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WA Paid Family and Medical Leave for Small Employers, Desktop Application

Conditions: This article considers payroll setups in QuickBooks Desktop for Washington Paid Family and Medical Leave for the following conditions as allowed by law:

  • Small Employer (fewer than 50 employees) electing NOT to pay the Statutory Employer portion of the tax
  • AND Small Employer electing to pay
    • All of the the Statutory Employee portion of the tax (Employer pays Statutory Employee portion)
    • Some of the Statutory Employee portion of the tax (Employer and Employee split the Statutory Employer portion)
    • None of the Statutory Employee portion of the tax (Employee pays Statutory Employee portion)

 

Solutions for QuickBooks Desktop Only (see also Notes, at end):

 

Small Employer Pays ALL the Statutory Employee portion of the tax  (Employee pays no tax)

For each Employee subject to the tax:

  • Edit the Employee and navigate to Payroll Info>Taxes>Other
  • Select (or Add) the following Item:
    • WA - Paid Fam Med Leave Emp.
      • Set the Emp. Portion Rate to 0.0%
      • Note: This will result in NO deduction from the employee's paycheck
  • Select  (or Add) the following Item:
    • WA - Paid Fam Med Leave Co.
      • Set the Co. Portion Rate equal to the Statutory Employee portion (63.33% of the total tax rate)
      • Note: This will result in the Employer having a payroll expense and liability in the amount equal to the Statutory Employee portion of the tax.

Small Employer Pays SOME of the Statutory Employee portion of the tax (split with Employee)

As an example, suppose the Small Employer elected to pay half of the Statutory Employee portion of the tax.

 

Note: Other splits are possible  so long as the combined portions do not exceed the Statutory Employee portion of 63.33% of the total tax rate (when the Employer is elects not to pay the Statutory Employer portion of the tax).

 

For each Employee subject to the tax:

  • Edit the Employee and navigate to Payroll Info>Taxes>Other
  • Select (or Add) the following Item:
    • WA - Paid Fam Med Leave Emp.
      • Set the Emp. Portion Rate to 31.665%
      • Note: In this example the Employee will have a payroll deduction in the amount of one half the statutory Employee portion of the tax (one half of 63.33% of the total tax rate)
  • Select  (or Add) the following Item:
    • WA - Paid Fam Med Leave Co.
      • Set the Co. Portion Rate to 31.665%
      • Note: The Employer will have a payroll expense and liability in the amount of one half the statutory Employee portion of the tax (one half of 63.33% of the total tax rate)

Small Employer Pays NONE of the Statutory Employee portion of the tax  (Employee pays entire Statutory Employee portion of the tax) 

For each Employee subject to the tax:

  • Edit the Employee and navigate to Payroll Info>Taxes>Other
  • Select (or Add) the following Item:
    • WA - Paid Fam Med Leave Emp.
      • Set the Emp. Portion Rate to 63.33%
      • Note: This will result in a deduction from the employee's paycheck in the amount of the Statutory Employee portion  (63.33% of the total tax rate)
  • Select  (or Add) the following Item:
    • WA - Paid Fam Med Leave Co.
      • Set the Co. Portion Rate equal to the Statutory Employee portion (0.0% of the total tax rate)
      • Note: This will result in the Employer having a NO payroll expense and liability.

 

Notes: 

These solutions work only for Intuit's Desk Top payroll platform and DO NOT WORK for QuickBooks Online.

 

See also https://community.intuit.com/articles/1774895-washington-paid-family-and-medical-leave-new-tax-2019.

  • This article was updated on January 8, 2019 and  allows for (but does not specifically show) these solutions.
  • This article asks for percentages to be entered as whole numbers. However, the application will accept and will calculate percentages with decimals.

 

 

 

1 Comment
Active Member

Re: WA Paid Family and Medical Leave for Small Employers, Desktop Application

Sorry,  I have payroll for one person...husband.  Can't help you.