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NancyC1
Level 3

Employer Taxes not consistently being taken

We are in Washington state and pay into WA L&I (worker's comp) on a quarterly basis.  Each payroll processed accrues employer liability per employee L&I rate.  EXCEPT for 3 employees where the employer accrual occurs only for the first paycheck in a month.  Has anyone seen this strange behavior?

 

Because we've had little success in dealing with the "[email address removed]" team, I am reaching out to my community.  Any ideas?

6 Comments 6
ChristineJoieR
QuickBooks Team

Employer Taxes not consistently being taken

Hi there, @NancyC1.

 

Since you posted twice with the same concern on the Community page, I'll route you to this link, where my colleague provided you with a suggested resolution: https://quickbooks.intuit.com/learn-support/en-us/employees-and-payroll/re-payroll-what-taxes-does-e....

 

If you need further assistance with accomplishing your payroll tasks, please notify me in the comment section. Keep yourself safe.

NancyC1
Level 3

Employer Taxes not consistently being taken

Hello.  These posts are independent.   This one is a concern because 3 employees representing 2 different work classes, are having workers comp deductions once a month (first paycheck) whereas ALL OTHER employees, including those in same workers comp class, are having deductions EVERY paycheck which is correct.  

Mich_S
QuickBooks Team

Employer Taxes not consistently being taken

Did you set up two classes for each of those three employees, @NancyC1

 

If yes, that's likely the reason why the WA workers' compensation isn't correctly deducted.

 

Each employee can only have one class and rate in QuickBooks Online Payroll. You'll need to manually compute your employee's workers' compensation if they fall under more than one class and rate. See this module for more information: Manage Washington (WA) workers' compensation.

 

Once you're good, you can also check out this extra article about paying your employees: Create and run your payroll in QuickBooks Online Payroll.

 

Furthermore, we'd appreciate any further information about your concern for today. This way, we can provide the best resolution.

 

Keep in touch so we can respond as soon as we can. We're available 24/7 to assist you with payroll or QuickBooks in general. Take the best care!

NancyC1
Level 3

Employer Taxes not consistently being taken

Mich, each employee is assigned to ONLY ONE w/c class.  For example, employee A and employee B are both assigned to class 4904-00.  Employee A is having worker's comp "tax" accrued EVERY payperiod - as it should be; the QuickBooks system is accruing worker's comp "tax" for Employee B ONLY on the first paycheck processed in the month.  I do not understand why.  These employees are setup identically.

Archie_B
QuickBooks Team

Employer Taxes not consistently being taken

Hi there, NancyC1. I have some information that will help clear things out.

 

Aside from the class and rate, QuickBooks calculates WA workers' compensation differently for salary and commission employees.

 

For salary employees, QuickBooks follows WA L&I regulations and calculates workers’ comp at 160 hours per month and it is calculated on the employee’s first paycheck of each month.

 

When creating paychecks for commission employees, however, the number of hours must be entered so that the WA workers' comp can be calculated.

 

You can also run a report for workers' compensation to see more insights. Here's how:

 

  1. Go to Reports from the left menu.
  2. Find the Workers' Compensation report from the search bar or scroll down to the Payroll section.
  3. Change the Date Range if needed.
  4. Select Run Report.

 

I've added this article for additional reference: Understand workers’ compensation insurance.

 

You can get back to this thread if you have other concerns about workers' comp. I'll be here to check and answer your questions. Take care!

NancyC1
Level 3

Employer Taxes not consistently being taken

Thanks everyone for your assistance.  Through the various links you provided I learned that Washington Worker's Comp Tax FOR SALARIED EMPLOYEES is only calculated on the first paycheck of the month and is based on 160 hours.  That answers the question for the 2 salaried employees but not the few and rather intermittent issues we've had with hourly employees.  However, we will monitor it closely and IF we experience any future issues with hourly employees we will reach out to Payroll Support

 

Again, many thanks.

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