Set up deduction under Human Resources>File>Percentage Tax Rates
How to Add a Percentage Tax Rate for Paid Medical Leave
- Click the green plus to add a new global deduction.
- Fill out the Deduction File dialog. The example below is for Paid Family Leave rats for Washington State.
| Field | Explanation |
|---|---|
| Type | Select State Tax from the dropdown box. |
| State | Select WA for Washington state. |
| Description | Enter a description here that is meaningful to you. |
| Account | Specify an account code that this insurance will be withdrawn from. |
| Sub | If there is a sub account code used for this insurance account, enter it here. |
| Pay Cycle | Select per Year from the dropdown. |
| Gross to Use | Select the income type to deduct from. |
How to set the Rates
From the Update the Deductions File dialog box, in the bottom section, enter the rates for the employee and the employer.
The numbers in the example below are for .092 * .7152 (.65%) for employee and .092 * .2848 (.26%) for employer. Your numbers may be different depending on the amount being paid by the employee and employer.
The total premium paid is 0.92% (as of Jan. 1, 2025) of gross wages. Under the law, employers may split the cost of the program. Of the total premium, employers will pay 28.48% (as of Jan. 1, 2025) and employees will pay 71.52% (as of Jan. 1, 205).
Employers with less than 50 employees are not required to pay the employer portion. However, the employee premium should still be collected or pay employees' premiums on their behalf. (Please confirm all these facts with your accountant).
- Premium withholdings are capped at the Social Security cap, $176,100 (as of Jan. 1, 2025).
- See https://www.paidleave.wa.gov/ for more details
Apply the tax to Worker Information
Verify that the State is pulled into each employee in the Worker Information (example below illustrates WA).
- In Human Resources go to File>Worker Information
- Select the worker and navigate to the tab State & Local Information
- Select the Insert button and choose the code for Washington
Prepare Pay
***The example below uses outdated rates, but the process and reports will look the same.***
- The employer portion is $500 * .16% or .80. For a total of $2.95 premium to be remitted.
- Using the setup above will also produce a line on the last page of the quarterly tax report displaying employee/employer contributions.
Comments
Please sign in to leave a comment.