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--- us_-_labor_industries_tax_-_washington_state [2017/10/16 13:56 (7 years ago)] – [Tax] rreyes
+++ us_-_labor_industries_tax_-_washington_state [2024/01/18 23:11 (3 months ago)] – [US Labor & Industries Tax - Washington State] rreyes
@@ Line 1: / Line 1: @@
-====== US Labor & Industries Tax - Washington State ======
+======Labor & Industries Tax - Washington State ======
 Washington Labor and Industries (L&I) tax is generally paid by both the company and the employee. It is based on hours worked with different rates for different occupations being grouped according to risk classification. For a complete list of rates and risk classes you may refer to http://www.lni.wa.gov/.
-Since this tax is not part of the system default taxes, there is a need to add this into the system as a custom tax. Let us consider the class code 0301-06 Agricultural sprinkler/irrigation systems as an example to demonstrate on how to setup this tax in Windward Payroll.
+Since this tax is not part of the system default taxes, there is a need to add this into the system as a custom tax, to be configured locally and has to be updated locally. Let us consider the class code 0301-06 Agricultural sprinkler/irrigation systems as an example to demonstrate on how to setup this tax in Windward Payroll.
 As of 2015, under class code 0301-06, the employer should contribute $1.09480 and withhold $0.30530 from the employee's pay for every hours worked.
-===== Tax =====
-Washington Labor and Industries tax is not currently set as a default tax within Windward Payroll. This tax needs to be configured locally and has to be updated locally.
 ==== Subtype Setup ====
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   - Since we are about to create a custom tax, click the **[Create]** button and click **[Yes]** to the confirmation dialogue.
   - Enter the //Name//, //Abbreviation//, //State//, //Sub Type// (from #2), //Calculation Type// (from #3), and //Effective Date// and click **[OK]**.
+  - //Type// Tab:Enter the //Expense and Liability Ledgers// for posting and just leave the //Hourly Rate// as it is.
+  - Then click the **[Rates...]** button to open the rate table for this tax. Just click **[Yes]** on the confirmation dialogue to proceed with the creation of rate table.
+  - Set the range of 1 to 365 in the //Salary Start and End// columns. This will consider all of the pay periods.
+  - In the //<Amount>// column, enter the employee withholding rate which is in this example as 0.30530.
+  - Enter the employer withholding rate in the //<Formula>// column, which in this case is 1.09480.
+  - Then exit out of the rate table to go back to the //Type// tab by clicking the "X" icon at the upper right most corner of the window and navigate to the //Details// tab by clicking the **[Next]** button.
+  - //Details// Tab: Enter the payee of this payroll item in the //Remittance Payable to// field and configure the //W2 Boxes// for reporting purposes. Set the //Usage Control// to "Adjust Rates Allowed" and click **[OK]** to save and exit.
+<note important>Remittance Payable to and W2 Boxes may differ in the actual setup. Refer to you accountant as which specific tax box will it be reported as well as the payee for the remittance</note>