CT Paid Leave Employee Deduction

Let me provide some information about how Connecticut Paid Family Leave program works in QuickBooks, HelenControl.

The tax rate is 0.5% of employee taxable wages up to the Social Security (SS) limit. Then, all Connecticut-based employers are required to collect this tax from their employees. To be exempt from the tax, employers will apply and receive permission from the Connecticut Paid Leave Authority to provide a private plan to its employees.

In QuickBooks Desktop, we can only enter the 0.5 in the Employee tax rate window. If your company has been provisionally approved for an exemption (private plan), will need to enter 0. You are right, since you have a private plan with the rate of 0.4%, we'll need to create an adjustment in the software after processing payroll for that period. Here's how:

1. Go to the Employees menu, then choose Payroll Taxes and Liabilities.
2. Select Adjust Payroll Liabilities. 
3. Choose the period in the Date fields. 
4. Select if the adjustment is for the company or an employee:

• Employee Adjustment if the item you're adjusting is company-paid. It updates the YTD info reported on the employee W-2 form.
• Company Adjustment if you want the balance to be removed from the Payroll Liability Balances Report.

  5. In the Item Name column, choose the Connecticut Paid Family Leave. Then, complete the Taxes and Liabilities fields.

  6. Select Accounts Affected and then OK.

• Do not affect accounts to leave balances unchanged for the liability and expense accounts. The adjustment will only change the year-to-date amounts on your payroll reports.
• Affect liability and expense accounts to enter an adjusting transaction in the liability and expense accounts.

Then, repeat for other employees if you need to, and select OK. Here's an article you can refer to for more details about adjusting payroll liabilities in QuickBooks Desktop. 

Feel free to browse this link here if you need help with other tasks in QuickBooks Payroll. It'll route you to our general payroll topics with articles.

The Community always has your back, and I'm just a post away if you need a hand with processing your taxes and payroll forms. Just leave a comment below and I'll get back to you. Have a great day ahead.

Thank you for your response but no success.  I deducted the CT FMLA at the 0.5% for one week so far in 2022.only because I was not able to enter the private plan rate of 0.4%.  So, I now have each employee has had withheld the 0.5% for one week.  I need to get rid of this and apply the amounts toward the 0.4% account. QBs will not allow me to merge the two accounts.  How do I adjust the wrong 0.5% withheld from each employee and have those amounts instead go to a new FMLA account at the 0.4% and hopefully adjust itself along the way just like when the CT U rate changes?  Also, if I set up another account will the amounts withheld at the 0.4% show up on W2s and 941s?  Thank you for any additional info you can provide as I want to fix this before our next week's payroll.

Good day, HelenControl.

Thanks for giving details about your tax rate concern.

I see you have a similar post answered by my peer, ShiellaGraceA. If you haven't received any notification yet, you can click this link to be routed to the conversation.

Also, I encourage you to visit our payroll help page to browse articles that have detailed information to answer your concerns.

Feel free to visit the Community if you have any other questions navigating QuickBooks. We're here to help.