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Jan 9, 2023 10:14 PM UTC
Question

Washington State L&I

I ran my first payroll today and the L&I tax was calculated based on all hours. We had employees with sick, vacation and holiday pay (yes our holiday pay is it's own code). I need to know how to get this tax to only calculate on hours worked please.

12 replies

BigRedConsulting
Jan 9, 2023 10:20 PM UTC

Yes, that's the way QuickBooks does it. It's always been this way, and I guess it's hard to fix as they've never gotten to it.

ekeefeAuthor
Jan 9, 2023 10:23 PM UTC

Hmm, well that is unacceptable to me so I will have to manually adjust if this is truly the case.

Feb 7, 2023 5:49 AM UTC

If you figured out how to manually adjust it, can you please share?!

Feb 7, 2023 6:00 AM UTC

You should be able to unselect the sick, vacation and holiday in the L&I setup so it's not including those hours in the calculations.  You may need to override the hours on the paycheck if multiple workers comp codes are used though.

Feb 15, 2023 2:35 PM UTC

Any chance you have a go around like this for QB Online payroll?  There are very limited options in the set up process.

MJoy_D
Feb 15, 2023 3:23 PM UTC

Hello, @MollySkinner. 

 

Can you tell me more about the process that you're referring to? That will surely help us provide an accurate solution to the concern that you're having.

 

You can click the Reply button below to add more details.

 

I'm looking forward to hearing from you soon! Take care and have a wonderful day!

Apr 28, 2025 10:28 PM UTC

To not include Sick & Vacation Hours for L&I, edit the payroll item for L&I. In the window for "Calculate based on quantity," "Calculate this item based on hours," should be checked, and underneath ensure to uncheck the line that says, "Include Sick and Vacation hours." If it is already checked or if you have the same problem after unchecking "Include Sick and Vacation hours," check to make sure your payroll items for sick and vacation time are set up as type (Sick/Vacation).