Washington Paid Family Medical Leave - Setup / 5730 Form

Pay category setup

Washington Paid Family Medical Leave Setup

To do this, we need to create (3) Pay code categories:

1. Premium code – as a benefit – to calculate as a formula for the .4%.
2. Employer Share – as a benefit – to calculate as a formula for the 36.67%.
3. Employee Deduction – as a deduction – to calculate the 63.33%.
   
   

Premium Code (Benefit)

First we need to setup a benefit code to handle the premium:

1. Go to > Setup > Payroll setting > Payroll Category / Click (+) at the top (Show on Edit Paycards optional flag but nice to see it working as a calculation to start)
2. Setup like below (you can choose an appropriate category code).
   
3. Formula needs to be .40% of all the payroll categories that this tax attracts (ie Salary, hourly, overtime etc). Setup as per below in the Formula.
   
   
   

Employer portion (Benefit)

1. Go to > Setup > Payroll setting > Payroll Category / Click (+) at the top.
2. Setup like below (you can choose an appropriate category code). 
   
3. Enter formula as per below.
   
4. In the Advance tab include the Max per year as required.
   
   
   

Employee portion (Deduction)

1. Go to > Setup > Payroll setting > Payroll Category.
2. Click (+) at the top.
3. Setup like below (you can choose an appropriate category code).
   
4. Enter as per below so it calculates for employee side first.
   

Setup in the Employee Master paycard

1. Go to Employees > Master paycard > select employee.
2. Add the Benefit code (Employer side) to the employee (in example 315 pay category). Factor is 100%.
   
3. Add the Premium Benefit code (Total Premium) to the employee (in example 320 pay category). Factor is 100%.
4. Add the Deduction (employee side -in example 416 pay category).
   
5. Edit Paycards result:
   
   
   
   

How to produce the 5730 Local WA Paid Family Leave WAPFL

1. The FMLA employee Deduction assigned to WA - Paid Family Leave:
2. Go to Setup > Payroll settings > Payroll categories.
3. Double click the deduction > Form assignment > Form: LOCAL | Box: PFL.
   
4. All earnings/benefits used to calculate above deduction ( FMLA employee deduction)  should be assigned to WA - Paid Family Leave Gross:
   Double click pay category > Form assignments > Form: LOCAL | Box: PFL gross.
5. Example of form assignment setup.
   
6. Assign units to WA - Paid Family Leave - hours worked:
   Double click Earning / Benefits > Form assignments > Form: LOCAL > Box: PFL hours worked
7. NOTE: If require to keep track of the hours for Salary employee and produce the 5730 report create a Benefit defined as Hourly , Form assignment to Local | PFL hours worked.
8. This will record only hours:
   
   Note: report does not use amount assigned to 'WA - Paid Family Leave' > it re-calculates amount using gross and % on the form. However, we need to assign correct category to 'WA - Paid Family Leave' to get list of applicable employees.
9. Run the report:
   Go to Forms > Tax form wizard.
10. Prepare a new report > locate: WA | Washington | WA PFML FORM > Next.
    
11. Select department > Next > Select Quarter > Next > Finish.
12. Report will show the List of the employees, the taxable amount and hours.