cancel
Showing results for 
Search instead for 
Did you mean: 
dhelland
Level 2

Washington Paid Family Medical Leave not calculating correctly

Paid Family Medical Leave deduction for the employee doesn’t seem to be calculating properly. Wondering if anyone can tell me if  Fringe Benefits and 401k should be included as taxable compensation for this deduction?

5 Comments 5
FritzF
Moderator

Washington Paid Family Medical Leave not calculating correctly

Thanks for reaching out to the Community, dhelland.

 

To answer your question, only the Fringe Benefits should be included as taxable compensation for the Washington Paid Family Medical Leave.

 

Since you mentioned that it isn't calculating correctly, can you please share a screenshot of the employee's paycheck? This will help me review the calculation and investigate further.

 

Just a friendly reminder, since this is a public forum, make sure to hide the employee's private information to keep everything secure.

 

In the meantime, I'll be adding this article for more information about the Washington Paid Family and Medical Leave: Washington Paid Family and Medical Leave (New Tax 2019).

 

I look forward to hearing from you again. Have a good one.

dhelland
Level 2

Washington Paid Family Medical Leave not calculating correctly

temp.png

Then the gross wages would be minus the 401k to manually calculate the deduction? This employee's deduction should have been $8.77 or should it be $9.06?

ShiellaGraceA
QuickBooks Team

Washington Paid Family Medical Leave not calculating correctly

Hi dhelland,

 

You'll want to check your Washington Paid Family set up to fix this. Let me walk you through how.

  1. Click Employees.
  2. Click Payroll Setup.
  3. Click Continue until Taxes. Then, State taxes.
  4. Make sure to check the correct rate and set up. You can go to the employee setting to edit the rate.
  5. Click OK.

Please refer to this article for more information about: Washington Paid Family and Medical Leave (New Tax 2019).

Just click the Setup link.

 

Once verified, run a Payroll Detail Review report to see the total employees' wage base and the amount calculated for the paid leave. Go to Reports, Employees & Payroll, then Payroll Detail Review.

 

Also, the fringe benefits and 401k payroll items affect your gross wage. Make sure you have selected the correct tax tracking type to correct your employees' wage (Lists, Payroll Item List).

 

You can consult your accountant to know what tax tracking type to use.

 

Feel free to check this article for future reference regarding payroll adjustment: Entering wage base and tax adjustment to correct employee's quarter (qtd) or year to date (ytd) tota....

 

Drop a comment anytime if you need help with anything else.

dhelland
Level 2

Washington Paid Family Medical Leave not calculating correctly

Do you know if 401k should reduce the wages for this tax? I have everything set up correctly, but it still isn't calculating right. Unless, 401k should not be selected as a pre-tax deduction.

 

Thanks!

Anonymous
Not applicable

Washington Paid Family Medical Leave not calculating correctly

Thank you for the follow-up, @dhelland.

 

I'd like to help share some insights about the Washington Paid Family Medical Leave.

 

The default setup in both 401k and Washington Paid Family Medical Leave do not affect each other. Since 401k isn't included in the paid leave, this won't reduce the wages for this tax. 

 

QuickBooks automatically calculates based on the setup provided in this article: Washington Paid Family and Medical Leave (New Tax 2019).

 

If you'd like to make changes in the default setup, it'd be best to seek advice with an accountant or tax expert for assurance.

 

Let me include this article as well for the recommended setup of your 401k item: Set up a payroll item for retirement benefits (401(K), Simple IRA, etc.).

 

Keep me posted if you have other questions about tax tracking. I'll be here to help.

Need to get in touch?

Contact us