Learn about different types of CA wage plan codes and how to assign them to employees, in QuickBooks Payroll.
You may see a warning message when running your payroll in QuickBooks Desktop Payroll that your employees are missing tax info. If your employees are in California, they may be missing the wage plan code.
California has implemented wage plan codes that can be entered into QuickBooks for each employee. The wage plan indicates the type of coverage your employee has. It’s correlated with your State Employer Account Number (SEAN).
To learn more about employer account and wage plan code correlation, check out this EDD Publication.
See the table below for the description of the individual wage plan codes.
|Wage Plan Code
|Employee Benefit Coverage and Use of Wage Plan Code
|Your employee’s total subject wages can only be used for UI benefit purposes.
Used on accounts not covered by State Disability Insurance (SDI) or Voluntary Plan for Disability Insurance (VPDI)
|Your employee’s total subject wages can only be used for SDI benefit purposes.
Used on accounts not covered by the State UI plan.
|Your employee’s total subject wages can only be used for VPDI benefit purposes.
Used on VPDI accounts not covered by the State UI plan.
|Your employee wages and/or withholdings are reported under an account that is only subject for PIT withholding purposes.
|Your employee’s total subject wages can only be used for UI benefit purposes. This wage plan code is only valid for employees with one of the following DI exclusions when reported on an account subject to UI and SDI or VPDI:
• Sole Shareholders who have filed a Sole Shareholder/Corporate Officer Exclusion Statement, DE 459, and have been approved for a DI exclusion under Section 637.1 of the California Unemployment Insurance Code (CUIC).
• Third-Party Sick Pay recipients who claim an exclusion under Section 931.5 of the CUIC.
• Religious employees who have filed a Religious Exemption Certificate, DE 5067, and have been approved for a Religious DI exclusion under Section 2902 of the CUIC.
|Your employee’s total subject wages can be used for SDI and UI benefit purposes.
Note: S can also be used for employees who are only subject to PIT and are being reported under an account that is subject to UI and SDI.
|Your employee’s total subject wages can be used for VPDI and UI benefit purposes.
Used on VPDI accounts covered by a State UI plan.
If you need help determining the correct wage plan code for your employee(s), contact the Taxpayer Assistance Center.
Assign a wage plan code to each employee
- Go to Employees, then Payroll Setup.
- In the Payroll Setup window, select Employees then Continue.
- Select your employee.
- In the Action ▼ dropdown, select Edit.
- Select Next until you reach the Tax details window.
- In the State W-4 details section, select Additional state taxes. Select the appropriate Wage Plan Code.
- Select Next, then select Done.
Note: A wage code must be entered for all employees, even if they are inactive.