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us_-_labor_industries_tax_-_washington_state [2017/10/16 13:56 (7 years ago)] – [Tax] rreyesus_-_labor_industries_tax_-_washington_state [2024/01/23 22:17 (2 months ago)] (current) – removed rreyes
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-====== US Labor & Industries Tax - Washington State ====== 
  
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-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/. 
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-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. 
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-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. 
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-===== Tax ===== 
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-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. 
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-==== Subtype Setup ==== 
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-  - From the payroll main navigator, go to **//System Settings > System Settings > Subtype Setup//**. 
-  - From the //IDAT Identifier// dropdown menu, select "Tax". Then enter freely the //Code// and //Description// of the new subtype. 
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-==== Calculation Setup ==== 
-  - Going back to the System Settings window, click the **[Calculation Setup]** button. From the //IDAT Identifier// drop menu, select "Tax" then click the **[New]** button in the toolbar.  
-  - Enable the following check boxes: 
-     * //Use Amount?// and label as "Hourly Rate" 
-     * //Use T4 Box?// (5 boxes) and label as "W2 Box" 
-     * //Use Expense Ledger?// 
-     * //Use Liability Ledger?// 
-     * //Use Rate Table?// 
-     * //Use Formulas?// 
-  - In the //Employee Contribution Formula//, enter the formula: 
-     * (<IItemPay>/<Unit>)*<Amount[<AnnualPeriods>,<Subtype[RATE]>]> 
-  - In the //Company Contribution Formula//, enter the formula: 
-     * (<IItemPay>/<Unit>)*<Formula[<AnnualPeriods>,<Subtype[RATE]>]> 
-  - In the Rate Sub Type grid, enter freely a name for the rate table. In this example, it should be RATE to compliment the formula from steps 6 and 7. Once all information are in place, click the **[OK]** button to save. 
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-==== Custom Tax ==== 
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-  - From the payroll main navigator, go to **//Company Setup > Taxes//**. 
-  - In the //Effective Date// field, set the date for which the tax that you are about to add would likely to take effect. 
-  - Click the **[Add]** button to invoke the //Add New Tax// window. 
-  - 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]**. 
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-===== Attach the Tax to an Income ===== 
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-To attach this tax to an income item, go to the Incomes tab of the company setup and edit the income item. Through the Taxes tab of the payroll item, toggle the payroll tax item to be attached the income. 
-===== Pay Run ===== 
-In an employee's worksheet, once the number of hours will be entered, L&I tax will then be calculated. This tax is calculated based on the number of hours rendered for work by the employee at a rate specified by the Labor and Industries. 
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-However, for a salaried employee, a required number of hours within a period will need to be specified or set in the income item of the specific employee. 
us_-_labor_industries_tax_-_washington_state.1508187396.txt.gz · Last modified: 2017/10/16 13:56 (7 years ago) by rreyes