WA Paid Family Leave on W2 ?

Thanks for posting your questions here in the Community, @ekileen. We're still working with the IRS to get a determination on the taxability of PFML benefits. Should you need this reported to complete the W-2, I'd suggest you consult with a tax professionals to get specific advice.

Here's our help articles for additional information:

• WA Paid Family and Medical Leave (New Tax 2019). It helps you learn more about the PFL in QuickBooks. 
• W2 form boxes explained. It has everything you need to know about each field on the W2 form and how QuickBooks fills each box. 
• E-file Federal W-2 Forms. It guides you through filing your W2 forms automatically in QuickBooks. 

Feel free to ask more questions if you have any. We're always here to work with you. Have a great day ahead. 

Thanks. How do I get this tax to populate Box 14?

I just walked through the full setup process and there was nothing about where the employee portion is listed on the W2.

Let me clarify this situation, ekileen.

I've confirmed that the WA Paid Family Leave is not reported to the W-2 form.

However, I recommend consulting with your tax advisor if you want to report this on the form. He/She might have specific instructions on how you can set it up in QuickBooks.

On the other hand, I'll have my colleague update her response.

Don't hesitate to click the Reply button if there's anything else you need. Thank you and take care always!

In case anyone needs this information - I manually added the employee portion of WA Paid Family Leave to Box 14.

I exported a Payroll Summary report for the year and then used that information for updating everyone's W2. If employees want to see all of the local taxes they paid, it makes sense that it would be spelled out on the W2.

This a very similar tax to our L&I tax, the employee portion of which populates Box 14. I'm confused as to why Intuit doesn't treat this tax the same way. This was my workaround.

Thank you sooooooooooo much i was running into the same problem.  I will also manually enter the employee portion of WA PFML.  I agree that this type of payroll tax should get recorded somewhere on the employees W2 for better visibility.  

Hi, User1982.

As referenced by my peer above, this type of payroll tax will be recorded in the employee's W-2 if your state requires it. I'd suggest consulting a tax advisor. They can provide you ways on how you can record or set this up in QuickBooks so you stay compliant with the government.

You can locate more information on this in the following resources:

• WA Paid Family and Medical Leave (New Tax 2019).
• W2 form boxes explained. 
• E-file Federal W-2 Forms. 

If you require more information about the employees' W-2 or anything about payroll tax. I'd be glad to help and provide you additional insights. You have a wonderful day!

Hello, 

My question is about WA PMFL in box 14, what explanation do I select for it from the list?

there is other- not on the list belie

code U, V, W, X, Y, or Z

wages for SDI, VPDI, UI, etc

and other options.

what should I select?

Hello, 

My question is about WA PMFL in box 14, what explanation do I select for it from the list?

-there is other- not on the list below

-code U, V, W, X, Y, or Z

-wages for SDI, VPDI, UI, etc

-WA Workers Compensation Fund Tax

-other mandatory deductible state or local tax not listed.

and other options.

what should I select?

...but it's not a tax, technically.  It's insurance.

However, Employee PFML is not a tax technically.  It's insurance.

But...it's not a tax.  It's insurance.

I'm still unclear how to code this in the Box 14 categories ...

If the state calculates WAPL based on your wages at a flat rate and the money goes to them, does it matter if it’s called insurance or tax. It’s the same thing. NJ has state Disability and Family Leave insurance (FLI). NJ disability is in box 14 but NJ FLI is in box 17 along with state wages.  Connecticut has Paid Medical Leave and Massachusetts too and they are both in box 14. Safe bet is to report it in box 14 and get the credit for paying into the state benefit. 

I have the same question. Are WAPFL and WAPML premiums tax deductible? What category do they fit in?

I entered Washington Workers Compensation Fund Tax.

I have the same question what category we should select , there is only one category for WA is "Washington Workers Compensation Fund Tax", is that correct ?

Hello, dipeshp.
 

I understand that you have a question about selecting the category for WA Paid Family Leave. Can you confirm if you are trying to set up a custom state payroll tax specifically for WA Paid Family Leave?

Additionally, it would be helpful if you could provide a screenshot showing the category option for "Washington Workers Compensation Fund Tax". I'd appreciate it if you could give me a few details regarding this concern. This way, I can provide relevant information and guidance to address your concerns.

Feel free to add some details by leaving a comment below. I'll make sure to check on your response. Have a great day!

It is literally called the Washington State Paid Family Leave Tax and Washington State Paid Medical Leave Tax.  And the cost is income-based, not a set premium, so it both respects, it is clearly a tax.

I believe there was some misunderstanding about the point of the original question.

Or maybe I did. Either way, the question I'm hoping to clarify for me and everyone else:

For the Washington State Paid Family Leave Tax and Washington State Paid Medical Leave Tax withholdings, where do we deduct those on the Federal Return?  My employer does not report them on the W-2 but the withholdings for both taxes are clearly listed on every pay stub.  I can't find an appropriate entry anywhere else to get "credit" for this seeminly obvious tax deduction.

As I mentioned in a reply above, they are literally listed as WA Paid Family Leave Tax and WA Paid Medical Leave Tax on the paystubs.  There shouldn't be any debate about them being considered State income taxes, since that's what they call them, especially since the witholdings/premiums are income-based, not a set premium for every worker, and that the withholdings are mandatory, not optional.  That's a tax.  An Income Tax.

Thank you!

After a little digging, I found this on the IRS forms website for Schedule A (https://www.irs.gov/instructions/i1040sca#en_US_2023_publink53061xd0e616).  It  conclusively answers my question about whether you can deduct the WA Paid Family/Medical Leave Taxes on your Federal Return: the answer is yes and no. 

As it says below in the quoted text, you have to choose whether you wish to deduct the State Sales Tax or the State income taxes.  You can't do both.  Since the State Sales Tax deduction far outweighs my contribution to the Paid Family Leave Taxes, that is the choice for me.  Presumably it would be for most Washington Residents.

Although the Washington State Paid Family/Medical Leave programs aren't specifically mentioned, the wording of the final line is key:  It says, "...contributions to state family leave programs, such as..."  That wording of "such as" leaves open the inclusion of Washington State's more-or-less identical mandatory plans.

"Line 5a

You can elect to deduct state and local general sales taxes instead of state and local income taxes. You can't deduct both.