Washington state workers comp rates. Need help figuring out percentages.

Hello, Kaceyt. 

Changing your worker's compensation rate will also change the calculations for your employees. Let me add a few details and help you further.

In QuickBooks, we can only edit the rate and the effective date for the calculation to be correct. This said it'll apply directly to all your employees.

You may follow the steps bow on how to get there:

1. Click the Gear icon at the upper right corner and then choose Payroll settings.
2. Go to the Tax Setup tab.
3. Select the state for Worker's Compensation Tax Setup.
4. Hit on Edit to the class that contains the rate to be updated.
5. Update the rate from the Composite Rate and Payroll Deduction box 
6. Hit OK once done.

To give you more details about the Washington workers' compensation setup and calculations in the system, feel free to visit this link: Learn how to set up and calculate Washington Workers' Compensation.

Also, you may want to check this article for additional details: Learn about and get workers’ compensation insurance.

Please know that you can always post here if you have further concerns about WA Comp rates in QuickBooks. I'm always here to help you. Have a good one. 

I am also having issues with this. My rates are hourly rates and in dollar amounts. How do I enter those on QBO. 

I'll help you set up your worker's compensation, @Ros12.

If you employ people in the state of Washington, you must carry workers' compensation insurance. The Washington State Department of Labor and Industries (WA L&I) is in charge of administering it.

The premiums on your employees' paychecks can be calculated using the classes and rates you set up for your WA workers' compensation. Then, as a reference, you can use our WA Workers' Comp Worksheet or a payroll report to assist you in making your premium payment and submitting Form WA F212-055-000 to the state on a quarterly basis.

You can start with obtaining your rates. Your rates can be found on the rate notification you get from the WA Department of Labor & Industries or online. When you enter your UBI account number, the Risk Classification section will display your rates.

You can then add a workers' comp class and rate to your employee. Please take note that each employee is limited to one class and pricing. You might need to manually compute the workers' compensation for your employee if they fall under more than one class and rate.

Here's how:

1. From the left menu, go to Payroll, then Employees.
2. Select your employee.
3. From Workers' Comp, select Start or Edit.
4. Select Yes, I have the tax rate.
5. Select New workers' comp class or choose your existing class.
6. Enter the following info:
   • Class: first 4 digits of the Class Code
   • Subclass: second set of digits on the Class Code
   • Nature of work (optional): listed as the Class Code Description on the rate notice
   • Composite rate: the total rate of Employer + Employee
   • Payroll deduction: the employee rate used to calculate the amount on your employee’s paycheck.
   • Effective date
7. Select Done. You can now assign the same class or set up other classes for the rest of your employees.

You can read this article to learn more about the detailed process: Manage Washington (WA) workers' compensation.

Let me know if you have additional questions about worker's compensation. I'm always here to help. Have a great day.

This does not answer the question. WA State sends dollar withholding, not a percentage. Until 2024, QBO would allow this dollar withholding to be entered. Not, it only allows a percentage. The link provided to a more "detail" look of how to set this up does not provide any additional useful information. 

There is no composite rate as a percentage, only a rate per hour in Washington. Please update the WC fields to support an hourly rate and not a percentage.

Let me share some information about Washington state workers comp rate in QuickBooks Online (QBO), egiaquinta.

The option to enter composite rate as a percentage for Washington state workers is unavailable in QBO. We follow the formula for Composite rate: the total rate of Employer + Employee. Also, the worker's comp is calculated in Washington state where only actual hours worked are used when determining the WC calculation. Vacation, sick, holiday pay, and so on, should not be counted, even if it's paid leave. The formula for WC calculations is: rate x hours worked and 80 hours are worked during the pay period.

We see consumer feedback as an opportunity to improve the numerous features of our products. I'd recommend giving our engineers direct feedback. They may look into this suggestion and incorporate it into future updates. Here's how:

1. Go to the Gear icon.
2. Hit Feedback.
3. Type in your recommendation in the Share your feedback field.
4. Click Next.
5. Follow the on-screen instructions to complete the process.

 Furthermore, you can visit this page to stay up to date on the latest software improvements and enhancements with QBO: Customer Feedback for QuickBooks Online. To learn more about setting up, changing, paying, and filing WA workers' compensation (also called L&I) in QuickBooks Payroll, check out this article: Set up and manage Washington (WA) workers' compensation.

Just in case you need to change your WA workers’ comp rates, follow the steps below:

1. Go to the Gear icon on the top menu, then Payroll Settings.
2. From the Washington Tax section, select WA Workers Compensation Tax.
3. Click Edit ✎ next to the workers’ comp class you wish to change.
4. Enter the new Composite Rate, Payroll Deduction, and/or Effective Date.
5. Press OK.

Feel free to visit our Payroll page for more insights about running and processing payroll in your account.

