Set up and manage Washington Paid Family and Medical Leave (2024)

by Intuit Updated 1 month ago

Learn how to set up QuickBooks Payroll to track paid family and medical leave in Washington.

Washington has implemented Paid Family and Medical Leave. All employers within the state of Washington State (with very few exceptions) must report your employees’ wages and hours and pay premiums each quarter. If you have full service payroll, we'll pay and file this tax for you.

How the Washington Paid Family and Medical Leave program works

Checkout the WA Paid Family & Medical Leave website and their Premiums Calculatorto learn about your rates. The size of your company will determine how much you'll pay.

Add Washington Paid Family and Medical Leave to your employees

  1. Go to Settings Set up and manage Washington Paid Family and Medical Leave (1), then Payroll settings.
  2. Next to Washington tax, select Edit ✎ to view your rates.
  3. In the Paid Family and Medical Leave section, select Edit.
  4. From the dropdown menu, choose the new rate and enter an Effective date.
  5. Select Save, then Done.

Taxes will deduct from your employees paychecks on the effective date.

Download and install the latest payroll update payroll update. When you add a new or an employee that is subject to Washington Paid Family leave, the tax will appear on the Other tab in the Taxes window. You can remove items or adjust the rates from this tab.

Important: If you’re asked during the interview if this rate is part of the UI rate, select No. The tool will create two new payroll items related to the WA tax.

Edit or delete Washington Paid Family and Medical Leave.

Edit Washington Paid Family and Medical Leave

To change the tax rates or effective dates for WA PFML, you'll need to add a brand new policy.

  1. Go to Settings Set up and manage Washington Paid Family and Medical Leave (2), then Payroll settings.
  2. Next to Washington tax, select Edit ✎ to view your rates.
  3. In the Paid Family and Medical Leave section, select Edit.
  4. From the dropdown menu, choose the new rate and enter an Effective date.
  5. Select Save, then Done.

Delete Washington Paid Family and Medical Leave

If the effective date of the new policy you want to add doesn't overlaps with the old ones, you don't have to delete the old rate.

  1. Go to Settings ⚙, then Payroll Settings.
  2. Next to Washington tax, select Edit ✎ to view your rates.
  3. In the Paid Family and Medical Leave section, select Edit.
  4. Select Delete next to the tax rate you want to remove.
  5. Select Yes, Delete to confirm action.
  6. Select Save, then Done.

Enter or change the tax rate for each employee

  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 select 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. Select OK, then Save & Close.
  8. Repeat steps 2 - 7 for each covered employee.

Add your account number for this tax:

If you aren’t sure what your account number is, look it up with the Washington State Department of Revenue.

  1. Go to Lists, then Payroll Item List.
  2. Double-click the payroll item called WA – Paid Fam Med Leave Emp or WA – Paid Fam Med Leave Co.
  3. Select Next until you get to the Agency for company-paid liability window. Next to Enter the number that identifies you to the agency window enter your EIN.
  4. Select Next twice, then Finish.

Delete WA PFML item from your employee’s profile

  1. Go to Employees, and select Employee Center.
  2. Double-click your employee’s name.
  3. Select Payroll Info, then Taxes.
  4. Select the Other tab.
  5. Select WA – Paid Fam Med Leave Emp., then Delete.
  6. Select WA – Paid Fam Med Leave Co., then Delete.
  7. Select OK, then Save & Close.

Exempt employees from Washington Paid Family and Medical Leave

Check with your state if you're exempt from this tax. To set up your payroll file as exempt:

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Tax withholding, select Edit.
  4. In the Tax exemptions section, select WA Paid Family and Medical Leave Premium.
  5. Select Save.
  1. Go toEmployeesand selectEmployee Center.
  2. Double-click the employee’s name.
  3. SelectPayroll Info,thenTaxes.
  4. Select theOthertab.
  5. In the Item Name, select theWA – Paid Fam Med Leave items, thenDelete.
  6. SelectOKtwice.

Frequently Asked Questions (FAQ)

What if I have an employee with tips? (QuickBooks Desktop Payroll only)

Washington Paid Family Leave should not include any tipped wages. If you have any tipped employees or income - they will require payroll adjustments to ensure the tipped income is not included in the reported wages. Please refer to this article for help on how to run a payroll check up.

If your employees earn tips, you must edit both tax items.

  1. Update to the latest tax table.
  2. From the Payroll Item List, edit the WA – Paid Fam Med Leave Emp and WA – Paid Fam Med Leave Co payroll items.
  3. Select Next until you see the Taxes window.
  4. In the Taxes window, select Default.
  5. Select Next until you see Finish, then select Finish.

If your employees earn tips, and you have NOT paid any employees with tips, you must edit both tax items.

  1. Update to the latest tax table.
  2. From the Payroll Item List, edit the WA – Paid Fam Med Leave Emp and WA – Paid Fam Med Leave Co payroll items.
  3. Select Next until you see the Taxable Compensation window.
  4. In the Taxable Compensation window, select unmark all tips payroll items.
  5. Select Next until you see Finish, then select Finish.

