In QuickBooks Desktop, federal, Social Security, Medicare, FUTA, and state withholding calculations generally come from payroll tax tables, so update the tables rather than editing a percentage. The main exception is an employer-specific state unemployment insurance (SUI) rate, which you enter from your state’s rate notice. First identify what changed; the right fix depends on whether you are correcting a tax table, SUI rate, employee tax setup, payroll item, or paycheck already processed.
First, identify which rate needs to change
| What looks wrong or changed | Where to start |
|---|---|
| Federal income-tax withholding | Install the latest payroll tax-table update, then check the employee’s tax information. |
| Social Security or Medicare | Install the latest update and check taxable wages, wage limits, and whether the pay item is taxable. |
| State income-tax withholding | Install the latest update, then verify the employee’s state withholding setup. |
| A new employer SUI rate notice | Enter the employer’s rate and effective period in the applicable state-tax setup. |
| A benefit, retirement contribution, garnishment, or other deduction or addition | Edit the payroll item or the employee-specific amount or percentage. |
| A FUTA year-end amount or another liability discrepancy | Investigate the liability and use an adjustment only when appropriate; do not edit the tax-table rate. |
| A completed paycheck has the wrong tax | Use the payroll service’s correction process. Changing today’s setup does not automatically recalculate an old paycheck. |
| QuickBooks says the tax table is outdated | Check the installed version and download the latest payroll update. |
QuickBooks Online Payroll is different: its tax tables update automatically. The steps below are for QuickBooks Desktop.
Update federal and state withholding tax tables
Withholding calculations depend on current tax tables and employee details—not a single editable percentage. QuickBooks Desktop payroll tax-table updates can include supported federal and state calculations, forms, and e-file or e-pay changes. An active QuickBooks Desktop Payroll subscription is required to download them.
- Open the company file in QuickBooks Desktop.
- Select Employees → Get Payroll Updates.
- Check the displayed version beside “You are using tax table version.” Select Payroll Update Info for additional details.
- Select Download Entire Update, then select Update.
- Wait for the completion message. Reopen or restart QuickBooks if prompted.
- Preview the next paycheck and review the tax calculation before using the updated setup for payroll.
To verify the installed update later, go to Employees → Get Payroll Updates → Payroll Update Info. As of August 18, 2026, Intuit lists U.S. Payroll Update 22613, released July 16, 2026. It includes new withholding tables, revised forms, and state unemployment-insurance-limit adjustments; the listed Georgia withholding-table change is effective July 1, 2026. Releases change, so check the version in QuickBooks rather than relying on a number in an older article. See Intuit’s tax-table update instructions and its latest payroll news and updates.
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Desktop Payroll Basic and Standard customers may also encounter Intuit’s transition to Enhanced Payroll, subject to renewal and customer consent. Check Intuit’s payroll product and renewal information for the terms that apply to your account.
Enter a new employer SUI rate
Ordinary tax-table updates do not enter your employer-specific SUI rate. Use the official notice from your state workforce or unemployment agency as the controlling source—not a prior-year percentage or a generic calculator. Before changing QuickBooks, check the state, employer account, rate, effective date or quarter, and any separate surcharge, assessment, or administrative component.
- In QuickBooks Desktop, select Employees → Employee Center.
- Double-click an affected employee and open Payroll Info.
- Select Taxes, then open the relevant state tab.
- If prompted to set up the state tax, select Setup and follow the wizard.
- Enter the SUI rate for each applicable quarter, using the dates and percentages on the agency notice. Save the employee record.
- Review other employees subject to the state so the rate and state-tax settings are consistent, then preview a paycheck and review payroll liabilities.
Screen labels and prompts can vary by Desktop year, Payroll Basic, Standard, Enhanced, or Assisted, state, and whether that state tax is already configured. The state where SUI is owed can differ from the state subject to withholding; verify both rather than assuming they are the same. State rules, wage bases, and employee status also affect whether SUI applies. Intuit’s instructions for setting up employee state payroll taxes describe the Desktop workflow and quarterly SUI entries.
Change a deduction or contribution percentage
A deduction, contribution, addition, or similar payroll item is not a statutory tax rate. If the change applies to the item generally, edit the item; if it applies to one employee only, change that employee’s payroll information instead.
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Change the payroll item for everyone who uses it
- Select Lists → Payroll Item List.