If you ever come across any more concerns or ideas regarding managing your payroll, you're always welcome to reach out. I'm here to help you and address any questions you may have.

Your reply is incorrect.  For 2024, Quickbooks is only allowing a PERCENTAGE to be entered for the both the Composite Rate and the Payroll Deduction rate for Washington Workers Compensation.  Something changed in the Quickbooks programming.  It won't allow me to delete the percentage symbol, and it won't allow me to enter the rate per hour.  It is CRITICAL that this is fixed immediately!

I am also waiting for a response on this!

me too!

Me too.  Seems that I can't get ahold of anyone that understands that you can't put a dollar figure as a %.  

We appreciate you for joining this thread, @harley c and @kellyjoc.

QuickBooks Online Payroll (QBOP) only allows a percentage to be entered into both the Composite Rate and Payroll deduction rate. I agree with what my colleague above suggested to submit direct feedback to our Product Development Team. They might add this to our future product updates.

You might want to be in the loop about QBO system updates. Feel free to click this link: QuickBooks Blog.

For additional questions about managing your payroll deductions, don't hesitate to reply to this post. I'll be willing to help.

I actually spent over an hour on the phone with a QB Workers Comp specialist - very friendly and tried so hard to help me, but was clearly quite baffled over what his OWN COMPANY has done to the program!  It's really ridiculous.   Poor guy tried so hard.  I am still waiting for a call back.   

Brian - I am very curious as to why it's been a dollar rate for ALL previous years, yet they changed the formatting for 2024 to only allow a percentage.....?  This makes no sense! 

I just got done chatting with QBO and was told that entering a % rate is our only option. I am not sure what to do.  I have payroll this week.  What have other WA state employers been doing?

Anyone find a work around for this or hear anything from QB technical support?  I'm having the exact same problem and the fix needs to happen ASAP!

I have not been able to find a work around.  If you try to convert the $ amount to a % it is not accurate.  This is so frustrating.  They told me last night that entering a % is the only option.  If they will not fix, I will have to find another payroll company.  I am so disappointed.  We have always been able to enter a dollar amount.  I cannot understand why they made this change - they are aware of how Washington State handles workers comp..

Hello, hb11 and HeidiSW.

I can help you with getting your WA workers' comp rates. 

The composite rate is the total rate of employer and employee. You usually find your rates on the rate notice you get from the WA Department of Labor & Industries, or on their website. Just enter your Unified Business Identifier (UBI) number and your rates will show under Risk Classification.

Once you get your rate, here's how you can add a workers’ comp class and rate to your employee: Set up and manage Washington (WA) workers' compensation. This will also guide you with paying, filing, and changing WA workers’ comp rates.

Here's some topics that answers your most common year-end questions: Manage taxes in QuickBooks. 

Let me know if you need more help with your WA workers' comp rates. I'm always here to assist. Have a wonderful day!

MJoy_D Your response indicates you have not fully read this entire thread, nor are you knowledgeable about your own software!   Quickbooks will NOT allow the rate to be entered, it only allows a percentage to be entered.  The rate is a dollar amount per hour, not a percentage.   The software is wrong and MUST be fixed immediately, or all of your Washington State customers will not have their Workers Compensation taxes calculated correctly.  This is absolutely unacceptable, considering how you keep increasing the cost of the software!!! 

Your programmers need to get it together - it's ridiculous.

I know our rate and how to add, but WA state rates are a dollar amount NOT A %. 

We cannot change the dollar amount to a % - it will be incorrect and not take the correct amount out of the employees check.  We have always been able to enter a dollar amount.  This is going to cause my paychecks to be incorrect.  I have payroll tomorrow.

hb11 I am so sorry.  I have payroll next week and am praying it gets resolved. 

I did see a post somewhere about a workaround, by adding a deduction to each employee's check.   

If you go to the employee's file, 'Add deduction/contribution', 'Other Deductions', 'Other after tax deductions'  you can enter it as 'Per Hour Worked' and then the rate.

It won't be perfect, but it should deduct close to the right amount on each paycheck.  Total pain in the ***.  

Good luck!

JenG - thank you. I did not see that post.  I am also having an issue with it now letting me save the correct WA PFML rate.  The rate is there, but it won't save!  It is beyond frustrating!!

I had that problem too!  Spent over an hour on the phone, and the person I spoke with finally fixed it for me, somehow 'behind the scenes' - no idea how.   SO frustrating 

I spent all morning with them on it and was told I would get a call back tomorrow. Wish I had your behind the scenes guy!

JenG and harleyc - I just spent about 40 mins + on chat and they finally figured out they had to change it "behind the scenes."  I had to send them proof of the new rate too - which seems insane because they already had the new rate in the system.  It has something to do with e-services.  I have e-services inactive because QBO does not calculate my L&I quarterly taxes correctly.