Assisted customers who have paid employees with tips, contact customer service for support.

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Set up and manage Washington Paid Family and Medical Leave (2024)

FAQs

How to set up Washington paid family and medical leave in QuickBooks? ›

Add Washington Paid Family and Medical Leave to your employees
  1. Go to Settings. , then Payroll settings.
  2. Next to Washington tax, select Edit ✎ to view your rates.
  3. In the Paid Family and Medical Leave section, select Edit.
  4. From the dropdown menu, choose the new rate and enter an Effective date.
  5. Select Save, then Done.

How do you qualify for Washington paid family leave? ›

They have worked enough hours to qualify for Paid Leave.

Nearly every Washington worker can receive paid leave as long as they have worked a minimum of 820 hours in Washington during the qualifying period. The 820 hours can be at one job or combined from multiple jobs.

Can employees opt out of Washington paid family and medical leave? ›

Some employees, however, may choose to apply for an exemption from WA Cares coverage. It's their responsibility to apply, and—if approved—to notify and give their employer(s) a copy of their approval letter from Employment Security Department (ESD).

How long do you have to wait for paid family and medical leave in Washington state? ›

Recently, Washington State revised the waiting period rule under PFML that will take effect on June 9, 2022. Under the new definition, a "waiting period" is the first seven consecutive calendar days beginning with the Sunday of the first week an eligible employee starts taking paid family or medical leave.

How do I file Washington paid family leave? ›

After you notify your employer and gather the documents needed, start your application process:
  1. Create your account. Visit our Technical Support page for instructions on creating a SAW account and adding Paid Leave as a service.
  2. Fill out the online application. Log-in. ...
  3. Upload your documents. Application checklist.

Do I pay taxes on Washington state paid family leave? ›

Like Social Security tax, the Washington paid family leave contribution has a taxable wage base.

What is the difference between FMLA and Washington paid family leave? ›

PFML is paid leave, whereas FMLA leave is not. PFML provides up to 90% of an employee's weekly pay — up to the maximum weekly benefit amount (which is updated annually).

Who is exempt from Washington paid family and medical leave program? ›

The following employers are exempt from the program: Federal employers and employees. Federally recognized Tribes*. Self-employed individuals*.

How much does WA paid family leave pay? ›

When you take Paid Leave, you can receive up to 90% of your weekly pay, up to the maximum, which is updated yearly. Your maximum weekly benefit amount won't change if you apply for or begin your leave in one year and your claim continues into a new calendar year. Maximum weekly benefit amounts: 2024 = $1,456 / week.

Does Washington paid family medical leave protect your job? ›

We refer to “job-protected leave” as the right to take unpaid or paid leave related to family or health with the guarantee of returning to the same job, or an equivalent one. or longer and at least 1,250 hours in the year before the first day they take Paid Leave (RCW 50A.

How often can you take Washington paid family leave? ›

Under the state PFML, eligible employees are entitled to up to 12 weeks of family or medical leave, or a combination of the two up to 16 weeks annually. While on leave, you are entitled to partial wage replacement.

Am I required to pay the employer portion of WA PFML? ›

Employer premium (mandatory for businesses with 50+ employees): About 28.57% of the premium is the employer's share. If your business has 50 or more employees, you must pay the employer share of the premium. This is determined each September and takes effect the following January for that full calendar year.

How do I set up family leave in QuickBooks? ›

Unpaid Family Leave in Quickbooks Online
  1. From the Payroll tab, select Employees.
  2. Select your name.
  3. Go to the Pay types section, then click Edit.
  4. Under Time off pay policies, click the Unpaid time off drop-down.
  5. Set up a time off policy, and then click Save.
  6. Enter the balance on the Current balance field.
  7. Click Save.
Jan 24, 2024

Is Washington paid Family and Medical Leave the same as FMLA? ›

Paid Family and Medical Leave is different than the Family Medical Leave Act (FMLA) Using FMLA does not reduce your allowed Paid Leave benefit, so you can use both types of leave. It's important to note that Paid Leave and FMLA usually run concurrently, since many Paid Leave events also qualify for FMLA.

How do I set up employer paid health insurance in QuickBooks? ›

Employer paid Health and Dental Insurance
  1. Go to the Lists menu.
  2. Select Payroll Item List.
  3. Right-click anywhere and click New.
  4. Select Custom Setup then click Next.
  5. Choose Addition and click Next.
  6. Enter the name of the item.
  7. Click Next twice.
  8. In the Tax tracking type drop-down, click None.
Dec 29, 2023

How do I set up paid sick leave in QuickBooks? ›

How to Set Up Sick Time Accrual in QuickBooks Online
  1. Go to Settings and select Payroll Settings.
  2. Select Paid time off or Unpaid time off.
  3. Add a Description.
  4. Adjust Accrual Frequency, Hours earned per year, and Maximum available hours.
  5. Select OK.

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