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Intuit

Set up your Washington Paid Family and Medical Leave insurance premiums

Learn how to set up your Washington Paid Family and Medical Leave insurance premiums.

With payroll, you can set up your insurance premiums for Washington Paid Family and Medical Leave. All employers within the state of Washington State (with very few exceptions) must report your employees’ wages and hours and pay premiums each quarter.

Once you set up your insurance, the premiums will be collected per paycheck. New payroll taxes will be added to the payroll system.

Before you set up your premiums, make sure you’re adding the correct rates in your payroll. The size of your company will depend on how much you will pay.

Less than 50 employees

  • Employee portion rate: 63.33% (of 0.4% premium)
  • Company portion rate: 0% (of 0.4% premium)

More than 50 employees

  • Employee portion rate: 0% (of 0.4% premium)
  • Company portion rate: 100% (of 0.4% premium)

More than 50 employees where employer opts

  • Employee portion rate: 63.33% (of 0.4% premium)
  • Company portion rate: 36.67% (of 0.4% premium)

Important: For QuickBooks Desktop Payroll Assisted service users, if you see a balance due on the Washington Paid Family Leave website, please do not pay this on your own.

Learn how to set up your Washington Paid Family and Medical Leave insurance premiums with:

QuickBooks Desktop Payroll

Add the payroll item to your QuickBooks Desktop After you install the December QuickBooks Payroll update, the Add Payroll Item tool will help you create the 2 new payroll items.

Follow the on-screen wizard to set up the item. For each new Payroll Item, add the employer account number and vendor name.

Important: If you’re asked during the interview if this rate is part of the UI rate, select No. The tool will create two new payroll items related to the WA tax.

  • WA – Paid Fam Med Leave Emp: Employee portion of the total insurance premium will be added to the Payroll Item List.
  • WA – Paid Fam Med Leave Co: Employer portion of the total insurance premium will be added to the Payroll Item List.
    It will offer the option of assigning both Payroll Items to each employee.

After the Payroll Items are added, go to each employee tax setup to enter the percentage of the total insurance premium or 100% of 0.4% of employee wages.

NOTE if your employees earn tips. see the FAQs below. Enter the percentage of the premium you and the employee will pay.

The new deduction must be finalized in QuickBooks for each employee before you issue the first check for 2020.

  1. Go to Employees then select Employee Center.
  2. Select the employee name to open the Edit Employee window.
  3. Go to the Payroll Info tab and select Taxes.
  4. In the Taxes screen that pops up, select the Other tab.
  5. Select the WA – Paid Fam Med Leave Co lin. In the Co. Portion Rate field, enter the company share of the premium portion rate as a whole number (no decimals). Example: 36.67
  6. Select the WA – Paid Fam Med Leave Emp line. In the Emp. Portion Rate field, enter the employee share of the premium portion rate (no decimals). Example: 63.33

Your WA Paid Family Leave rate will automatically be set to .6333% for the employee and 0% for the employer for all customers. At a future date, employers with 50 or more employees will be automatically adjusted to .6333% for employees and .3667% for employers.

The option to cover employee contributions will be available. If you would like to make adjustments to the rate now, please contact us to set up this item for your company.

  1. Select the Gear ⚙ icon and then Payroll Settings.
  2. Select State Taxes - WA.
  3. Scroll down to the Paid Family Medical and Leave Premium ER item.
  4. From the dropdown menu, choose the rate corresponding to your responsibility from the Employee & Employers rate section above.

FAQ

Yes.  Check with your state if you are exempt from this tax.  To set up your payroll file as exempt.

Desktop Payroll

Enter 0 (zero) for both employee and employer amounts.

 

QuickBooks Online Payroll Enhanced

  1. Select Workers or Payroll menu, then Employees.
  2. Select the name of the employee.
  3. Select the edit (pencil) icon beside Pay.
  4. Next to the withholding section select the edit (pencil) icon.
  5. Scroll down until you see Tax exemptions.
  6. Ensure the tax is selected.
  7. Select Save.

Intuit Online Payroll

  1. Select Employees then select the name of the employee.
  2. In the Taxes and Exemptions section, select Edit.
  3. Ensure the tax is selected.
  4. Select Save.

QuickBooks Online Payroll (all other products) and Intuit Full Service Payroll

Please contact support for further assistance if you are using QuickBooks Online Payroll Core, QuickBooks Online Payroll Elite, QuickBooks Online Payroll Premium, QuickBooks Online Payroll Premium or Intuit Full Service Payroll.

Washington Paid Family Leave should not include any tipped wages. If you have any tipped employees or income - they will require payroll adjustments to ensure the tipped income is not included in the reported wages. Please refer to this article for help on how to run a payroll check up.

Basic, Standard, and Enhanced Payroll

If your employees earn tips, you must edit both tax items.

  1. Update to the latest tax table.
  2. From the Payroll Item List, edit the WA – Paid Fam Med Leave Emp and WA – Paid Fam Med Leave Co payroll items.
  3. Select Next until you see the Taxes window.
  4. In the Taxes window, select Default.
  5. Select Next until you see Finish, then select Finish.

Assisted Payroll

If your employees earn tips, and you have NOT paid any employees with tips, you must edit both tax items.

  1. Update to the latest tax table.
  2. From the Payroll Item List, edit the WA – Paid Fam Med Leave Emp and WA – Paid Fam Med Leave Co payroll items.
  3. Select Next until you see the Taxable Compensation window.
  4. In the Taxable Compensation window, select unmark all tips payroll items.
  5. Select Next until you see Finish, then select Finish.

Assisted customers who have paid employees with tips, contact customer service for support.

  1. Make sure every employee, in their employee profile, has a rate for employee and/or employer under WA – Paid Fam Med Leave Emp and WA – Paid Fam Med Leave Co.  This might include a zero rate for the employer.
  2. Go back to the Pay Employee workflow and right-click on the employee name and select Revert paycheck. Repeat for each employee in the pay schedule.
  3. If the tax calculated is still zero, review previous paychecks to see if the tax was over collected in previous paychecks. QuickBooks will automatically adjust current paycheck if previous ones were over collected.

Yes. WA requires program participation if worker receives payment for services perform in a company.

For more information on officers, owners or LLC members.
See Paid Family & Medical Leave.

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