QB Issue Resolution:

Having your FUTA tax liability to be corrected is my priority so let’s get this taken care of.


You can create a negative liability adjustment to offset the Federal Unemployment tax liability.


Here’s how:

  1. Click on Employees at the top.
  2. Select on Payroll Taxes and Liabilities.
  3. Click on Adjust Payroll Liabilities.
  4. Select the correct Effective Date.
  5. In the Taxes and Liabilities section, click the Payroll Item column and select the correct payroll item.
  6. Enter the negative amount of the adjustment.
  7. Click Accounts Affected and choose Do not affect accounts.
  8. If you have additional employees, click Next Adjustment and repeat the steps for each affected employee.

To know more about the process, please check out this article: Adjust payroll liabilities.


Resolution for Issue 'Employee Taxes Incorrect Selection – Federal Unemployment Tax (Company Paid)' available: Yes (Solved).
Source: Intuit Community forum.

Employee Taxes Incorrect Selection – Federal Unemployment Tax (Company Paid): this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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