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Intuit
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Washington workers' compensation setup and calculations

If you're an employer in the state of Washington or with a work located in Washington, you are required to apply Workers' Compensation taxes. Workers' Compensation is an insurance for employers administered by the Washington State Department of Labor and Industries (WA L&I).

Form WA F212-055-000 is filed quarterly to this tax. QuickBooks Online Payroll Enhanced provides a worksheet help you prepare the original form provided by L&I.

Setup

Obtain your rates

WA Department of Labor & Industries sends you a rate notice containing your WC rates. You may check the WA Verify Workers' Comp Premium Status: Account Businesses website, enter your UBI account number, and your rates will be displayed under Risk Classification.

Example Rate Notice

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Enter WC information into Intuit Online Payroll Enhanced/QuickBooks Online Payroll Enhanced

Go to the WA WC Tax setup window

  1. Choose Setup, then select Tax Setup (for Quickbooks Online Payroll Enhanced: Select Employees, go to Payroll Setup, then select Tax Setup).
  2. Select the WA Workers Compensation Tax. Enter the following information:
    • Class: First 4 digits of the Class Code, before the hyphen.
    • Subclass: Second set of digits, after the hyphen on the Class Code.
    • Nature of work: Listed as the Class Code Description on the rate notice.
    • Composite rate: The total rate: Employer + Employee.
    • Payroll Deduction: This is the employee rate and determines what is withheld from employee checks.
    • Effective date

Note:

  • Intuits' system automatically calculates the employer rate by subtracting the payroll deduction rate from the composite rate.
  • Do not delete your WA WC rate. The only valid reason to delete WA WC rate is if it was incorrectly entered, and you haven't created paychecks using the incorrect rate. If there's a new rate provided by your state, enter the new rate and effective date.

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Assign WC Classes to employees

Note: You can only assign 1 class per employee, which means you can only use 1 WC rate per employee.

Intuit Online Payroll Enhanced

  1. Go to Employees.
  2. Select the employee's name.
  3. In the Taxes and Exemptions section, select Edit.
  4. In the Workers' Compensation Information section, choose from the Class and Subclass drop-down and make your selection. For additional help in completing these fields, refer to the Setup section above.
  5. Select OK.

QuickBooks Online Payroll Enhanced

  1. Select Workers from the left menu, then choose Employees.
  2. Choose the employee's name.
  3. Select Pencil icon beside the Pay section.
  4. Scroll down and select Enter Workers' Comp Info.
  5. Enter the information needed, then select Done. For additional help in completing these fields, refer to the Setup section above.

Filing Form WA F212-055-000

You'll submit your quarterly report for industrial insurance during the month following the quarter-end. Intuit worksheet should be used as a guide to complete the original Form F212-055-000 sent to you by the L&I agency and will also contain the exact due date. The worksheet should NOT be submitted. L&I accepts only the original form.Note: The final amount shown on the worksheet might slightly differ from the total of individual paycheck calculations. This difference is due to rounding the tax amounts on each paycheck to the nearest penny. The amount shown on the worksheet should be used to complete Form F212-055-000.

Calculate Workers' Compensation

Hourly employees

Note: Only use actual hours worked when determining hours for this calculation. Vacation, sick, holiday pay and so on, should not be counted, even if it's paid leave.

Workers' Comp = Rate x Hours Worked

Example:

  • 80 hours are worked during the pay period.
  • Payroll deduction rate: 0.59695
  • Composite rate: 3.3423

Payroll Deduction

80 x 0.59695 = 47.76 (amount withheld from the employee's check)

Company Contribution

  • Composite rate (3.3423) - Payroll deduction rate (0.59695) = Employer rate (2.74535)
  • 80 x 2.74535 = 219.63

Commission Employees

Notes:

  • Only use actual hours worked when determining hours for this calculation. Vacation, sick, holiday pay and so on, should not be counted, even if it's paid leave.
  • We don't support the WC calculation for an employee who is primarily hourly, but also receives secondary commission pay that has hours attached.
  • Online Payroll requires hours to be entered in addition to commission pay. The WC calculation is based on the hours entered and the calculation is then the same as hourly employees.

Example:

  • 80 hours are entered for the pay period.
  • Payroll deduction rate: 0.59695
  • Composite rate: 3.3423

Payroll Deduction

80 x 0.59695 = 47.76 (amount withheld from the employee's check)

Company Contribution

  • Composite rate (3.3423) - Payroll deduction rate (0.59695) = Employer rate (2.74535)
  • 80 x 2.74535 = 219.63

Salaried employees

WC = rate x 160 hours per month.WC is calculated on the first check of the month only.

According to WA L&I Regulations (page 4), salaried employee hours are calculated at 160 hours per month, or 480 hours per quarter. Online Payroll calculates WC on the employee's first paycheck of the month.

Example 1:

  • Check dated 01/01/2012
  • 86.67 hours are worked during the pay period.
  • Payroll deduction rate: 0.59695
  • Composite rate: 3.3423

Payroll Deduction

160 x 0.59695 = 91.12 (amount withheld from the employee's check)

Company Contribution

  • Composite rate (3.3423) - Payroll deduction rate (0.59695) = Employer rate (2.74535)
  • 160 x 2.74535 = 439.26

Example 2:

  • Check dated 01/15/2012
  • 86.67 hours are worked during the pay period.

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