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K
Kaceyt
December 30, 2022
Question

Washington state workers comp rates. Need help figuring out percentages.

  • December 30, 2022
  • 3 replies
  • 0 views

Hey all, hired my first employee and I am unsure on how to add the correct percentage for withholding. How do you find out the composite percentage rate and the payroll deduction percentage rate. The state sent me dollar amounts but I am unsure on how to convert to the correct percentages into the QB time portion. Any help would be greatly appreciated. Thanks. 

3 replies

T
TirzahC
December 30, 2022

Hello, Kaceyt. 

 

Changing your worker's compensation rate will also change the calculations for your employees. Let me add a few details and help you further.

 

In QuickBooks, we can only edit the rate and the effective date for the calculation to be correct. This said it'll apply directly to all your employees.

 

You may follow the steps bow on how to get there:

 

  1. Click the Gear icon at the upper right corner and then choose Payroll settings.
  2. Go to the Tax Setup tab.
  3. Select the state for Worker's Compensation Tax Setup.
  4. Hit on Edit to the class that contains the rate to be updated.
  5. Update the rate from the Composite Rate and Payroll Deduction box 
  6. Hit OK once done.

 

To give you more details about the Washington workers' compensation setup and calculations in the system, feel free to visit this link: Learn how to set up and calculate Washington Workers' Compensation.

 

Also, you may want to check this article for additional details: Learn about and get workers’ compensation insurance.

 

Please know that you can always post here if you have further concerns about WA Comp rates in QuickBooks. I'm always here to help you. Have a good one. 

R
Ros12
April 12, 2023

I am also having issues with this. My rates are hourly rates and in dollar amounts. How do I enter those on QBO. 

E
Ethel_A12
April 13, 2023

I'll help you set up your worker's compensation, @Ros12.

 

If you employ people in the state of Washington, you must carry workers' compensation insurance. The Washington State Department of Labor and Industries (WA L&I) is in charge of administering it.

 

The premiums on your employees' paychecks can be calculated using the classes and rates you set up for your WA workers' compensation. Then, as a reference, you can use our WA Workers' Comp Worksheet or a payroll report to assist you in making your premium payment and submitting Form WA F212-055-000 to the state on a quarterly basis.

 

You can start with obtaining your rates. Your rates can be found on the rate notification you get from the WA Department of Labor & Industries or online. When you enter your UBI account number, the Risk Classification section will display your rates.

 

You can then add a workers' comp class and rate to your employee. Please take note that each employee is limited to one class and pricing. You might need to manually compute the workers' compensation for your employee if they fall under more than one class and rate.

 

Here's how:

 

  1. From the left menu, go to Payroll, then Employees.
  2. Select your employee.
  3. From Workers' Comp, select Start or Edit.
  4. Select Yes, I have the tax rate.
  5. Select New workers' comp class or choose your existing class.
  6. Enter the following info:
    • Class: first 4 digits of the Class Code
    • Subclass: second set of digits on the Class Code
    • Nature of work (optional): listed as the Class Code Description on the rate notice
    • Composite rate: the total rate of Employer + Employee
    • Payroll deduction: the employee rate used to calculate the amount on your employee’s paycheck.
    • Effective date
  7. Select Done. You can now assign the same class or set up other classes for the rest of your employees.

 

You can read this article to learn more about the detailed process: Manage Washington (WA) workers' compensation.


Let me know if you have additional questions about worker's compensation. I'm always here to help. Have a great day.

R
RavenSolutionsfirm
January 23, 2024

Check out https://quickbooks.intuit.com/learn-support/en-us/employees-and-payroll/setting-up-worker-s-comp-for-washington-state/00/1308528.  AudreyP posted yesterday that she ignored the percent sign and entered the rates.  Her payroll calculated correctly.  I confirmed this solution works. QB needs to remove the percent sign for WA employees.

    J
    jaciet62
    September 4, 2024

    Has anyone figured out a work around for L&I or workers comp for Washington??  I see most comments are from the beginning of the year. I was hoping someone knew a trick. 

    C
    Carneil_C
    September 4, 2024

    Thanks for chiming in on this thread, @jaciet62.

     

    I can see how this benefits you and other users if QuickBooks (QBO) Payroll can enter dollar amounts in L&I for Washington Sate worker's compensation rates.

     

    Please know that this isn't possible at the moment. Thus, we follow formulas for calculations. If you haven't done so, please send this suggestion to our Product Developers so they can consider this feature in future product updates.

     

    Here's how:

     

    1. Click the Gear icon and choose Feedback.
    2. Enter your feedback Suggestion.
    3. Press Next.

     

    You can read this article to learn more about setting up, changing, paying, and filing WA workers' compensation (also called L&I) in QBO Payroll: Set up and manage Washington (WA) workers' compensation.

     

    I'm also adding this resource that might be useful if you want to run payroll reports in QBO to help you track your business: Run payroll reports in QuickBooks Online Payroll. 

     

    Please feel free to get in touch with me here for any additional questions about managing your payroll. The Community always has your back. Have a great day.

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