Paid Leave Oregon

Hello there, gorgewindowclean.

I'm here to share more information on how QuickBooks files and pays Oregon taxes.

QuickBooks has two options on how you can manage taxes. You can either do it manually or have the system do it for you. If you opt to use the second one, you'll have to complete the tax setup first. I've added this link for the detailed information: Pay and file taxes.

As for the Frances Online, I'd suggest reaching out to their support team. They are the best one that can share with you more information about paying and filing taxes.

I've also shared these links as your guide on the different tax forms QuickBooks Payroll does for you:

• Payroll taxes and forms
• Set up e-file and e-pay

You can always get back to this thread whenever you have payroll questions.

Hi Adrian,

Thanks for the quick reply and links. 
So Paid Leave Oregon is a brand new program that starts in 2023 and has to be reported and paid through a state website called Frances Online. 
I’m wondering if QBO payroll will be doing this or if I will have to do it. 
It’s totally new for everyone in Oregon. 
Thanks

Hello @gorgewindowclean,

Thank you for getting back to us here in the Community space. Allow me to chime in and provide additional information about setting up Paid Leave Oregon in QuickBooks Online.

We continue to keep in touch with your state for any updates related to payroll. However, an update regarding the new program for the year 2023 is not yet available.

We'll provide an update before the new year starts regarding the supportability. You may need to do it manually within your state website if QuickBooks doesn't support it.

If there are changes to your employees' profiles, update the details within the Payroll section. For your reference, I've attached an article with detailed steps on the process in QuickBooks: Edit or change employee info in payroll.

Drop me a reply if you need a hand with managing payroll or the paid leave. The Community and I will be around for you.

What about Desktop QB?  When will QB have the new PLO tax as an item we can set up so the deductions are made from employee paychecks?  And will this roll out better than the Washington paid leave which did not calculate correctly in the beginning so we had to create our own deduction?  This tax begins Jan 1, 2023 and I have seen no updates to roll this into our product.  When can we expect that?

Thanks for joining the thread, @brogoitti.

The Paid Leave feature for the state of Oregon is currently not accessible in QuickBooks, and we're unable to give a specific timeline for when it gets available in the program.

In the meantime, you can check out these articles that provide information about the payroll tax update in QuickBooks:

• Understand how your payroll taxes are calculated.
• Get the latest payroll tax table update.

You may use this article as a reference if you need to access your tax records and completed tax payments in QuickBooks Online Payroll: Access payroll tax forms and tax payments.

If you have further questions concerning payroll tax-related concerns, please feel free to comment below. I'm always willing to assist . Have a great day, brogoitti.

Your links didn't help me regarding this specific deduction (unless I missed something!)  If we have QB Desktop, do our payroll through it, and you do not have the update for the new law, how do we set that up?  We would prefer not to be out of compliance and we do our payroll through you, so I'm a little confused on how to proceed. Thank you.

Hello there, Sus2.

As my colleague shared above, QuickBooks complies with your state. When the state rolls an update, we'll notify everyone. Updates usually take before the new year starts.

You may need to do it manually within your state website if QuickBooks doesn't support it.

If there are changes to your employees' profiles, update the details within the Payroll section, you may check this reference: Edit or change employee info in payroll.

You can always get back to this thread if you have further questions.

Washington PFML has a calculator that you put in the gross wage and it shows you what the deduction should be.  I have reached out to Oregon multiple times asking if this will be available.  It is a pain having to do EVERY employee but at least I know I have the right numbers and it just takes a second.  

QB doesn't calculate the WA PFML correctly, so I am not expecting OR's to be any different, unfortunately.

Frances is the site you will report everything.  BUT still pay on Revenue on Line.

If you have very many employees, the template works pretty easily to upload.

Ok so sounds like QB Payroll will do the withholding but we, employers, will need to report and submit to Oregon? 
I guess employers need to get a Francis online account. 
I was waiting to hear because I thought QB payroll might be submitting and didn’t want there to be two accounts for one business. 
Can anyone confirm please

Thank you for sharing your experience.  I have about 50 payroll clients and do NOT use QB Online, rather I use the desktop version so the reporting part is old hat for me.  I just ran a payroll with 70 employees, I am truly hoping QB gets the calculation figured out so the deduction works correctly because what a colossal time-suck THAT will be x 50 clients x 2-3 payroll cycles each per month!! Luckily I only have a total of 4 people that work in Washington and 1 of those employers pays the employee's portion, so I haven't had to worry about that too much.  I'll just cross my fingers I guess (and maybe think about retirement, haha!)  

This is from the Paid Leave Oregon website:

How are wages reported and contributions paid to the
department? Contributions are a payroll tax and will be included in combined payroll
forms starting in January 2023. Employers will deduct employees’ paid leave contributions
from paychecks. Employers will then report wages and pay both the employee and employer
contributions through the combined payroll reporting process.

This starts in 2 weeks !    QBO Payroll needs to address this for Oregon businesses ASAP !

Extremely thankful for the Paid Leave Oregon now available in QBO but I do have a few clients that still use QB Desktop for payroll and do not see an option for PLO.  Please advise.

I am not seeing where it is set up in QBO?  I just called QBs and they told me it is not set up yet.  Where are you seeing it?  Thanks!

