Set up and manage Washington (WA) workers' compensation (2024)

by Intuit Updated 1 year ago

Learn how to set up, change, pay and file WA workers' compensation (also called L&I) in QuickBooks Payroll.

WA workers’ compensation insurance is required if you have employees working in the state of Washington. It is administered by the Washington State Department of Labor and Industries (WA L&I).

Select the task you want to complete:

  • Set up WA workers’ comp
  • Pay and file your WA workers’ comp
  • Change your WA workers’ comp rate

Note: Not sure which payroll service you have? Here's how to find your payroll service.

Set up WA workers' comp

Step 1: Get your rates

You can find your rates on the rate notice you get from the WA Department of Labor & Industries, or on their website. Enter your UBI account number, and your rates will show under Risk Classification.

Step 2: Add a workers’ comp class and rate to your employee

Note: we can only accommodate one class and rate per employee. If your employee has more than one class and rate, you may need to calculate their workers’ compensation manually.

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Workers' Comp, select Start or Edit.
  4. Select Yes, I have the tax rate.
  5. Select New workers' comp class or choose your existing class.
  6. Enter the following info:
    • Class: first 4 digits of the Class Code
    • Subclass: second set of digits on the Class Code
    • Nature of work (optional): listed as the Class Code Description on the rate notice
    • Composite rate: the total rate of Employer + Employee
    • Payroll deduction: the employee rate used to calculate the amount on your employee’s paycheck.
    • Effective date
  7. Select Done. You can now assign the same class or set up other classes for the rest of your employees.

Understand how QuickBooks calculates WA workers’ comp for salary and commission employees

Salary employees

QuickBooks follows WA L&I regulations and calculates workers’ comp at 160 hours per month. Workers’ comp is calculated on the employee’s first paycheck of each month.

Commission employees

You must enter hours when creating paychecks for your commissioned employees so that WA workers’ comp will calculate.

You’ll need to set up two payroll items for WA workers’ comp: a company contribution and a deduction. Then you’ll add both payroll items to your employees.

Step 1: Set up the company contribution

  1. Select Lists, then Payroll Item List.
  2. Select Payroll Item, then New. Then select Custom Setup.
  3. Select Company Contribution and then select Next.
  4. Name the payroll item (for example: WA L&I Employer) and select Next. Tip: use Employer or Company in the name so you can tell the difference between the two items when adding them to your employees.
  5. Enter the Agency Name (for example: WA L&I) and Account Number (your UBI number). Then, select the accounts you wish to use from your Chart of Accounts. Select Next.
  6. Select the Tax Tracking Type None and select Next twice.
  7. Select Calculate the item based on hours and select Next. Note: if your employees are paid on commission, select calculate based on quantity. You’ll enter their hours in the quantity field on their paychecks.
  8. Enter your Employer rate and select Next.
  9. Select Finish.

Step 2: Set up the employee deduction

  1. Select Lists, then Payroll Item List.
  2. Select Payroll Item, then New. Then select Custom Setup.
  3. Select Deduction and then select Next.
  4. Name the payroll item (for example: WA L&I Employee) and select Next. Tip: Use Employee in the name so you can tell the difference between the two items when adding them to your employees.
  5. Enter the Agency Name (for example: WA L&I) and Account Number (your UBI number). Then select the accounts you want to use from your Chart of Accounts. Select Next.
  6. Select the Tax Tracking Type None and select Next twice.
  7. Select Calculate the item based on hours and select Next. Note: if your employees are paid on commission, select calculate based on quantity. You’ll enter their hours in the quantity field on their paychecks.
  8. Select Net Pay and select Next.
  9. Leave the default rate $0.00 or blank. You’ll enter the employee rate in Step 4.
  10. Select Next.
  11. Select Finish.

Step 3: Add the company contribution and deduction to your employees

  1. Select Employees, then Employee Center.
  2. Double-click an employee’s name.
  3. Select Payroll Info.
  4. From the Additions, Deductions and Company Contributions window, click anywhere inside the Item name field, select the drop-down and select the Employee item.
  5. In the Amount field, enter the employee rate.
  6. From the Additions, Deductions and Company Contributions window, click anywhere inside the Item name field, select the drop-down and select the Employer or Company item.
  7. If you didn’t enter a rate on the payroll item or the employer rate is different for this employee, In the Amount field, enter the employer rate.

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Pay and file WA workers’ comp

You must pay and file the form with WA Labor & Industries directly. WA workers’ comp premiums and Form WA F212-055-000 are due quarterly.

Step 1: Get your WA workers’ comp worksheet

The worksheet is available by the 20th of the month following the end of the quarter. For example, for the first quarter (January - March), this form will be available by April 20th.

  1. Select Taxes, then Payroll Tax.
  2. Select Filings, then Quarterly Forms.
  3. Select WA Workers' Comp Worksheet.

Step 2: Pay and file online

You can pay and file online through the .

Step 1: Get a Payroll Summary report

You can use a Payroll Summary report as a guide to help you complete the form WA F212-055-000.

Step 2: Pay and file online

You can pay and file online through the .

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Change your WA workers’ comp rates

  1. Select Settings , then Payroll Settings.
  2. From the Washington Tax section, select WA Workers Compensation Tax.
  3. Select Edit ✎ next to the workers’ comp class you wish to change.
  4. Enter the new Composite Rate, Payroll Deduction, and/or Effective Date.
  5. Select OK.

To change the employer default rate on the company contribution payroll item

  1. Select Lists, then Payroll Item List.
  2. Double-click on your WA workers’ comp payroll item.
  3. Select Next until you get to the default rate.
  4. Edit the rate, then select Next and then Finish.

To change an employee rate

  1. Select Employees, then Employee Center.
  2. Double-click the employee’s name.
  3. Select Payroll Info.
  4. In the Additions, Deductions, and Company Contributions window, change the employer and/or employee amounts as needed.

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Set up and manage Washington (WA) workers' compensation (2024)
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