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Jan 9, 2023 11:54 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.

3 replies

BigRedConsulting
Jan 10, 2023 12:48 AM UTC

Yes, that's the way QuickBooks does it. It's been this way from the beginning. I suppose it's hard to fix or they would have. Luckily, the tax is tiny and so it doesn't matter much.

ekeefeAuthor
Jan 10, 2023 4:41 PM UTC

It doesn't matter much? To over charge your employees? That answer would not fly in an audit. I have worked with many software programs where the calculation is correct. This can not be a hard fix.

Jan 12, 2023 10:56 PM UTC

Apparently it is hard to fix because of the way Washington does their L&I.  Apparently we are the only state that calculates it based on hours rather than dollars.