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December 30, 2021
Question

Washington Paid family leave 2022 tax change

  • December 30, 2021
  • 2 replies
  • 0 views

This question is for Intuit.

When are you going to update the Paid Family leave tax rate from .4% to .6%.  We cannot do it manually within QB and it needs to be changed asap or all of our tax calculations are going to be off.  When you do plan on handling this?

2 replies

December 31, 2021

Good day, @mombo007.

 

Let me help you update the Washington Paid family leave tax rate in QuickBooks Desktop (QBDT) Payroll. You have to option to manually change the tax rate for each employee in the program. Here's how:

 

  1. Go to Employees and select Employee Center.
  2. Double-click the employee's name to open the Edit Employee window.
  3. Select the Payroll Info tab and click Taxes.
  4. In the Taxes screen that pops up, select the Other tab.
  5. Make sure the Washington Paid Family Leave items are there.
    • WA – Paid Fam Med Leave Emp: Employee portion of the total insurance premium
    • WA – Paid Fam Med Leave Co: Employer portion of the total insurance premium will be added to the Payroll Item List.
  6. Select the tax to change the rate.
  7. Click OK twice to close the window.


For more info, you can check out this article: How to Change Washington Paid Family and Medical Leave for Each Employee in QuickBooks Desktop.

In case you're using the Full-Service Payroll, Intuit will pay and file this tax for you. To update the tax rate, contact them through chat. You can also connect with them by following the steps in this article: Contact Payroll Support.

 

Moreover, you check out the WA Paid Family & Medical Leave website and their Premiums Calculator to learn about your rates. The size of your company will determine how much you'll pay.

 

Please update me on how it goes or if need further assistance with the steps. I'll be more than happy to help. Have a nice day!

mombo007Author
December 31, 2021

Not what I asked, but this post might help someone else.

BigRedConsulting
December 31, 2021

@mombo007 

RE: When are you going to update the Paid Family leave tax rate from .4% to .6%.

 

The combined rate has already been updated to .6% for 2022.

 

Note that:

- The tax table can hold rates for multiple years. For example the current year and next year.

- You will see the current rate on the payroll items list - for today - based on your computer's system date.

- Once the year rolls to 2022 (tomorrow) you'll see the new rate / the rate that applies for 2022.

- If you have the current tax table, then the correct rate will be used on paychecks based on the payroll/paycheck date, regardless of what is displayed on the payroll items list.

 

- You can tell that the rate has been updated by reviewing your Tax Table Changes notice, which appears each time you get a new tax table.

To review it, select Employees from the QuickBooks menu, then Get Payroll Updates, then click Payroll Update Info. Then select the Tax Table tab and click Washington under the State and Local Tax Updates section. Using the current payroll update, you will see the notice, "The total contribution rate for WA - Paid Family and Medical Leave has increased to .6% from .4% effective 1/1/2022."

 

 

mombo007Author
December 31, 2021

I was very tired when I posted this and realized after the fact that it might not show up until the 1st.  Thank you for the clarification of where to find the details of what changed though.  

 

I find it interesting that they tell us form 940 has been updated in the update, but this is clearly still only printing in draft form.  Do you have any insight into when that will be addressed?

BigRedConsulting
December 31, 2021

No, I don't know about the 940's status.