Washington state has L&I insurance withholding and a company match. The employee and company rates for L&I will vary based on job class and sub class. L&I rates are calculated on hours worked.
To set up L&I withholding:
Select Setup>Payroll Items.
Set up a Local Tax item.
Enter the Rate as a decimal.
Select Item(s) Qty in the Based On field.
Click the Items button.
Select the appropriate Item(s) and Department(s) if necessary.
Click OK.
Select the appropriated Liability Account from the drop down list.
Select the appropriate Payee in the Payable To field if you are writing the check for this liability.
Select Box 14 in the W2 Tracking field.
Enter WA L&I in the W2 Code field.
Enter the appropriate values for Class, Sub and Nature of Work.
Note: For clients with multiple Class or Subs, set up a separate L&I item for each Class or Sub. Use a separate department for wages for each Class or Sub. Enter the appropriate department in the Department field on the Based on Items screen for the L&I item.
To set up the employer’s portion of L&I:
Select Setup>Payroll Items.
Setup an Employer Accrual item.
Enter the Rate as a decimal.
Select Item(s) Qty in the Based On field.
Click the Items button.
Select the appropriate Item(s) and Department(s) if necessary.
Click OK.
Select the appropriate Expense Account from the drop down list.
Select the appropriate Liability Account from the drop down list.
Select the appropriate Payee in the Payable To field if you are writing the check for the liability.
Leave the W2 Tracking and W2 Code fields blank as the employer portion is not reported on the W2.
Enter the appropriate values for Class, Sub and Nature of Work.
Note: For clients with multiple Classes or Subs, set up a separate L&I item for each Class or Sub. Use a separate department for wages for each Class or Sub. Enter the appropriate department in the Department field on the Based on Items screen for the L&I item.
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