Company Payroll Tax Settings
Background
You will need to enter payroll tax information specific to your company, including your employer tax identification (aka, employer account) numbers for each type of federal, state, and applicable local taxes.
In this article:
- Adding company payroll tax numbers (tax identification numbers)
- How to add company payroll tax exemptions
- Managing company payroll tax settings
See our Company Tax Settings Checklist to gather the information you’ll need to enter. For specific information and resources for income tax and unemployment tax in your state, see more payroll information for employers.
Adding company payroll tax numbers
Tax identification numbers
Enter the tax account number for each type of tax, both federal and state (and local, if applicable). The account number identifies your company when sending tax payments. You can find this number in a letter or coupon booklet from your tax agency, or check with your former payroll provider.
If you don’t have your account number, check the box beside “I don’t have one yet.” Check this box only if your company recently applied as a new filer for this tax, and you don’t have an account number yet. Otherwise, leave it blank. Note: you can still run payrolls even if you don’t have these account numbers. For more information, see What If I Don’t Have All My Tax Account Numbers?
How to add company payroll tax exemptions
Most businesses must pay federal unemployment taxes (FUTA) and state unemployment taxes (SUTA) taxes.
501(c)(3) nonprofit organizations are exempt from FUTA and SUTA in most states (see Do Nonprofits Pay Payroll Taxes?). If your business is exempt from federal or state taxes, you can indicate which taxes your business is not required to pay. For more details, see Is My Business Exempt from FUTA and SUTA?
Payroll > Payroll Settings > Tax Exemptions: To update your company federal and state tax exemption settings.
- Click the “Add {tax} Exemption Status” button.
- Click the radio button for the status (exempt/nonexempt) you want.
- Select an “Effective Date”
- Click “Save”
Advanced tax settings
944 Filer: Check this box only if your business is a small employer with a federal tax liability of less than $1000 per year and received notice from the IRS that you must file an annual 944 form instead of the quarterly 941 form. For more information, see What Is a 944 Filer?
Managing company payroll tax settings
After you have completed the initial wizard, you can manage your tax settings under the Settings tab:
- Payroll > Payroll Settings > State Unemployment Rates: You should receive an updated rate notice from the state each year. For more details, see Updating Your State Unemployment (SUTA) Rate.
- Payroll > Payroll Settings > State Tax Withholdings: If you have employees who work in another state, you may need to indicate whether to withhold state income tax. For more details, see Multi-State Income Tax Withholding.
- Payroll > Payroll Settings > Tax Exemptions: To update your company’s federal and state tax exemption settings.
- Payroll > Payroll Settings > Tax Info per Work Location: This link will only appear if your business has a location in Ohio, to set up JEDD tax. For more details, see About Ohio JEDD Tax Settings.
- Payroll > Payroll Settings > Tax Location: Update your business location’s local tax area.
- Payroll > Payroll Settings > Tax Settings: Update your Federal and State tax account ID numbers here, and 941/944 filing status.
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