All employees are paying the same rate

•Employee Calculation

•Select 'Hourly 1' as one of the Paycheck Deduction types on the Paycheck Setup screen.

•Change the Heading to 'WA L&I'. Enter the employee dollar amount per hour in the Rate field.

•Employer Calculation

•On the Employer Paid Taxes screen:  Enter 'WA L&I' as the description, enter 'Hours' in the Limit field, and enter the employer dollar amount in the Rate field.

If all employees do not pay the same rate

•Employee Calculation

•Select 'Hourly 1' as one of the Paycheck Deduction types on the Paycheck Setup screen.

•Enter the highest employee dollar amount per hour in the Rate field - to serve as your default employee rate.

•For each employee with a rate other than the default, edit rate in the State Withholding section of the Employee screen.

•Employer Calculation

•On each employee's screen, make sure their Department is set to their appropriate L&I rate code - usually a four digit number.

•Do not setup a WA L&I calculation on the Employer Paid Taxes screen.

•To view the hours for each employee, as well as by department, print the Worker's Compensation report.

•If you have set the employee departments to match their rate code, you can calculate the employer liability by multiplying the hours by the employer rate, for each rate code - department.

•If you did not set the employee departments to be their rate code, you can calculate the employer liability by multiplying each employee's hours by the employer's rate code for the specific employee.

Notes

•If your rate has five decimal places, you can use the 'all employees do not pay the same rate' method to calculate five decimal places.

•If an employee is not subject to L&I, mark them as exempt from WA L&I.

PROFESSIONAL EDITION

•If you have employees with two pay rates, or two L&I rates, you can use Medlin Payroll to calculate L&I properly.

•On the Setup screen, select 'Hourly 2' as one of the Paycheck Deduction types on the Paycheck Setup screen.

•Change the Heading to 'WA L&I 2'.

•Enter the highest employee dollar amount per hour in the Rate field - to serve as your default employee rate.

•For each employee with a rate other than the default, edit rate in the State Withholding section of the Employee screen.

•If the employee has one Pay Rate and two L&I rates, setup both of the employee pay rate fields (even though they will have the same pay rate), making sure to enter one of the L&I Rate Codes as Department 1, and the other as Department 2.

•When creating their paychecks, enter the hours worked for each Department (L&I Rate Code).

•If the employee has two Pay Rates, enter the higher Pay Rate as Rate 1, and the lower Pay Rate as Rate 2.

•If there is one L&I Rate Code for the employee, enter the same L&I Code in both Department 1 and Department 2.

•If there are different L&I Rate Codes for each Pay Rate, enter the appropriate Rate Code in the appropriate Department.

•For the second employer calculation, if all employees pay the same second rate, on the Employer Paid Taxes screen.

•Enter 'WA L&I 2' as the description, enter 'Hours' in the Limit field, and enter the employer dollar amount in the Rate field.