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Senior Explorer *

WA Paid Family and Medical Leave

Greetings

 

Please advise appropriate payroll service solution for Washington State Paid Family and Medical Leave in the following circumstance:

    Employer with under 50 employees (NOT required to pay employer portion) AND

    Employer choosing to pay the Employee portion of the tax.

 

So far, the offered solutions seem not to have addressed this option.

43 Comments
QuickBooks Team

Re: WA Paid Family and Medical Leave

Good day, @drgurney.


Thank you for posting in the Community. I’m here to share a few details about QuickBooks Online Payroll supporting WA Paid Family and Medical Leave.


Good news! QBO Payroll will be supporting this new deduction and will begin auto-calculating on paychecks dated on 1/1/2019 and moving forward.


You will receive a detailed communication by 12/17/2018 explaining the new tax. If you have questions regarding the details of the policy, you can visit the website for review: https://paidleave.wa.gov/employers.


If you’re using Intuit Full Service Payroll, please give our phone support a call for more information about adjusting the deduction rate. You can find their most updated contact number through this link: https://community.intuit.com/browse/standalone-intuit-payroll-contact-us.


That’s it. Should you need anything else, please let me know. I’ll be around to help. Enjoy your day!

Senior Explorer *

Re: WA Paid Family and Medical Leave

I have carefully reviewed all available information from Intuit Payroll and cannot find an answer to my question.

 

I called Payroll Support and they could not give me an answer to my question.

 

The question, reiterated and expanded is this:

 

How to set up payroll for Washington State Paid Family and Medical Leave Act in the following circumstances:

 

  Employer has fewer than 50 employees and is exempt from paying the Employer portion of the tax (0% of 0.4% premium)

 

  Employee portion of the tax (63% of 0.4% premium) will be paid by the Employer as allowed by law

 

The current documentation does not seem to support these circumstances. Please advise correct procedure.

 

 

QuickBooks Team

Re: WA Paid Family and Medical Leave

Hello there, @dnneuen.

 

Allow me to add more information on how QuickBooks handles the new statewide insurance plan.

 

This update will automatically be implemented in the system and will take effect on your 2019 your employee’s payroll check. Once you’ll run a paycheck, it will auto-calculate the appropriate deductions.

 

On the other hand, the ability to set up your WA State Tax manually will be available on or after January 1, 2019. If your employee has a tax-exempt status, you can add it  under the employee’s individual profile under “Taxes and Exemptions.

 

Regarding your exemption status as an employer, I’d recommend reaching out to Washington State Tax agency so you’ll be guided accurately on setting it up on your account.

Please feel free to drop a comment below if you have other questions about setting up your state tax information. I’m always here to help.

Senior Explorer *

Re: WA Paid Family and Medical Leave

You wrote: Regarding your exemption status as an employer, I’d recommend reaching out to Washington State Tax agency so you’ll be guided accurately on setting it up on your account.

 

This website you cited refers to the Washington State Department of Revenue which does not administer the Paid Family and Medical Leave Act.

 

The department administering this act is the Washington State Employment Security Department.

Moderator

Re: WA Paid Family and Medical Leave

Thanks for getting back to us, dnneuen,

 

Allow me to chime into this conversation.

 

You're right. Washington's Paid Family and Medical Leave program is being administered by your state's Employment Security Department (ESD). As discussed by my peers @KhimG and @juVielL, Intuit will be releasing an official communication detailing how QuickBooks will support with tax.

 

If you have any questions related to policies and tax reporting, I'd recommend getting in touch with the Employment Security Department. There they can provide you with in-depth information on how this tax should work for you and your employees, including special tax situations.

 

This State article might help you too, kindly check it out here: https://esd.wa.gov/paid-family-medical-leave/premiums

 

Please stay tuned to our payroll updates, @dnneuen. I'm here if you need further assistance. Have a great day ahead.

Senior Explorer *

Re: WA Paid Family and Medical Leave

I am nowhere nearer to an answer than when I first posted.

 

I have read the Revised Code of Washington Title 50A Family and Medical Leave Program.

 

I have read the Washington Administrative Code 192-500 and following regarding Paid Family and Medical Leave.

 

I have read the material on the Washington Employment Security Department website regarding Paid Family and Medical Leave.

 

I believe I have a reasonable understanding of the law, codes, rules and regulations.

 

I have serious doubts that Intuit's application as currently released adequately addresses one specific aspect of the law, codes, rules and regulations. I have serious doubts that the application will work properly for employers 1) with fewer than 50 employees (who are not required to pay the employer portion) and 2) who choose to pay the employee portion.

 

Perhaps updates will be released at a later time.

 

But for now, no one at Intuit--either in this Community or on the telephone help desk--not one person has given me a straight solution to the problem.

