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My LLC hired three months ago a part-time employee, and this is the situation:

  • Pay Rate: $2,000.00 / month
  • Pay Schedule: Twice a Month

We're using Quickbooks to automatically send him the paychecks every 15 days. We could use it to pay the payroll taxes too, but our accountant decided to do it by himself.


CA PIT / SDI tax question:

I just discovered that our accountant is paying really different amounts of taxes on this payroll. Let me show you an example, this is the amount of taxes suggested by Quickbooks:

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And this is the DE 88ALL paid to the EDD by our accountant. Please note that he paid two months at once because we were late.

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Why are we paying the UI and ETT taxes, who's right, Quickbooks or our accountant?


Federal taxes question:

Quickbooks is constantly reminding us after every paycheck to pay these federal taxes:

enter image description here

However, our accountant told us to hold on, because this kind of payroll taxes need to be paid at the end of every quarter. Why Quickbooks is constantly reminding us to pay them now?

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ETT maximum is $7 per employee per year (see here), so it appears that the accountant is right. I'm assuming the employee was hired sometime in the 3rd quarter. Check your payment history to verify. The tax is 0.1% on the first $7K of the salary paid.

UI rate is 3.4% on the first $7K of the salary paid, making it $238 a year. Again, assuming the employee was hired mid-year, the accountant seems to be correct.

I'm guessing your QB is not properly configured for State withholding.

About the Federal taxes, see the IRS publication 15 (known as Circular E). Note that the forms are filed every quarter, but the money deposits depend on your amounts. In your case you're probably supposed to be depositing monthly. Verify with your accountant that you're talking about the same things.

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  • thanks @littleadv , I'm glad our accountant took care about the taxes. But now we basically need to set-up QB for the State withholding..because at this point, the paycheck amount that QB suggest us is wrong, am I right?
    – Luke
    Jan 2 '15 at 9:41
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    @Luke your accountant can probably do that, if not - there are tons of people with Intuit's Advisor credentials who'd be happy to do that for you.
    – littleadv
    Jan 2 '15 at 10:35

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