Update state unemployment insurance rates in Square Payroll
About unemployment insurance rates
State unemployment insurance (SUI) rates are assigned to businesses by their state tax agencies. Rates are determined by many different factors such as how many former employees receive unemployment benefits and the business industry. New employers are generally assigned the state’s new business rate.
At the end of the year, state agencies send out rate notices with updated SUI rates for the upcoming year, while some states, such as New Jersey, Vermont, and Tennessee, update their rates in the third quarter. This information may need to be updated in Square Payroll.
Before you begin
To learn more about your state requirements, review Square Payroll state tax resources.
Square Payroll assists in automatically updating SUI tax rates for businesses in:
California
New York
Pennsylvania
Virginia
Washington
Wisconsin
Although Square Payroll assists in verifying your tax rates each quarter if you provide a valid account number, you are responsible for ensuring these rates are accurately reflected in Tax Info in your Square Dashboard.
Update the SUI rate in Square Payroll
Sign in to your Square Dashboard and select Staff & Payroll > Payroll > Tax info.
Scroll down to the state tax account and select the SUI rate needing an update.
Enter the rate for the current quarter or a future date by selecting Add Future Rate.
Enter the new rate as a percentage. For example, if the state notice refers to a rate of .0325, enter 3.25%.
If you process payroll in different states or multiple tax jurisdictions, follow the same steps to update your SUI rate for each state in which you run your business.
Select Save.