I own a small business here in Oregon. We decided to pay the whole wbf assessment as opposed to splitting it with the employee. However looking at the info document that Oregon has provided for the workers benefit fund, it states “Normally, the employee portion of the WBF assessment withheld from the employee’s paycheck is not included on the form W-2 as “local taxes.” However, if the employer chooses to pay Workers’ Benefit Fund (WBF) Assessment
the employee’s portion of the WBF assessment rather than deduct it from the employee’s paycheck, the employer must include this amount as additional wages on line 1 and line 15 (state wages) of the form W-2 as a taxable fringe benefit.” How do I make sure that this is done correctly on the employees W-2. I have quickbooks desktop with enhanced payroll.
Could you explain a bit more? This is my first year having an employee. I am not sure how to do this in quickbooks and I just want to make sure the W2 is created correctly.
Hi there, 4wheeldriveparts.
Let me be the first to congratulate you on having your first employee. Allow me to step in for a moment and share some insight on that part of BRC's answer.
As was mentioned, well need to create an addition payroll item first and set it up as compensation. The steps below will guide you through that process:
To create an addition payroll item
- From the Lists menu, select Payroll Item List.
- Click the Payroll Item drop-down button, then choose New. You could also press CTRL + N.
- Select Custom Setup, then click Next.
- Follow the on-screen instructions on the corresponding pages:
- Payroll item type: Select Addition.
- Name used in paychecks and payroll reports: Enter a name for this payroll item, for example, OR - WBF Assessment.
- Expense account: QuickBooks will automatically enter Payroll Expenses. However, if you have a specified account for this, then you may go ahead and select that.
- Tax tracking type: Make sure to select Compensation.
- Taxes: Just click Next.
- Calculate based on quantity: If this isn't based on quantity and hours, then choose Neither.
- Gross vs. net: Select net pay to ensure that this won't affect the gross wages that'll appear on your forms.
- Default rate and limit: You can leave the Rate and Limit fields blank.
- Click Finish.
Next, we can add this item to your employee's payroll information, so you don't have to manually enter it every time you create a paycheck. Let me walk you through the steps on how to do this:
- From the Employees menu, select Employee Center.
- Double-click the employee's name.
- Go to the Payroll Info tab.
- In the Additions, Deductions, and Company Contributions section, add the WBF Assessment payroll item.
- Click the blank space under the Item Name column to bring out the drop-down menu. From there, click the drop-down arrow and select the payroll item.
- Click OK to save the changes.
All of this information and more is available from our guide on how to Set up payroll item.
That should do it! With these resources, I'm confident you'll be able to enter the Oregon WBF Assessment correctly in the employee's payroll check and on form W-2.
Keep in touch with me here if there's anything else you need. I always got your back. Thanks for reaching out, wishing you and your business the best.
Thank you for answering my question and providing me with instructions. I appreciate it.
I was able to follow all of the instructions except for when it got to the last three steps:
" Calculate based on quantity: If this isn't based on quantity and hours, then choose Neither." I believe the WBF assessment is based off of hours worked including overtime. So would i select hours then?
"Gross vs. net: Select net pay to ensure that this won't affect the gross wages that'll appear on your forms." It didn't give me this option.
"Default rate and limit: You can leave the Rate and Limit fields blank. " It also didn't give me this option.
I tested to make sure that I did this correctly by pulling up the next payroll check and I am not sure if it looks right. When I open up paycheck hours, In the left middle column it shows "Name: OR-WBF assessment, Rate: .014%, Quantity: total hours worked" And then below that line it shows: "Name: OR-WBF assessment Company, Rate: .028%, Quantity: total hours worked".
And then in the employee summary section when it comes to both the "OR-WBF assessment" and "OR-WBF company" it shows $0.00. Is that correct? The company summary shows the correct amount for just the "OR-WBF company".
Any help you can provide I would greatly appreciate it. I just want to make sure I am doing this correctly.
Allow to join in this conversation, 4wheeldriveparts.
It's best to contact our Payroll Support Team so they can review how was the item set up and make sure it's calculating correctly. Here's how to reach out to them:
- Open this link: https://payroll.intuit.com/support/contact/?infosrc=qs&service=16.
- Click Payroll, then click View Contact Info.
Visit us again in the Community if you have other questions.