Task Sheet Withholding Washington Labor & Industries (WALI) You must set up Workers Compensation for the State of Washington using the Washington Labor & Industries (WALI) for each company. This document explains how to configure this important feature. The first major step is to set up and assign the proper codes (see below). After setup is complete, you can process taxes (see Processing Quarterly Taxes on page 12). