SUI rate: Resolving SUI payments after you correct the rate

If you update an incorrect State Unemployment Insurance (SUI) rate, our payroll service automatically recalculates any payments you've made at the incorrect rate. If you increase the rate, you'll owe underpayments. If you decrease the rate, you'll have overpayments and will be owed a credit. You must then follow these steps to resolve the adjusted payments with the state agency.

You must resolve SUI overpayments and underpayments for past quarters. Otherwise, you won’t be able to pay Federal Unemployment Taxes (FUTA) or file Form 940.

For the current quarter, adjustments to SUI payments are applied to your remaining payrolls, so wait until the end of the quarter to determine if correcting your SUI rate has resulted in an overpayment or underpayment for the quarter.

  1. Correct the SUI rate and include the effective date of the updated rate. The effective date is usually January 1st (for example, 1/01/2012), but in some cases it may be at the start of a subsequent quarter (for example, 4/01/2012, 7/01/2012, or 10/01/2012).
  2. To review the adjusted payments that result from the SUI rate correction:

    Go here.
    (Or choose Taxes & Forms > Pay Taxes.)

  3. If you increased the SUI rate:

    1. Review the list of SUI payments on the Pay Taxes page and make a note to yourself of any underpayments you still owe for closed quarters since the effective date of the SUI rate you just corrected. The amounts appear on the Pay Taxes page as positive payments due.

    2. For the amounts you still owe, mail the payments directly to the agency. Or, if available, pay online at the agency's website (you'll need to contact the agency to confirm how to pay).

      For California, you can make the payments through our service.

    3. For payments made directly to the agency (by mail or online through the agency's website), record the SUI payment in our payroll service after you make the payment.
  4. If you decreased the SUI rate:
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    1. Go here.
      (Or choose Taxes & Forms > Pay Taxes.)
    2. Review the list of SUI payments on the Pay Taxes page. An overpayment appears on the Pay Taxes page as a negative amount.
    3. For the overpayment, click Resolve Overpayment.
    4. Click what you want to do with the overpayment. Depending on your state, you can get a refund or apply the overpayment to the next tax period.
    5. Click Save.
    6. Review the resolved overpayment. The resolved overpayment appears as a negative entry in the Tax Payments report.
    7. Contact your state's tax agency to get a refund or apply the overpayment to the next tax period.
    GARI

    Contact us to resolve the overpayment.

You may also like

unemployment;unemploy;state;SUI; state unemployment tax; changing SUI rate; updating SUI rate; correcting SUI rate; corrections

 

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