 

Perhaps I am the only one with this problem. But as the law allows these elections, shouldn't Intuit's application address them?

 

Obviously I am extremely frustrated.

 

Please do not respond unless you have a specific instructions for the solution to the problem.

QuickBooks Team

Re: WA Paid Family and Medical Leave

Hi there, dnneuen.

 

Thanks for getting back to us. Allow me to address your concerns and provide some insights about Washington Paid Family and Medical Leave. 

 

All the information provided by my colleagues above are based on the tax regulations and policies of your state agency. At the moment, we're still waiting for an update from our engineers on how to set up the Washington Paid Family Leave filing and payments in Intuit Online Payroll.


For additional information, you can check this article about Washington Paid Family and Medical Leave (New Tax 2019).


To set up a payroll item for Washington Paid Family and Medical Leave, here’s how: 

  1. Select the Setup tab.
  2. Click the State Taxes - WA.
  3. Scroll down to the Paid Family Medical and Leave Premium ER item.
  4. From the drop-down menu, choose the rate corresponding to your responsibility from the Employee & Employers rate section above.

If you need further assistance with the steps, I encourage you to contact our Intuit Online Support Team. They have additional tools to pull up your account in a secure environment and do a remote session. 


Here’s how you can contact our support: 

  1. Click this link: https://payroll.intuit.com/support/contact/.
  2. Select your payroll subscription.
  3. Choose Payroll for the topic.
  4. Click View Contact Info to get the phone number. 

If you have additional questions about WA Paid Family and Medical Leave don't hesitate to leave a comment below. Have a good one.

Active Member

Re: WA Paid Family and Medical Leave

I was having the same issue as Dnneuen.  We are a small company with fewer that 50 employees and the Company would like to pay for the employee portion of the tax. There is no direct option for this in QB (even with the payroll update), but I believe I have come up with a solution to the issue (this solution is for the Desktop version of QB, not sure if it would work for the online version).  I added the WA Paid Fam. Med Leave CO to each employee's payroll "other tax" category (where the medicare Employee Addl Tax is added to each employee).  Below that in the Co. Portion Rate, I put in 63%. Then I did a test paycheck for January to see how much came out of the paycheck for the item.  According to my calculations, it comes out with the correct amount to be held for the "employee portion" that the company will pay for, and it does not deduct it from the employee paycheck (as it would if you were to use the Employee line item). 

 

Hope this makes sense and helps resolve the issue!

QuickBooks Team

Re: WA Paid Family and Medical Leave

Hi there, @nweller.

 

Thanks for joining this thread. 

 

I appreciate you for sharing the option on how to resolve the issue on how to deduct the employee's tax for WA Paid Family and Medical Leave. Please know that you're always welcome to post in QuickBooks Community if you have any other concerns. 

 

Wishing you and your business continued success. 

Active Member

Re: WA Paid Family and Medical Leave

I use the desktop payroll for Quickbooks pro 2016.  It said if I updated the payroll I would get an add payroll item tool that will add two new payroll items. It does not show up. So I am not sure if I am supposed to manually add the WA-Paid Fam Med Leave deductions or ?

 

QuickBooks Team

Re: WA Paid Family and Medical Leave

Thanks for joining this thread, @RenePower.

 

Allow me to step in for a moment and help make sure that you can add the new WA Paid Family and Medical Leave payroll items in your QuickBooks Desktop (QBDT) Pro 2016.

 

If your payroll tax table is already the latest version and you're unable to get the Add Payroll Item tool to pop-up after the update, you can manually add those payroll items and the rate of each employee in the Employee Center at the same time.

 

Here's how:

 

1. Go to Employees menu at the top, then pick Employee Center on the drop-down.
2. Double-click the name of the employee, then select Payroll Info on the left panel.
3. Click Taxes on the upper right, then in the Taxes screen pop-up, select Other tab.
4. On the ITEM NAME drop-down, choose Add New.
5. On the Other tax, locate the WA – Paid Fam Med Leave Emp then Next and Finish.
6. Select Add New again and locate WA – Paid Fam Med Leave Co, then Next and Finish.

 

 

Once the payroll items are added, you can now add the rate. Here's how:

 

1. On the same screen (Other tab), click each payroll item.
2. In the Co. Portion Rate field, enter the company share of the premium portion rate as a whole number (no decimals). 
3. In the Emp. Portion Rate field, enter the employee share of the premium portion rate (no decimals).

 

 

 

For more information, you can also check out this article: Washington Paid Family and Medical Leave (New Tax 2019).

 

That should help you add the new WA Paid Family and Medical Leave payroll items.

