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lisa-h-americane
Level 1

How do I setup a pay type in Quickbooks Online that records Holiday and PTO hours paid to an employee but is not included in worked hours reported to Washington L&I?

The codes provided by QB tax the Holiday and PTO hours and is deducting too much Worker's Comp tax on the employee as well as the employer. Any other Washington employers have this issue?
1 Comment 1
ChristieAnn
QuickBooks Team

How do I setup a pay type in Quickbooks Online that records Holiday and PTO hours paid to an employee but is not included in worked hours reported to Washington L&I?

Hello there, lisa.

 

Let me provide information on how employee's holiday and PTO work in QuickBooks Online. I'll also ensure you're able to smoothly manage the WA workers' compensation.

 

Please know that setting up a pay type that records Holiday and PTO hours paid to an employee but is not included in worked hours reported to Washington L&I is currently unavailable. This is because adding those types will calculate related to workers' comp. Then, the rate or calculation of this is based on what you get from the WA Department of Labor & Industries, or on their website

 

Furthermore, QuickBooks follows WA L&I regulations and calculates workers’ comp at 160 hours per month. Workers’ comp is calculated on the employee’s first paycheck of each month. You can refer to this article to see extra details: Set up and manage Washington (WA) workers' compensation.

 

On the other hand, you can consider consulting an accountant to ask for additional help in properly recording the Holiday and PTO of an employee on your end. This is done to ensure your taxes are reported correctly. If you don't have an accountant, you can find one through this website: Find-a-ProAdvisor website.

 

In case you need steps on how to run different reports that show about employee info, wages, taxes, and deductions, you can read this article: Run payroll reports.

 

Don't hesitate to comment down below if you have other concerns about managing employees' data in QBO. I'll be around to assist you always, lisa. Have a great day ahead.

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