QB desktop not calculating FUTA correctly for corporate officer exempt for SUI

Hi there, @RLSB.

I can see that your QBDT isn't calculating FUTA correctly for a corporate officer exempt from SUI, and I'm here to help you fix this.

This can be due to the payroll setup for the employee or specific tax exemptions not being applied correctly. First, let's ensure your employee's profile is set up correctly. Here's how:

1. Navigate Employees and select Payroll Center.
2. Locate the employee's name and click the Edit icon.
3. Click the Payroll Info tab and select Taxes.
4. Check the box next to Federal Unemployment (FUTA) (Company Paid) and click OK.

Then, let's proceed to create a liability adjustment to add the credit reduction amount to the Federal 940 tax due:

1. Head to Employees, then Payroll Taxes and Liabilities. 
2. Choose Adjust Payroll Liabilities.
3. In the Date and Effective Date fields, pick the last paycheck date of the affected year.
4. In the Adjustment is for: section, select Company.
5. Under the Item Name column, choose Federal Unemployment.
6. In the Amount column, enter the credit reduction amount. 
7. Click Accounts Affected, then OK.
8. Select Affect liability and expense accounts for the transaction to reflect in the liability and expense accounts.
9. Click OK to save changes.

For more information, I recommend reading this article: Understanding Federal Unemployment Tax Act (FUTA) Credit Reduction States.

If the problem persists, I recommend contacting our QuickBooks Desktop Payroll support so they can correct your payroll. This will help ensure you have accurate amounts on the 940 form.

Explore these insightful articles that can enhance your knowledge and skills in the future:

• Understand how your payroll taxes are calculated in QBDT Payroll.
• View your previously filed tax forms and payments in QBDT Payroll.

I'm excited to answer any questions you have about your payroll process in QBDT. Reply anytime, and I'll be here to assist you.