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A
AB206
December 5, 2022
Question

WA state Paid Family & Medical Leave change - when is the new rate in QBO settings? Jan 1 2023

  • December 5, 2022
  • 5 replies
  • 0 views

With less than 30 days left, you cannot manually change the defaults rate in QBO for Washington state paid family and medical leave tax. The new rate is starting up next month for 0.8% -- employers 27.24% and employees 72.76%.

 

Does anyone know when this will be in QBO? 

5 replies

G
Giovann_G
December 5, 2022

Thanks for reaching out to us, AB206.

 

Intuit constantly ensures that QuickBooks complies with state laws. Our Compliance Team is now coordinating with Washington State to have this program supported as soon as possible.

 

For now, we're unable to provide the exact date when it will be available. You'll be notified via email at the address associated with your Intuit account if there are any updates. Rest assured that the new update will be available before January 1, 2023 and you'll receive an email at the email address associated with your account. You can also go to the Settings icon to manually check the new rate and have it added when it becomes available.

 

Here's how:

 

  1. Go to Settings ⚙ and select Payroll Settings.
  2. Next to Washington tax, select Edit ✎ to view your rates.
  3. To adjust the rate, next to WA Paid Family and Medical Leave Premium ER Rates select Change or add new rate.
  4. From the dropdown menu, choose the new rate and enter an Effective Date.
  5. Once done, hit OK, then Done.

 

Refer to this article for more detailed information: Set up Washington Paid Family and Medical Leave.

 

You're welcome to reply if you have any other payroll questions. I'd be glad to keep helping you. Have a good day ahead!

M
ML55
January 5, 2023

I have called Intuit tech support as well on 1/3/22 regarding new 2023 rates for WA PFML. The tech. support was non-helpful. I wasted more than hour on the phone, she requested to upload WA ESD letter about new rates and, also, demanded E.I.N. to escalate the issue. She promised to solve it in one day. So far, nothing has been done nor I got any response from Intuit. As I see, Intuit developers knew about this issue for a long time and nothing has been done to sort it out. It is ridiculous.

 

I am relatively new to QB Online, at the same time, I have found a lot of issues with Intuit putting restrictions to do proper accounting. For example, QB calculates WA L&I taxes for salaried employees monthly based on full-time employment for any part-time salary employees. Intuit restrict to do any payroll corrections by users. I asked to fix this issue more than 6 months ago and it still undone. It is very interesting, that when I switch part-time salaried employee to hourly, QB shows correct hours on the  quarterly worksheet report and changes hours back to 480 when you switch back to salary. It is a huge glitch in software that nobody cares. When I call to do payroll corrections, majority of tech support do not know what to do.

I found some other issues, that tech support do not know how to fix and I have to do recurring adjusting J.E. to fix where I can.

 

    M
    mombo007
    January 5, 2023

    Those rates came out in October, there is no reason they shouldn't have been updated in QBO.  They were in QuickBooks desktop payroll, so it's not like they didn't know about it. 

    There are so many bugs and flaws in QBO. I know they want to migrate everyone to it, but it must be a better platform than what they currently have. I refuse to do it for most of my clients.  

    The fact that even in the QuickBooks Accountant version of QBO, payroll liabilities cannot be adjusted is completely idiotic.  If you call for help, no one even knows what you are talking about.  I get so tired of making offsetting entries in the checking account for these taxes.  It is confusing for my clients, and then I have to reconcile for them because they don't understand the adjustments.  

    I have been a fan of QuickBooks for many years, but they are alienating accounting professionals like me with their focus on making money instead of putting out a quality product.  

     

    M
    mombo007
    January 3, 2023

    Here it is January of 2023, and they still haven't made the change in QBO.  Just spent an hour on chat and they tell me there is no update.  All of the payrolls for this month will deduct last year's rate, and it will be a mess when it comes time to file 1st quarter.

    I say yet again, Quickbooks Online is one of the worst payroll programs I have ever seen.  I strongly encourage my clients to use something else.  

      B
      baker bandit
      January 5, 2023

      Also wondering why this has not been updated. Spent the last hour discovering this is out of my control. 

        A
        AB206Author
        January 5, 2023

        It is still not updated under the default rates as of 1/5/2023. I can reach out to QBO and check status. I do understand it is something they will need to change in their system with the new default rate and we can select the new rate from there.

         

        With this said, once QBO adds the new rate for selection, I will back date that rate to 1/1/2023 and adjust the payroll. 🙂

        M
        mombo007
        January 5, 2023

        You can't backdate a payroll tax rate if you have already done payroll in 2023.  It will only let you change it from that date on.  Plus, this is an employee deduction so you can't retroactively take the money from your employee. 

        The company will have to pay the difference until they make the correction in QBO, and when you go to pay your taxes, the amount will be off because of it and you will have to make a separate adjustment.

        A
        AB206Author
        January 5, 2023

        You are able to make rate adjustments to payroll rate and back date as long as it is in the same tax year. If you file a quarterly with the state ideally you want to adjust within this time frame so your quarterly is accurate with the correct rates. The back date will create a next payroll adjustment of either additional due or a credit depending on the adjustment. 

        A
        AB206Author
        January 26, 2023

        The new rates are now available in the default of QBO. I was just able to adjust payroll for the new rate which resulted in the employee deduction of around $2 to  make up for the starting 1/1/23 period.

        L
        LaFreniereCPA
        January 26, 2024

        I am here (mouse cursor on the Effective Date dropdown box, which is highlighted green).

        What do I click next to add my selection to the below Tax Rate listing?

        (Clicking the Save button exits the screen WITHOUT adding my selection to the listing.)

        AldritchM
        AldritchM
        January 26, 2024

        Hi there, @LaFreniereCPA.

         

        You can just hit save and if you're still not done modifying your State tax info you can go back anytime to Payroll settings to make changes.

         

        Additionally, I'd like to leave this article to learn how to set up, change, pay and file WA workers' compensation (also called L&I) in QuickBooks Payroll: Set up and manage Washington (WA) workers' compensation.

         

        If you have more questions about managing your payroll, don't hesitate to click the reply button. I'm always around to help!

        L
        LaFreniereCPA
        January 28, 2024

        Thank you for responding. As previously stated, when I click Save here, and then return to verify whether my selections were saved, it is clear that they did NOT save.

        Please advise what I must do to save my new rate selections. 

         

         

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