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Level 2

Paid Leave Oregon Default 1% - Need to Change for Equivalent Plan

Oregon's rate for Paid Leave Oregon is set at 1%.  We have been approved to use an "equivalent plan" and our rate is not 1%.  I do not see how I can change this 1% to anything else.  I am now assuming that I need to just build a Payroll Item from scratch and name it something similar so that I can use my own premium amount instead of the 1%.  Anyone else run into this?

6 Comments 6

Paid Leave Oregon Default 1% - Need to Change for Equivalent Plan

Hi there, Debrah2.


I'm here to help you handle the Paid Leave in Oregon on your QuickBooks Desktop (QBDT) account.


When using the equivalent plan, you can pay all or part of the employee portions of Paid Leave Oregon as a benefit to your employee. This is because these company-paid contributions are considered employee wages and should be treated as an employee-taxable fringe benefit, except from Paid Leave Oregon wages. 


That said, you'll have to add a fringe benefit pay type to your employee profile and add it to their paycheck.


To add fringe benefit, here's how:


  1. Go to the Lists on your QBDT account and select Payroll Item List.
  2. Choose Payroll Item and click New.
  3. Select Custom Setup.
  4. Click Addition, then Next.
  5. Enter a name for this item and click Next.
  6. Select an Expense account and Liability account and click Next.
  7. Select Fringe Benefits and click Next.
  8. Scroll down to OR - Paid Fam Med Leave Co. and OR - Paid Fam Med Leave Emp. Uncheck these. Select Next
  9. Select Neither. Select Next.
  10. Enter your default amounts and click Finish when done.


For more details about tracking paid family and medical leave in Oregon in QBDT, see this article: Set up Paid Leave Oregon.


For future reference, here's a handy article to help you manage employees' deductions: Set up, change, or delete employee-paid payroll deductions.


Let me know if you still have more questions about managing payroll deductions and contributions or setting up payroll items. I'm always here to answer them for you. Have a great day!

Level 1

Paid Leave Oregon Default 1% - Need to Change for Equivalent Plan

Will this solution interfere with Oregon OQ reports or how the payments show up on the W2?  It is my understanding that Paid Leave Equivalent plans still need to be on the OQ and the employee W2.




Paid Leave Oregon Default 1% - Need to Change for Equivalent Plan

Hello again, ejcomfort.


Thank you for keeping in touch with us regarding the steps shared above. Allow me to chime in and share more information about setting up Paid Leave Oregon in QuickBooks Desktop.


QuickBooks is connected directly to your state and is up-to-date with any changes from the setup. These steps will not interfere with the reporting and ensure correct posting to Form W-2. The steps are also available in our article about Paid Leave Oregon: Set up Paid Leave Oregon.


We've also compiled local tax resources and info you can use for Oregon. You can use this link to make sure you get the most accurate local tax jurisdictions and get the physical address for your employee's home and work locations: Set up local taxes in QuickBooks Online Payroll.


You're welcome to post about your payroll concerns in this space. If you have additional questions about the payroll setup, let us know. We'll be here to lend a hand.

Level 2

Paid Leave Oregon Default 1% - Need to Change for Equivalent Plan

This continues to be an issue.  After calling Enterprise support; they had me change the % company contribution and % employee contribution to equal the entire equivalent plan premium.  That premium for me for my equivalent plan is .84% NOT 1% that is set if we utilize the state plan.  The 1% rate is hard programmed into quickbooks becuase it controlled by our State of Oregon.  So, since we cannot change the 1% I was advised to change the % for co. and ee.  I use .50% for employee (60% of .84%) and .34% for employer/company (40% of .84%.  Did as was recommended and assumed all was good.


Today, I began processing my quarterly payroll reports.  Quickbooks calculates that for me.  However, The Paid Leave fields populate as if I owe Oregon money.  My Oregon total due should be zero.  But it is not.  And, even if it credited me for my payments; they are incorrect.  It is populating with a Paid Leave Contribution Rate of .0100 or 1%.  But, my rate is only .084% (less than 1 percent).


Obviously, there is a disconnect between the Quickbooks team and Oregon's Quarterly OQ form.  Or, there is a setting no one is sharing.  Basically, my OQ report says I owe (in simple numbers)  $1,000 for total due for PMFL contribution rates.  That is the default 1% of 100,000 in wages. $600 from employees and $400 from the company.  However, my rate is only .084% (not 1%) so my total is actually only $840. Of which I withheld $504 from employee wages (60% of the premium) and the company paid the $336 (40% of premium).  That premium was paid directly to the Private Carrier of our equivalent plan.


Maybe a quickbooks expert from Oregon can assist.  I know my explanation repeats itself a bit; but I a still waiting for someone to "get it" what I am talking about.  I have one more day to get my report done. 


Paid Leave Oregon Default 1% - Need to Change for Equivalent Plan

Hi Debrah2,


Thank you for providing additional information about the effects of the setup on your quarterly reports. I understand that you initially received assistance from the dedicated desktop payroll team.


In order to thoroughly review your data and apply the appropriate solution, I recommend reaching out to them again. You can request utilizing a screen-sharing tool during the process to facilitate a more efficient and effective resolution. This will allow the support team to directly observe and assist with the figures that reflects on the report.


If you have other concerns about payroll, please don't hesitate to go back to this thread. Take care and have a good one.

Level 1

Paid Leave Oregon Default 1% - Need to Change for Equivalent Plan


Is it possible to contact me? I am wondering if you ever found a solution to this issue? [email address removed]

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