This FAQ is for Payroll in the U.S.
When you're setting up payroll, we will ask you for some tax information you've received from your state, the IRS and your employee(s). We need this information to accurately calculate employer and employee taxes.
If you haven't entered this information before running a payroll, don't worry— we will pop up some friendly notices letting you know what to do.
You'll notice we give you two options, to enter the tax rates or allowances yourself, or to ask us to use default amounts.
Using payroll defaults
We have set up defaults to protect our customers from underpaying on taxes, which means that we use maximum rates and minimum allowances. We give you details on the amounts we will use as defaults, so you can take a look before you decide.
You can edit your employer payroll tax rates by going to the Taxes tab, and selecting Tax Profile.
To edit employee information, go to the Employees tab and select the employee you need to edit the information for. Just remember any changes you make to employee rates only apply to future payrolls, and cannot be applied to payrolls run in the past, or payrolls approved in the past.
Important details on changing payroll tax rates
Note that editing your payroll tax rates will impact past and future payrolls. When you edit your SUTA (State Unemployment Tax) /SUI (State Unemployment Insurance), SUTA SC or SDI (State Disability Insurance) rates, they will be retroactively applied to all payrolls you've approved in the current year. However, the FUTA (Federal Unemployment Tax) exemption does not retroactively apply to past payrolls, so the changes will only appear on payrolls you run in the future.