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 Calculator to 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
QuickBooks Online Payroll
- Go to Settings
, then Payroll settings. - Next to Washington tax, select Edit ✎ to view your rates.
- In the Paid Family and Medical Leave section, select Edit.
- From the dropdown menu, choose the new rate and enter an Effective date.
- Select Save, then Done.
Taxes will deduct from your employees paychecks on the effective date.
QuickBooks Desktop Payroll
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.
QuickBooks Online Payroll
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.
- Go to Settings , then Payroll settings.
- Next to Washington tax, select Edit ✎ to view your rates.
- In the Paid Family and Medical Leave section, select Edit.
- From the dropdown menu, choose the new rate and enter an Effective date.
- 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.
- Go to Settings ⚙, then Payroll Settings.
- Next to Washington tax, select Edit ✎ to view your rates.
- In the Paid Family and Medical Leave section, select Edit.
- Select Delete next to the tax rate you want to remove.
- Select Yes, Delete to confirm action.
- Select Save, then Done.
QuickBooks Desktop Payroll
Enter or change the tax rate for each employee
- Go to Employees, and select Employee Center.
- Double-click the employee's name to open the Edit Employee window.
- Select the Payroll Info tab and select Taxes.
- In the Taxes screen that pops up, select the Other tab.
- 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.
- Select the tax to change the rate.
- Select OK, then Save & Close.
- 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.
- Go to Lists, then Payroll Item List.
- Double-click the payroll item called WA – Paid Fam Med Leave Emp or WA – Paid Fam Med Leave Co.
- 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.
- Select Next twice, then Finish.
Delete WA PFML item from your employee’s profile
- Go to Employees, and select Employee Center.
- Double-click your employee’s name.
- Select Payroll Info, then Taxes.
- Select the Other tab.
- Select WA – Paid Fam Med Leave Emp., then Delete.
- Select WA – Paid Fam Med Leave Co., then Delete.
- 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:
QuickBooks Online Payroll
- Go to Payroll, then Employees.
- Select your employee.
- From Tax withholding, select Edit.
- In the Tax exemptions section, select WA Paid Family and Medical Leave Premium.
- Select Save.
QuickBooks Desktop Payroll
- Go to Employees and select Employee Center.
- Double-click the employee’s name.
- Select Payroll Info, then Taxes.
- Select the Other tab.
- In the Item Name, select the WA – Paid Fam Med Leave items, then Delete.
- Select OK twice.
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.
QuickBooks Desktop Payroll Enhanced and Basic
If your employees earn tips, you must edit both tax items.
- Update to the latest tax table.
- From the Payroll Item List, edit the WA – Paid Fam Med Leave Emp and WA – Paid Fam Med Leave Co payroll items.
- Select Next until you see the Taxes window.
- In the Taxes window, select Default.
- Select Next until you see Finish, then select Finish.
QuickBooks Desktop Payroll Assisted
If your employees earn tips, and you have NOT paid any employees with tips, you must edit both tax items.
- Update to the latest tax table.
- From the Payroll Item List, edit the WA – Paid Fam Med Leave Emp and WA – Paid Fam Med Leave Co payroll items.
- Select Next until you see the Taxable Compensation window.
- In the Taxable Compensation window, select unmark all tips payroll items.
- Select Next until you see Finish, then select Finish.
Assisted customers who have paid employees with tips, contact customer service for support.
