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M
MMM Consulting
October 20, 2023
Question

WA Cares Premium Incorrectly Includes Tips

  • October 20, 2023
  • 1 reply
  • 0 views

Who else filed their quarterly WA Cares quarterly filing and found out you collected too much because QuickBooks calculated the premium based on gross wages including tips? Not sure how to correct this but should be fun considering QuickBooks said don’t worry we got you only to not have us. 🙂

1 reply

R
RCV
October 20, 2023

Let me share some insights about Washington Paid Family and Medical Leave insurance premium, MMM Consulting.

 

Washington Paid Family Leave does not include any tipped wages. If you have any tipped employees or income, they will require payroll adjustments to ensure the tipped income is not included in the reported wages. We'll need to review first if the rate entered is correct to avoid wrong calculations. Here's how:

 

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

 

If the set up is right, please contact our Payroll Support Team to help you with payroll adjustments. They will help you ensure the tipped income is not included in the reported wages. Here's how to reach them:

 

  1. Go to Help (?) on the top menu. 
  2. Select either tab to get started
  3. Choose Assistant: Get quick, personalized answers. Select a suggested option, or type a question or topic you need help with. If you decide you need further help, you can still Talk to a human.
  4. Select Search: Search the QuickBooks Online knowledge base directly, or select Contact Us 
  5. .Choose a way to connect with us:
  • Start a chat with a support expert.
  • Get a callback from the next available expert.

 

You can reach out to them through this link and ensure to review their Support hours to know when agents are available: QuickBooks Online Support. You can also check this resource for more details: Set up your Washington Paid Family and Medical Leave insurance premiums.

 

Once everything is settled, you can confidently run your payroll in the future.

 

Let me know if there’s anything else I can help you in managing your taxes or your account. I’m only a few clicks away from you. You have a good one. 

M
MMM ConsultingAuthor
October 20, 2023

Agreed shouldn’t include tips. However, the PFML premium works just fine. However the new Cares should act the same but does not. In the settings QB has a hard coded rate. I can’t adjust the rate that is set in there at .58%. QB said as an online Payroll I needed to do nothing it would work. So when it didn’t I am a little confused. You think if QB can have PFML calculate correctly then the Cares tax would be no different. 

    L
    LeizylM
    October 20, 2023

    I understand your confusion regarding the FMLA premium and the Cares tax calculations in QuickBooks (QB) Online Payroll, MMM Consulting. I'll point you in the right direction to address this concern right away. 

     

    In this case, it's important to note that certain tax rates and settings in QBO are hard-coded and cannot be adjusted by users. To make the necessary adjustments, I'd suggest contacting our Payroll Support Team. They have the necessary tools to check your account and ensure that the Care tax is calculated correctly. You follow the steps provided by my colleague above on how to reach them.  

     

    I've added this article to learn more about managing paid family and medical leave in Washington and Washington Cares Fund payroll tax in QuickBooks:

     

     

    Don't hesitate to post here in the Community for further assistance. I'm always here to help and ensure that your payroll calculations are accurate. Take care. 

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