 

Please let me know how it goes or if I can be of additional assistance. I'll be here if you have any follow-up concerns. Take care and have an awesome weekend!

Senior Explorer *

Re: WA Paid Family and Medical Leave

To NWeller:

  • Thanks for your thoughtful solution.

To the Intuit Software Engineers:

  • Request:
    • Please validate and provide assurance that  NWeller's solution will work when it comes to reporting time in April.
      • In particular, I want assurances that when April comes, the Intuit generated reports to the Employment Security Department (ESD) will assign premiums properly for the parameters and solution below.
    • If NWeller's solution will not be properly reported to ESD, please provide an appropriate solution.
  • Background:
    • Parameters: NWeller's company has the following characteristics
      • Company Portion: The Company has fewer than 50 employees ans is NOT required to pay the Employer portion of the premium.
        • For Employers with 50 employees or more, the Employer portion is 36.67% of the total 0.4% tax.
        • For Employers with fewer than 50 employees, the Employer portion is 0.00% of the total 0.4% tax.
      • Employee Portion: The Company has decided to pay the Employee portion of the premium on behalf of the Employee (the Employee portion is 63.33% of the total 0.4% tax)
    • NWeller's Solution: NWeller's solution includes the following
      • Employee Portion: She did not set up a Payroll Item for the Employee portion because there will be no deduction from the Employee's paycheck (the Company is paying the Employee's portion of the tax).
      • Company Portion: She used the Payroll Item for the Company portion and set the share at 63% (the same amount as the Employee portion).
        • This calculates the Employee portion correctly, but identifies it as a Company paid tax and not as a deduction from the Employee's paycheck.
  • Discussion:
    • Please provide assurance that NWeller's solution will get reported to ESD properly.
    • If NWeller's solution will not be properly reported to ESD, please provide an appropriate solution.
Moderator

Re: WA Paid Family and Medical Leave

Good day, @dnneuen,

 

Thanks for joining the conversation and for sharing your suggestion with us.

 

I'm glad you found this thread helpful. We value your willingness to help us improve our products, so I'd recommend submitting this suggestions to our developers. Doing this helps them understand where we can improve and what features should be added so we can better serve you.

 

In order for them to account your suggestions, please follow these steps on your QuickBooks Desktop account:

  1. Click the Help menu bar.
  2. Scroll down to Send Feedback Online.
  3. Select Product Suggestion.
  4. Choose Product Suggestion for the Type of Feedback.
  5. Product Area is optional.
  6. Enter your suggestion.
  7. Click Send Feedback.

That should do it, @dnneuen. I'll do the same thing in my end to reinforce your request.

 

Please let me know if you need further assistance with your QuickBooks account. I'm here to help you out whenever you needed me. Have a great day!

Senior Explorer *

Re: WA Paid Family and Medical Leave

JenD

 

I sent my post as a product suggestion.

 

Thanks for your involvement.

Community Contributor **

Re: WA Paid Family and Medical Leave

As of today (1/1/2019) QB Online still has NO way for the employer to cover the employee premium as allowed by the statute.  I was on the phone with support for 45 minutes, and they confirmed this is not an option (the only options are for the employee portion to be withheld from their paycheck, with or without the employer contribution).  I have several employer clients who want this option. QB need to fix this ASAP, as they are out of compliance with the state law.  Fix this soon. 

QuickBooks Team

Re: WA Paid Family and Medical Leave

Hi bsquaredbooks, 

 

Thanks for sharing the details of your previous phone interaction. Allow me to provide additional insights about the WA Paid Family and Medical Leave premiums. 

 

As mentioned by my colleagues above, the Paid Family and Medical Leave tax will be supported in QuickBooks Online starting January 1, 2019. This will be taken out through payroll deductions and if applicable via company contributions. 

 

The set up available in QuickBooks Online would depend on the number of employees. Currently, you'll only be able to enter the employee portion with or without the employer contribution. 

 

Here's an article for more details:

 

Washington Paid Family and Medical Leave (New Tax 2019)

 

I'll personally let our product engineers know about how this additional option can be beneficial to your business. You can also let your voice be heard by going to the Gear icon, then selecting Send Feedback Online

 

Thank you again, it's feedback like this that empowers us to make QuickBooks the best software it can be.

 

Don't hesitate to approach me by adding a response below. I'd be delighted to answer them for you. 

 

Cheers to a more successful 2019! 

Community Contributor **

Re: WA Paid Family and Medical Leave

Vivien,

Thank you for the reply. We need this fixed as soon as possible; the Statue spells out that "Small business employers may withhold the employee share of the premium or opt to cover that premium as an added benefit".  Because this option is not available, QB Online is currently out of compliance with the statute.  Please take care of this directly.

