DE Paid Leave - How to set up when using private insurance plan

Hi there, @sjmanos.

Thank you for contacting us about setting up paid leave with your private insurance plan in QuickBooks Online. I would like to provide some information on how Delaware Paid Leave operates, particularly regarding its implementation and the benefits for employees.

Since you are using a private insurance plan, Delaware Paid Leave only applies to employers in Delaware without a private plan. Therefore, I recommend exempting your employees from Delaware Paid Leave since you are already covered by private insurance.

Here are the steps on how to create an exemption:

1. Navigate to Payroll, then select Employees.
2. Choose your employee.
3. In the Tax withholding, select Edit.
4. From State withholding, below Delaware Paid Family and Medical Leave, select Employee is exempt from this contribution.
5. Hit Save.

Additionally, let me include a resource for setting up and managing payroll items for your insurance benefit plan in QuickBooks Online Payroll: Set up and Manage Payroll items for the insurance benefits plan.

For future reference, after you set up and manage payroll, if you want to add deductions that your employee needs to pay each payday in QuickBooks Online Payroll, here's a link: Set up, change, or delete employee-paid payroll deductions.

Should you have further questions regarding Delaware Paid Leave? Don't hesitate to click the Reply button below. We'll route back to you.

Thank you so much for these resources. I believe that I have completed all of the tasks that you outlined, but I still received an email from Intuit that my payroll processing will be temporarily blocked, if not completed by tomorrow, 12/19/24.

Might someone be able to help me determine if my setup is correct. I have exempted all of my active employees in each of their records. What steps, if any, am I missing?

Thank you.

Hi there, @sjmanos.

I can share details and guidelines to stop you from receiving prompt emails from QuickBooks. 

Delaware employers with ten or more employees must start calculating the new taxes on paychecks dated January 1, 2025, and after. Contributions vary based on employer size. Employers with nine or fewer employees can tag them exempt in QuickBooks unless they voluntarily opt into a policy.

Employers are advised to set up their plans in QuickBooks by December 19, 2024, and assign them to their DE employees. Otherwise, employers will be temporarily blocked from running payroll for DE employees. However, the block will be removed automatically when the policy is assigned.

With that, you can follow the steps below to create a policy and assign them to your DE employees:

1. Go to the Gear icon and select Payroll Settings.
2. Edit your Delaware Tax, and choose Start under Delaware Paid Family and Medical Leave Tax (PFML).
3. Select your Delaware full-time employee count, and select Define Rates.
4. Enter a Policy Name and Effective Date.
5. Enter the percentages for you and your employees.
6. Select Save, Save, and Done.

Afterward, proceed with the steps above to add the policy to your employees:

1. Go to the Payroll tab and select Employees.
2. Select your employee and click Edit from the Tax withholding section.
3. From State withholding, select + Assign policy and select Policy Name we have set up above.
4. Select Save and Done. Then, repeat steps 2-4 for all other Delaware employees.

You can also check out this article to guide you about editing, deleting, or exempting employees from Delaware Paid Family and Medical Leave: Set up Delaware Paid Family and Medical Leave.

Once ready, you can run payroll for your employees depending on your payroll plan and schedule. 

Whenever you need additional assistance with adding payroll plans, @sjmanos, you're always welcome to post to the Community.  I'm just a click away to help you. Take care!