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sarahm5
Level 1

Desktop payroll-edit other tax payroll item rate

In my first quarter of doing payroll in Quickbooks, I've learned that my WA State Paid Family Medical Leave "Other Tax" payroll item is not set at the correct rate. I know how to go in and update and adjust previous paychecks/liabilities. My question is how do I update the rate of the current Payroll Item? I can't find anywhere to do that! Do I have to create new payroll item and start fresh this quarter?

5 Comments 5
MariaSoledadG
QuickBooks Team

Desktop payroll-edit other tax payroll item rate

I understand how you want to update your taxes to the correct rate. I have some options on what you can do about it, Sarah.

 

QuickBooks is compliant with your state and that includes accurately withholding and remitting payroll taxes. You'll just have to make sure to get the latest payroll update. This ensures that QuickBooks will automatically update to the correct rate with your current payroll. 

 

Therefore, you don't have to create a payroll item or do anything about it. 

 

You can also check out how Washington's Paid Family and Medical Leave program works. I've added this article for more details: Set Up and Manage Paid Family and Medical Leave.

 

Moreover, QuickBooks offers different kinds of payroll and employee reports that help you manage and keep track of employee expenses and the company. Go through this article for more additional information: Customize Payroll and Employee Reports.

 

If there's anything else that you need help with about taxes, please let us know so we can help you out We're here to ensure we get you covered.

sarahm5
Level 1

Desktop payroll-edit other tax payroll item rate

Unfortunately, the rate in Quickbooks Desktop for the WA Paid Family and Medical Leave Act is incorrect for us. We only have 3 employees, so the employer does not have to pay the employer portion, so the rate is not the published .74%, but

  • The total premium rate will decrease to 0.74%.
  • Employers will pay 28.57% of the total premium and employees will pay 71.43%.
  • Businesses classified by the Employment Security Department as having fewer than 50 employees for the 2024 calendar year are not required to pay the employer portion of the premium. However, you must still collect the employee premium or pay employees’ premiums on their behalf.

Therefore, the rate is actually .528582%. I just tried to file my report with the the agency, and based on our total wages, this would be our total rate, not the .74%. 

 

That is why I want to update the rate, but I can't see a way to do that. Is there a way to update the rate? Or can Quickbooks fix their back-end so I get the right calculation?

ReymondO
Moderator

Desktop payroll-edit other tax payroll item rate

Hey there, @sarahm5. Thanks for getting back to the thread. 

 

I'd be glad to share the steps on how to update the tax rate for WA State Paid Family Medical Leave in QuickBooks Desktop. 

 

When an employee is subject to Washington Paid Family leave, the tax will appear on the Other tab in the Taxes window. You can go to this section to adjust the tax rates. Let me show you how:

 

  1. Go to Employees, and click Employee Center.
  2. Double-click the employee's name to open the Edit Employee window.
  3. Select the Payroll Info tab, then Taxes.
  4. In the Taxes screen that pops up, select the Other tab.
  5. Make sure the Washington Paid Family Leave items are there.
    • WA – Paid Fam Med Leave Emp: Employee portion of the total insurance premium
    • WA – Paid Fam Med Leave Co: Employer portion of the total insurance premium will be added to the Payroll Item List.
  6. Click the tax to change the rate.
  7. Select OK, then Save & Close.
  8. Repeat steps 2 - 7 for each covered employee.

 

For additional reference, please this resource: How to manage QuickBooks Payroll to track paid family and medical leave in Washington.

 

Moreover, you can check the WA Paid Family & Medical Leave website and their Premiums Calculator to know more about your rates.

 

You can also run several payroll reports in QuickBooks to view useful info about your business and employees. To see the list, just go to the List of payroll reports section of this article: Run payroll reports.

 

Please let me know if you have additional questions about managing your payroll items in QuickBooks Desktop Payroll. I'll be here to help you out. Have a good one.

susank
Level 3

Desktop payroll-edit other tax payroll item rate

So, there isn't a way to make the change for all employees at once?  Its rather tedious to make this change on each employee record.

SashaMC
Moderator

Desktop payroll-edit other tax payroll item rate

Hey susank,

 

Thank you for reaching out to the QuickBooks Community! Unfortunately, there isn't a batch action to make the changes to all employees at once. However, I will submit feedback about this for future updates.

 

 

Let me know if you have additional questions or concerns. Have a good one. 

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