What is a tax surcharge?
The setup asked me if my employee was subject to the Co tax surcharge-what is that?
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Theresa76
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01/05/10 10:31pm PST
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Hi and thanks for your post!
The CO Tax Surcharge is an additional amount that is added to your CO Unemployment taxes. If you pay unemployment taxes in Colorado, then you most likely must also pay the surcharge. Many payroll companies include the surcharge amount in the same calculation as the CO State Unemployment tax calculation, but QuickBooks separates the amounts. The CO Surcharge amount is hard coded into the tax tables in QuickBooks, so all you need to do is be sure that the percentage you enter in your Payroll Item List for CO-Unemployment does not include the surcharge amount (since it's calculated separately).
Hope this helps!
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