Hi there, KH511. 

I'd be glad to help you set up Paid Leave Oregon in QuickBooks Online Payroll. 

You can go to the Payroll Settings to add the Paid Leave Oregon to your employees in QuickBooks Online (QBO). I'll show you how:

1. Go to the Gear icon, and select Payroll settings.
2. Click Edit from Oregon Tax.
3. Select Create Policy and enter the number of employees used to determine your rate.
4. Enter your OR FAMLI Agency ID and click Define Rates.
5. Enter your Policy Name.
6. Select the effective start date.
7. Enter the contribution percentages for you and your employees.
8. Once done, click Save. 

In case you'll want to exempt employees from Paid Leave in Oregon. You can follow the steps below:

1. Go to Payroll from the left menu. 
2. Click Employees.
3. Select your employee.
4. From Tax withholding, select Edit.
5. From Tax Exemptions, select OR PFML.
6. Select Save.

Additionally, I'll be sharing these articles you can utilize in the future to help you with the different tax forms: 

• Payroll taxes and forms QuickBooks Payroll does for you
• Set up e-file and e-pay in QuickBooks Online Payroll

Visit us again if you have other questions about setting up paid leave in Oregon in QuickBooks. The QuickBooks Team is always ready to help you. 

In the payroll tax setup for the Oregon PFML, it asks for a OR PFML Account number/agency ID. We are below the 25 employee threshold and are therefore not required to make any employee contributions. Do I still need this number? Can I just leave this field blank (although QBO keeps reminding me to enter it)?

As far I understood the OR state literature, any preexisting business is automatically registered into the PFML system, therefore I did not receive any ID number during a registration process.

Please advise.

Tobias

Tobias,

I believe you are mistaken.  The employee portion must still be dealt with for employers with 1-25 employees.

How much are contributions?
Contributions are a percentage of wages. This calculation is based on the first $132,900 you pay to each employee.

Which employers and employees are required to participate in Paid Leave Oregon?

All employers, except federal and tribal governments, are required to participate in the Paid Leave program. Tribal governments can choose to provide coverage through the program.
All employees, except employees of federal and tribal governments, are required to participate in Paid Leave Oregon. Employees of tribal governments participate if their tribal government chooses coverage. Self-employed individuals and independent contractors can also choose to participate.

What support is available to small employers?

Small employers (fewer than 25 employees) are not required to pay the employer portion of contributions, but must still withhold for the employee portion. The Employment Department will notify employers of their size each year.

Yes, I understand. I meant the employer portion we don’t have to contribute. What of the account ID though? Do I need to run this down with OR labor department or is this only for business that run their own alternative pfml plan?

Hello, small business here with under 25 employees. 

Employer does not pay and employee contribute .60%  However quickbooks does not allow me to edit the amount under payroll item.  Defaults to 1%. will there be an update?

Thank you

Just spoke with Oregon paid leave person.  Under 25 employees I'm required to withhold .60% for employee but quickbook defaults to 1% can I edit this number?  So far it won't let me.

Thanks

I can help you with editing the contribution percentages, @nonrenew.

You can update the contribution percentages for you and your employees from the Payroll settings.

Follow the steps below:

1. Go to the Gear icon ⚙ and then Payroll settings.
2. From Oregon Tax, click Edit ✎ and click on Create Policy.
3. Enter the number of employees used to determine your rate.
4. Enter your OR FAMLI Agency ID and Define Rates.
5. Provide your Policy Name and select the effective start date.
6. Enter the contribution percentages for you and your employees.
7. Click on Save. 

Refer to this article for more information about how the Paid Leave Oregon program works and adding them to your employees: Set up Paid Leave Oregon. 

Here's also how you can submit your W-2 forms to Federal and state agencies: File your W-2 forms. 

Leave a comment below if you have other concerns about editing the contribution percentages. The Community and I will be around to help you!

How come when I set up the new policy, hit save and run a new payroll check, it doesn’t show up as a deduction? 

I'm having this same issue, it's showing no deduction at all on any employees for the paid leave. Any help would be great since I'm running payroll on Wednesday.

Thank you!

Thanks for jumping in on this thread, @FergusonFab1995. Let me help you get across this challenge so the Paid Leave Oregon deduction will show in your employees' paychecks in QuickBooks Online (QBO).

After setting up the Paid Leave Oregon in QBO, the policy will automatically reflect employees' paychecks assigned to your Oregon work locations. However, if the deduction isn't showing, let's check if the employee isn't exempted from the paid leave.

Please see the steps:

1. Go to Payroll and select Employees.
2. Select the employee.
3. Click Edit in the Tax withholding section.
4. From Tax Exemptions, ensure that the box for OR PFML is unchecked.
5. Select Save.

If the issue persists, it's best to reach out to our customer support. You may request a screen-sharing session with them in a protected setting so they can better specify what's causing the deduction error. This way, they can provide the best resolution for your issue.

I'll attach this article for your reference if you want to have an overview of your business' finances in QBO: Run payroll reports in QuickBooks Online Payroll. It contains reports relevant to payroll, which you can use when filing taxes. 

Feel free to leave a reply below if you have further concerns about setting up payroll deductions in QBO. The Community is always open to lend you a helping hand. Stay safe!