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pegster
Level 2

QB incorrectly calculates my hours for the oregon wbf tax.

 am in Oregon. I noticed that QB is calculating hours for the wbf tax by adding hours worked plus holiday. It should be just hours worked.

10 Comments
BettyJaneB
QuickBooks Team

QB incorrectly calculates my hours for the oregon wbf tax.

Hey there, @pegster.

 

Having your Oregon WBF tax to calculate correctly is my priority. Let's get this sorted out.

 

QuickBooks will calculate taxes based on the information and hours that you've entered on the earnings section of your employees' paycheck. To learn more about the Oregon WBF tax calculation, you may refer to this article: Set up or change Oregon Worker Benefit Fund (OR WBF).

 

Also, It'd be best running a payroll update every time you do payroll for your employees to ensure that your tax table is updated to the latest release. 

 

To do that:

  1. Go to the Employees menu, then select Get Payroll Updates.
  2. Put a check in the Download Entire Update checkbox.
  3. Select Download Latest Update.
  4. A window appears when the download is complete.

For complete details about payroll updates in QuickBooks, please see this link: Download the latest payroll tax table.

 

Lastly, here are some helpful information about the holiday pay and taxable compensation in QuickBooks for your future reference. 

 

If you need further assistance with this process, feel free to reach out to our Customer Care Team. 

 

Of course, you still got me here if there's anything you need with this concern. I'd be pleased to help you out. Have a great day.

pegster
Level 2

QB incorrectly calculates my hours for the oregon wbf tax.

Thanks BettyJaneB for your reply.

The holiday pay is taxable.  QB will not let me change it for wbf payroll item.

pegster
Level 2

QB incorrectly calculates my hours for the oregon wbf tax.

Thanks for your reply BettyJaneB,

Holiday pay is taxable.  QB will not let me change it in the payroll item list under WBF.

BettyJaneB
QuickBooks Team

QB incorrectly calculates my hours for the oregon wbf tax.

I appreciate your prompt response, @pegster.

 

Allow me to provide additional clarifications about fixing your Oregon WBF tax calculation. 

 

If you want to exclude the holiday pay to be included in the taxability of Oregon WBF, this option isn't available for us. This is because QuickBooks tax calculation will depend on the item type. Since a holiday pay is a compensation, automatically it will be added as taxable.


In situations like this, I'd suggest reaching out to your accountant to ensure the best course of action for your business.

 

Let me know if you have any other questions. I'll make sure your taken care of. 

ZeroKing
Level 1

QB incorrectly calculates my hours for the oregon wbf tax.

Betty -

 

I too notice that Quickbooks will not allow holiday pay to be deselected as taxable within a particular state tax set up (i.e. WA Dept of Labor & Industries).  However, per the WA DLI holiday pay is NOT taxable.  Quickbooks needs to figure out away to allow for customers to adjust this.  We should be able to make holiday pay nontaxable for certain kinds of state taxes.  Also, Quickbooks is accruing paid sick leave based on holiday hours.  This is incorrect as well.  Per the state of WA, paid sick leave is accrued on hours WORKED only, not holiday pay.  Why can't Quickbooks change holiday pay so that it acts like sick/vacation?

JamesDuanT
Moderator

QB incorrectly calculates my hours for the oregon wbf tax.

Thanks for sharing your knowledge about the holiday pays, ZeroKing,

 

Holiday Pay type is tagged as a taxable item in QuickBooks Online. The workaround in this scenario is to create a non-taxable addition item for your holiday pays.

  1. Select Workers on the left menu and go to the Employees tab.
  2. Click the employee name and go to the Employee details section.
  3. Click the pencil icon next to Pay.
  4. Under the How much do you pay (employee name? section, select Add additional pay types.
  5. Mark the Reimbursement box and click the pencil icon to change the item name.
  6. Click Done.

You can use this item when creating your paychecks with holiday pays. You can also create a separate paycheck using it.

 

We'll share your feedback with our Product Development Team about the holiday pay type. They'll evaluate this option and put it into consideration for product updates.

 

Feel free to let us know if you have clarifications about it.

how do I print a vendor credit
Level 2

QB incorrectly calculates my hours for the oregon wbf tax.

Really!? This is the work around.  QB needs to address this issue as the employer is taking deductions from the employees paychecks that are not being paid to the state.  Does not look good.  I would think now employers have to reimburse the employee for those deductions yes?

IrSteve
Level 3

QB incorrectly calculates my hours for the oregon wbf tax.

What?! O_O Please delete your suggestion to make Holiday a reimbursement.

 

Holiday is not a reimbursement. Holiday wages are still taxable for every tax out there and reimbursements would exclude them from those taxes resulting in underpaying and misreporting. It's only the hours that aren't. Do you burn down the house to kill a spider?

BigRedConsulting
Community Champion

QB incorrectly calculates my hours for the oregon wbf tax.

Are you referring to vacation pay?  I ask as there's no such thing as holiday pay in QuickBooks (pay for actual holidays your company may be closed) and so there's no way QuickBooks could not tax it (because if can't see it.)

 

If you mean vacation pay, my understanding is that QuickBooks has always taxed that for some Oregon (and Washington) taxes even though it is not required.

IrSteve
Level 3

QB incorrectly calculates my hours for the oregon wbf tax.

Right now the only option is to make Holiday regular pay so it's treated like worked hours. Really any payroll item that is calculated using hours that isn't sick or vacation and is not hours worked will throw the Oregon WBF tax off on paychecks and the OQ and the SUTA hours on the 132. I'm not sure it has ever not had issues with this.

I haven't heard about vacation, what's off on that?

Edit: Wait what I said still stands, but I was replying to making Holiday a reimbursement, excluding the wages from all taxes... you aren't suggesting that is how you do it are you?

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