Tips as compensation not included in gross wages

Hello there, @LilBuga.

Let me share some information about WA Cares Fund and Tips as Compensation in QuickBooks Desktop (QBDT).

Encountering "NonStandard Taxability" for "Tips as Compensation" in Payroll Checkup means your payroll setup deviates from standard tax rules defined by federal and state regulations for tip handling. The way tips are managed and taxed may not align with typical taxability norms.

To set up the deduction for WA Cares Fund and WA Paid Leave for each employee, excluding tips, and have the employer pay for WA Paid Leave in QBDT, follow these steps:

1. Go to Employees, then select Employee Center.
2. Double-click your employee's name.
3. Go to the Payroll Info tab.
4. From Additions, Deductions, and Company Contributions, add the reimbursement item.
5. Repeat steps 2-4 for each employee.

You can visit this article for more information: Set up Washington Cares Fund payroll tax.

Additionally, here's an article in case you'd like to verify and add more details to your report to ensure your data stays accurate inside QBDT: Customize reports in QuickBooks Desktop.

If you have any more questions or need further assistance, feel free to reply on this thread. I'm here to help you with anything you need.

Same issue. PFML doesn't include tips but the systems is calculating WA Cares Fund and including types. This I believe is a Quickbooks issue effecting anyone in WA. Will be calling to correct this issue. 

tips not types

Also to clarify I use QB Payroll Online

Thank you for posting here in the Community, @MMM Consulting.

I've seen you posted twice in here. With that let me route to the the thread where my colleague provided an answer to your: https://quickbooks.intuit.com/learn-support/en-us/ffcra-and-cares-acts-including-the-ppp/re-wa-cares...

Feel free to add your comment here on the Community page.