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Washington workers' compensation setup and calculations

Learn how to set up and calculate Washington  Workers' Compensation.

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 for this tax. Intuit Online Payroll Enhanced, Intuit Online Payroll Full Service, and QuickBooks Online Payroll (all versions) provide a worksheet help you prepare the original form provided by L&I.

Setting up Workers' Comp info

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.

  1. Go to Workers, then Employees.
  2. Select the employee's name.
  3. Select the Edit  ✎ icon next to Pay.
  4. Scroll down to the workers' comp section, then select +Enter workers' comp info.
  5. Select Yes, I have the tax rate and
  6. Enter the following info:
    • 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
    • Select Done.
    • Once added, you will be able to assign the same workers' comp info to other employees.
  1. Connect to a payroll expert to have these entered for you.
  2. Log in to your Intuit Online Payroll Full Service account.
  3. Go to the (?) Help section.
  4. Chat online or call us to connect with a payroll expert.
  1. Go to Setup.
  2. In the Taxes section, select State Taxes or State Taxes - WA if you have multiple states.
  3. Select OK, then Add Class and Subclass.
  4. Enter the following info:
    • 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.
  5. Select OK.

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

  1. Go to Workers, then Employees.
  2. Select the employee's name.
  3. Select the Edit  ✎ icon next to Pay.
  4. Scroll down to the workers' comp section, then select +Enter workers' comp info.
  5. Select Yes, I have the tax rate and choose an existing class from the Class and subclass ▼ dropdown.
  6. Select Done.
  1. Connect to a payroll expert to have these entered for you.
  2. Log in to your Intuit Online Payroll Full Service account.
  3. Go to the (?) Help section.
  4. Chat online or call us to connect with a payroll expert.
  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 ▼ dropdown and make your selection. For additional help in completing these fields, refer to the Setup section above.
  5. Select OK.

Understanding Workers' Comp calculation

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

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

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:

  • 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

Filing Form WA F212-055-000 and Paying Your Tax Liability

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.

You can also file and pay online through QuickFile or Claim & Account Center. Here's how you do it:

  1. Go to Taxes and select Payroll Tax.
  2. In the Forms section, select Quarterly Forms.
  1. Go to Taxes.
  2. Select Payroll Tax, then Forms.

This form becomes available by the 20th of the month following quarter-end. For example, for the first quarter (January - March), this form will be available on April 20th.

Go to the  Tax Records tab. This form becomes available by the 20th of the month following quarter-end. For example, for the first quarter (January - March), this form will be available on April 20th.
  1. Go to Taxes & Forms.
  2. In the Forms section, select Quarterly Forms.
The rate used on the worksheet is based on the rate(s) currently set in your Online Payroll account. Be sure to review the worksheet for accuracy and use only as a guide when filing your form.

You have 2 options to pay and file online: Using QuickFile or Claim & Account Center:

  • QuickFile - allows any person with the L&I Account ID and WA UBI to file and pay online. No electronic records available.
  • Claim & Account Center - requires a unique User ID and password. Allows to pay and file online. Electronic records available.
Item or task QuickFile Claim & Account Center
URL http://www.lni.wa.gov/ClaimsIns/Insurance/File/Online/default.asp?Pub=QuickFile https://secure.lni.wa.gov/home/
Signing in No sign in required. Simply enter your L&I Account ID and WA UBI number. Sign up required. Requires unique User ID and password.
Fees Free Free
Filing and paying
  • Easy plug and go data entry.
  • Payment amount calculated for you.
  • Payment options available.
  • Easy plug and go data entry.
  • Payment amount calculated for you.
  • Payment options available.
Records No records of previous filings or payments.However, can print a copy of the current report being filed after data entry and payment are complete. Electronic records available of previous filings and payments.
File late returns Not available Available
Amend returns Not available Available
Ordering service for employers Not available Available
File and track claims Not available Available

Contact the Washington State Department of Labor & Industries (L&I) directly for any additional questions or assistance in filing your return.

Contact WebSupport@Lni.wa.gov or call 360.902.5999 (Weekdays 8 AM to 5 PM PT).

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