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Debrah2
September 1, 2023
Question

Paid Leave Oregon Default 1% - Need to Change for Equivalent Plan

  • September 1, 2023
  • 2 replies
  • 0 views

Oregon's rate for Paid Leave Oregon is set at 1%.  We have been approved to use an "equivalent plan" and our rate is not 1%.  I do not see how I can change this 1% to anything else.  I am now assuming that I need to just build a Payroll Item from scratch and name it something similar so that I can use my own premium amount instead of the 1%.  Anyone else run into this?

    2 replies

    M
    MirriamM
    September 2, 2023

    Hi there, Debrah2.

     

    I'm here to help you handle the Paid Leave in Oregon on your QuickBooks Desktop (QBDT) account.

     

    When using the equivalent plan, you can pay all or part of the employee portions of Paid Leave Oregon as a benefit to your employee. This is because these company-paid contributions are considered employee wages and should be treated as an employee-taxable fringe benefit, except from Paid Leave Oregon wages. 

     

    That said, you'll have to add a fringe benefit pay type to your employee profile and add it to their paycheck.

     

    To add fringe benefit, here's how:

     

    1. Go to the Lists on your QBDT account and select Payroll Item List.
    2. Choose Payroll Item and click New.
    3. Select Custom Setup.
    4. Click Addition, then Next.
    5. Enter a name for this item and click Next.
    6. Select an Expense account and Liability account and click Next.
    7. Select Fringe Benefits and click Next.
    8. Scroll down to OR - Paid Fam Med Leave Co. and OR - Paid Fam Med Leave Emp. Uncheck these. Select Next. 
    9. Select Neither. Select Next.
    10. Enter your default amounts and click Finish when done.

     

    For more details about tracking paid family and medical leave in Oregon in QBDT, see this article: Set up Paid Leave Oregon.

     

    For future reference, here's a handy article to help you manage employees' deductions: Set up, change, or delete employee-paid payroll deductions.

     

    Let me know if you still have more questions about managing payroll deductions and contributions or setting up payroll items. I'm always here to answer them for you. Have a great day!

    E
    ejcomfort
    September 21, 2023

    Will this solution interfere with Oregon OQ reports or how the payments show up on the W2?  It is my understanding that Paid Leave Equivalent plans still need to be on the OQ and the employee W2.

     

     

    AlcaeusF
    AlcaeusF
    September 21, 2023

    Hello again, ejcomfort.

     

    Thank you for keeping in touch with us regarding the steps shared above. Allow me to chime in and share more information about setting up Paid Leave Oregon in QuickBooks Desktop.

     

    QuickBooks is connected directly to your state and is up-to-date with any changes from the setup. These steps will not interfere with the reporting and ensure correct posting to Form W-2. The steps are also available in our article about Paid Leave Oregon: Set up Paid Leave Oregon.

     

    We've also compiled local tax resources and info you can use for Oregon. You can use this link to make sure you get the most accurate local tax jurisdictions and get the physical address for your employee's home and work locations: Set up local taxes in QuickBooks Online Payroll.

     

    You're welcome to post about your payroll concerns in this space. If you have additional questions about the payroll setup, let us know. We'll be here to lend a hand.

    S
    Stephanie222
    May 28, 2024

    Deborah,

    Is it possible to contact me? I am wondering if you ever found a solution to this issue? [email address removed]

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