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LIC5371
Level 2

Washington State Sick Leave and L&I Compensation Payroll Items Can't Uncheck for Employment Security Payments

Wow, I can't believe people have been complaining about being unable to uncheck a payroll item since 2020!!

This is costing Quickbook users a lot of money.

I was just audited by the state, and have been paying taxes on sick leave and L&I Compensation all along.  The auditor just told me this was incorrect (maybe some prior direction of WA State would have been helpful!).

Now I went in to correct this in my payroll item list, and it won't "uncheck" it. 

Worse than that, I come to the community for answers and it seems there are none!

It seems like a simple thing, let us uncheck so we can pay taxes correctly.

 

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6 Comments 6
BigRedConsulting
Community Champion

Washington State Sick Leave and L&I Compensation Payroll Items Can't Uncheck for Employment Security Payments

Yes, QuickBooks has always done this, for at least that last 25 years or so.

 

As I understand it the taxes are very small. You mention it cost you a lot of money. How much is a lot?

 

In any case, going forward now that you know about it you can work around it by reducing the taxable wages for the tax at filing time and also paying less when you pay the tax and then adjusting the balance away.  Not ideal, but if it's costing you a lot of money, perhaps it's worth it.

LIC5371
Level 2

Washington State Sick Leave and L&I Compensation Payroll Items Can't Uncheck for Employment Security Payments

Not terribly helpful.  I've used QB for 37 years, and sure, I can do the report by hand and take out all the stuff that doesn't need to be reported.  But then what's the point of QB?

PEITA-HTR
Level 2

Washington State Sick Leave and L&I Compensation Payroll Items Can't Uncheck for Employment Security Payments

I totally agree with you. I have been trying to uncheck the sick time etc. in my state unemployment payroll item. why can't it be done?!

PEITA-HTR
Level 2

Washington State Sick Leave and L&I Compensation Payroll Items Can't Uncheck for Employment Security Payments

how do we uncheck the tax compensation check list?

RheaMaeH
QuickBooks Team

Washington State Sick Leave and L&I Compensation Payroll Items Can't Uncheck for Employment Security Payments

Your input in this thread is greatly valued, PEITA-HTR. Let me provide information regarding unchecking sick time in the payroll item in your QuickBooks Desktop (QBDT).

 

In QBDT, sick time is linked to state tax compliance, which means you cannot uncheck it if it's necessary for tax calculations. As a workaround, consider following @BigRedConsulting's suggestion to lower the taxable wages during the filing period. This approach could lead to a lower payment when remitting taxes and adjusting any remaining balance. However, it's advisable to consult a tax advisor or accountant to ensure this workaround aligns with your circumstances.

 

Here are some of the articles you'll want to check. These will show you how to display and print other info in the paystub in QuickBooks Desktop.

 

 

We're always here to help if you require further assistance managing sick time in your payroll items or have additional questions. Our team is ready to provide expert guidance tailored to your needs.

treetrucker13
Level 1

Washington State Sick Leave and L&I Compensation Payroll Items Can't Uncheck for Employment Security Payments

I too, was audited and told the same. At the time that Sick pay was made mandatory, the state had no "ruling" on whether or not it was considered taxable compensation for that sick pay, so they initially were telling everyone to include it as wages. They later created a ruling authority, or board, regarding sick pay governance,   which decided sick pay would NOT be included in taxable wages. So began the audits, and here we are.  Very frustrated that #quickbooks is not checking into this/correcting it, since its been going on for years now, and affects pretty much everyone, regardless if they are aware of it or not.

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