Now that the WA Cares tax is postponed until July 2023, for those payroll clients who have been withholding the tax for their employees since 1/1/22, they are now mandated to refund the tax to their employees. It is important that the tax be reversed vs. entering a negative deduction.
- Per Sage:
If you enter it as a deduction, then it will still be in the tax files and populate in the Aatrix records. FYI: the Sage Payroll Agent will be setting this tax rate to zero in the next deployment.
It's likely under $40 for most employees so the instructions can be followed below to correct it within a normal payroll run or they can choose to enter a separate payroll or separate check entry where the manual tax box is checked and the negative WA Cares YTD tax amount is entered.
Steps to correct:
- Uncheck the WA Cares Tax box for all WA tax profiles
- Print the Tax Liability report for State only and WA tax profiles and for the period 1/1/22 – current date.
- Enter payroll like normal
- Calculate payroll taxes
- Go back into payroll data entry and for each employee check the Manual Tax box
- Access the Taxes button
- From the Tax Liability report enter the WA Cares Tax total as a negative value
- Calculate payroll taxes
- Continue payroll as normal
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Shari Eckersley
InTWO, Inc.
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