- Right-click the relevant item and select Edit Payroll Item.
- Follow the setup wizard to change the appropriate amount, percentage, or other item information, then select Finish.
Change an employee-specific amount or percentage
- Select Employees → Employee Center and open the employee.
- Go to Payroll Info and change the amount, percentage, or limit associated with the item.
Confirm whether a deduction is pre-tax or after-tax with the plan administrator or accountant before changing its tax-tracking type. Intuit explains the setup considerations in its guidance on voluntary deductions.
Check employee tax settings before changing a rate
An unexpected withholding amount may reflect employee or pay-item setup rather than a changed statutory rate. Review the employee’s Payroll Info → Taxes tab and confirm:
- Filing status and withholding-form information, including any exemptions.
- The state worked and the state subject to withholding; these relationships may differ from the state where SUI is owed.
- Additional state or local taxes that apply.
- Whether the pay item is taxable for the tax being reviewed.
- Year-to-date wages and applicable wage limits.
Do not change a tax percentage to compensate for incorrect employee information. Withholding can depend on the combination of tax tables, employee elections, taxable wages, and payroll-item treatment.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Correct a paycheck that has already been created
A setup change generally affects future calculations; it does not by itself fix a historical paycheck. The correction depends on the paycheck’s status and the payroll service.
- Not finalized: Correct the setup before creating or recalculating the paycheck, then review the result.
- Finalized, but taxes not yet paid or filed: Follow the payroll service’s correction workflow and retain an audit trail of what changed and why.
- Sent through Assisted Payroll: Do not edit a paycheck already sent to Intuit or independently adjust its payroll tax liability. Contact Intuit Payroll support for the correction process. Intuit’s guidance on overdue payroll liabilities warns Assisted Payroll users against those independent changes.
- Incorrect tax tracking on a payroll item: This is a different problem from an incorrect statutory rate. Intuit’s recommended approach generally involves stopping use of the incorrect item, creating a correctly configured replacement, determining the year-to-date difference, and correcting affected paychecks. See its year-to-date correction guidance.
When a liability adjustment is appropriate
Employees → Payroll Taxes and Liabilities → Adjust Payroll Liabilities is a correction tool for a specific liability discrepancy, not a general rate editor. For example, Intuit documents an adjustment for a FUTA credit-reduction amount. The workflow asks for details such as the date, effective date, company or employee, liability item, amount, memo, and affected accounts. See Intuit’s FUTA credit-reduction instructions.
An adjustment changes payroll liabilities and accounting records; it does not install a tax table or change the rate used to calculate paychecks. Document the reason, affected period, agency notice, and accountant approval where appropriate. Do not use an adjustment to force a paycheck to an arbitrary amount.
Troubleshoot when the new rate does not appear
- Check the tax table: Verify the installed version through Employees → Get Payroll Updates → Payroll Update Info. Confirm that the Desktop Payroll subscription is active.
- Check the effective date: A paycheck created before a new rate took effect may use the previous setup. For SUI, confirm the correct quarter or period was entered.
- Check employee coverage: Confirm state setup, state subject to withholding, and SUI settings for all affected employees—not just one record.
- Check the item: A customized payroll item or incorrect taxability setting can alter the calculation independently of statutory rates.
- Compare payroll records: Run Reports → Custom Reports → Transaction Detail to inspect payroll items, rates, and totals. Compare relevant paycheck dates, SUI taxable wages, and liability balances.
- Investigate mismatched liabilities: Run the Payroll Liability Balances report, confirm liabilities were paid through the proper workflow, review affected paycheck dates and tax items, and check for manual adjustments. Back up the company file and consult an accounting professional before deleting or recreating transactions.
QuickBooks’ supported state and local-tax combinations can have limitations, including cases involving multiple state unemployment or local withholding on one paycheck or filing. If your setup involves multiple states or local taxes, confirm that the combination is supported before changing it.
When to contact Intuit or a payroll professional
Get help before making further edits if tax filings have already been submitted, an Assisted Payroll paycheck has been sent, the state notice conflicts with the rate QuickBooks allows, historical payroll needs correction, multiple states or local taxes are involved, or liability accounts no longer reconcile. Keep the agency notice, affected paychecks, tax-table version, and relevant reports together so the correction can be reviewed against the right period.
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