Thank you for your attention to this matter.

Sincerely,

Brandy

Senior Explorer *

Re: WA Paid Family and Medical Leave

Brandy, Vivien, et al

 

For an unauthorized solution that allows an Employer with fewer than 50 Employees to cover the Employee portion while opting out of the Employer portion, see previous posts in this thread from NWeller (12/17/18) and DNNeuen (12/28/18).

 

While I can attest that this solution works for current paychecks, I have no assurances as yet from the software developers that the liability will be properly reported on the Quarterly Reports due to ESD in April (even though I have asked for such assurances).

 

Additionally, in order to provide clarity to this unauthorized solution, a certain Payroll Item might be renamed as follows:

  • From
    • WA – Paid Fam Med Leave Co
  • To
    • WA-Pd Fam Med Lv Co pays EE Shr
  • Note that some spaced have been eliminated in order to fit everything in.

Note that even though the Local description of the Payroll Item has changed, the Payroll Item Type  remains the same as can be seen when applying this tax.

 

The screen shot in the attached file may be of some help.

 

Others have created their own workarounds.

 

At this point, not only does Intuit need to provide an appropriate computing solution to allow compliance with all the options the law allows, but they also need to help us understand how to make our unauthorized solutions work with whatever they come up with.

 

From the traffic on the Community site, it is obvious that Intuit has overlooked an important option in the law and has failed to provide an appropriate solution.

 

David

 

 

 

 

QuickBooks Team

Re: WA Paid Family and Medical Leave

Thank you for your reply on this, Brandy.

 

Rest assured that our Compliance Team is closely working with your state. This is to get the new tax law for Washington working smoothly in QBO. We're collating all feedback from our customers to get you notified for updates. Please share your thoughts to our developers by following the steps provided by my colleague above.

 

I appreciate your feedback on this. Please let me know if there's anything else I can help you with.

Community Contributor **

Re: WA Paid Family and Medical Leave

David, have you tried to run payroll yet?  It seems like QB isn't going to allow payroll to be run in WA without one of the two options in their version of this payroll item selected (this was my experience today, anyway).  I ended up creating a reimbursement item to put the deduction back into the employee's checks for my work-around.  If you have run payroll since 1/1 using the above work around please let me know!

Thanks

Brandy

Senior Explorer *

Re: WA Paid Family and Medical Leave

Brandy

 

I have worked with two clients using this unauthorized solution and paychecks were created as expected (no employee deduction and an employer liability for the employee portion only).

 

Unknown is how this will play out when Intuit creates their interface for reporting to ESD in April. There could be major problems, especially if three months worth of paychecks will need to be reworked. But for now, the checks are running as one would hope.

 

Your reimbursement payroll item might make the employees whole, but Box 14 on the year end W-2's might not be correct (although the amount reported there seems to be for information only and probably does not affect employee taxes), and depending on how you set up the reimbursement, may or may not adjust the amount payable to the Washington State Employment Security Division.

 

If there is any consolation, ADP Payroll Processing is having similar teething problems with this tax, although they don't seem to be as severe as Intuit's. Intuit has really given themselves a black eye with their (mis) handling of the situation.

 

Judging from the message traffic on this thread alone, there is an extremely high level of frustration (tending toward anger) among the users.

 

David

Senior Explorer *

Re: WA Paid Family and Medical Leave

Brandy

 

See the attached screen shot for an example of the result of the unauthorized workaround previously discussed in this thread.

 

David

QuickBooks Team

Re: WA Paid Family and Medical Leave

Hello dnneuen,

 

It would be my pleasure to help answer any questions you may have about collecting Washington Paid Family and Medical Leave premiums.

 

If you elect to pay the employee's share of the premium, we can zero out the employee portion rate and add the amount to the company portion payroll item. You can modify the percentage by going to Employee Center or through the Payroll setup instead.

 

These steps are available from our article about this new tax: Washington Paid Family and Medical Leave (New Tax 2019).

 

You can also use a reimbursement payroll item to complete the payroll of the employee. However, it would be best to consult the state agency and confirm if the setup is correct.

 

Please keep in touch with me here if you need more assistance with the new tax. The Community will be around to help you out.
 

Community Contributor **

Re: WA Paid Family and Medical Leave

Thank you fellow Washington small business owners for bringing this problem to the attention of Intuit. We're having the same issue. It seems it would be a pretty simple fix to just add one more option on the drop-down menu, for employers who opt to pay the employee's portion of the tax. Or at least remove the restriction - and allow us to run payroll without requiring us to select a PFML rate at all. Same way the system allows us to NOT collect Workers Comp if we choose not to. Please help us out before we have to monkey around with payroll reimbursements and jerry-rigged fixes. Thanks.