the payroll list.

From the QuickBooks Desktop menu at the top, click Lists > Payroll Item List.

The following are the limits that should be on the Payroll Item List for 2019:

  • Social Security  $132,900
  • Federal Unemployment $7,000
  • Illinois Unemployment  $12,960

Make sure that your company’s Illinois Unemployment Tax rate is correct (especially if it has changed since last year). You can check you current tax rate on your MyTaxIllinois account.

If the rate you have in QuickBooks is incorrect, click on IL-Unemployment Company from the bottom left corner, go to Edit Payroll Item, and continue clicking Next until you are get to “Update company tax rates for 2019”, then input the correct rate, and click Next and Finish.

If your company file is in QuickBooks Online, and you run your own payroll (you have Self Service Payroll), you should also check your state unemployment tax rate every year.

In QuickBooks Online click on the Gear >  Payroll Settings > State Taxes > IL State Unemployment Insurance (SUI) Set Up > Change or Add New Rate.

If you have any questions about payroll settings in QuickBooks, please call Angie Uthe at 847-695-1775.

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