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Business Resource
Update Payroll Tax in QuickBooks

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Before You Start
  • Tax rate updates should be made after December 31st and before the first payroll of the year. 

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  • Get Software Payroll Updates

    • Login to QuickBooks

    • On the menu bar, click: ​Employees > Get Payroll Updates

    • Select: Download only changes and additions to currently installed payroll files.

    • Click: Update

    • Click: Ok
       

  • Please note, rates will not update if employee is marked inactive. ​

Paid Family & Medical Leave

Login to QuickBooks as Admin, in Single-User Mode
 

  1. Change the main Preference 

    • On the menu bar, click: Edit > Preferences... ​

    • In the left-hand column, Click: Payroll & Employees

    • Select tab: Company Preferences 

    • Click: Employee Defaults

    • Click: Taxes

    • Select tab: Other
       

    • Update the Employee Rate

      • In the Item list, select: WA - Paid Fam Med Leave Emp.

      • Update the Emp. Portion Rate (72.76% in 2023)
         

    • Update the Employer Rate (only if the business has 50 or more employees, otherwise 0%)​

      • In the Item list, select: WA - Paid Fam Med Leave Co.​

      • Update the Co. Portion Rate (27.24% in 2023)
         

    • Click: Ok > Ok​ > Ok 
       

  2. Update Employee Settings​

    • Open the Employee Center

    • Select tab: Employees

    • Follow the following steps for all employees
      ​

    • Double-click on employee's name

    • Select tab: Payroll Info

    • Click: Taxes

    • Select tab: Other
       

    • Update the Employee Rate

      • In the Item list, select: WA - Paid Fam Med Leave Emp.

      • Update the Emp. Portion Rate (72.76% in 2023)
         

    • Update the Employer Rate (only if the business has 50 or more employees, otherwise 0%)​

      • In the Item list, select: WA - Paid Fam Med Leave Co.​

      • Update the Co. Portion Rate (27.24% in 2023)
         

    • Click: Ok > Ok​

WA State Unemployment - Employment Security Department (ESD)

Use the Tax Rate Notice that was mailed in December from ESD.
 

  1. In QuickBooks, on the menu bar, click: Lists > Payroll Item List
     

  2. Update the Unemployment Insurance Rate

    • Double-click: WA-Unemployment Company

    • Click: Next > Next

    • Update the tax rate for the new year

      • Use the "Subtotal of unemployment insurance rate"

      • Do not include the EAF Rate

    • Click: Next > Finish​​
       

  3. Update the Employment Administrative Fund (EAF) Rate

    • Double-click: WA-Employment Admin. Fund

    • Click: Next > Next

    • Update the tax rate for the new year

      • Use the "Employment Administrative Fund (EAF)" rate

    • Click: Next > Finish

WA Worker's Comp - Dept. of Labor and Industries

Use the Tax Rate Notice that was mailed in December from L&I. 

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  1. In QuickBooks, on the menu bar, click: Lists > Payroll Item List
     

  2. Update the rates for the Employee portion

    • Double-click: L&I Employee Rate​

    • Click: Next > Next > Next > Next > Next > Next (until you get to the Default rate and limit window)

    • Update the tax rate for the new year

      • Use the "Hourly Employee Withholding" rate​

      • Do not include the "Employer Contribution" rate

    • Click: Finish​

    • Message: "Do you want to update all employees with the new item rate?" - Click: Yes

    • Click: Finish

    • If there is more than one Class Code, do the same for all Class Codes
       

  3. Update the rates for the Company portion​

    • Double-click: L&I Company Rate​

    • Click: Next > Next > Next > Next > Next (until you get to the Default rate and limit window)

    • Update the tax rate for the new year

      • Use the "Hourly Employer Contribution" rate​

    • Click: Finish​

    • Message: "Do you want to update all employees with the new item rate?" - Click: Yes

    • Click: Finish
       

  4. Update the Company Preferences​

    • Make sure that QuickBooks is in Single-User Mode​

    • On the menu bar, click: Edit > Preferences

    • In the left-hand column, Select: Payroll & Employees

    • Click on the Company Preferences tab

    • Click: Employee Defaults

    • In the "Additions, Deductions and Company Contributions" section, add L&I Company and L&I Employee

      • If these items are already listed, then update the rates here. ​

    • Click: Ok > Ok​

Minimum Wage

Be sure that all employees are paid at least a minimum wage.

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Update employee wage rate

  • In QuickBooks, open the Employee Center

  • Double-click on an employee's name

  • Click on the Payroll Info tab

  • Update pay rates in the Earnings sections

  • Click: Ok

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Minimum Wage for Year 2023

  • Washington $15.74 

  • Idaho $7.25 

  • Oregon $13.50 

  • California $15.50

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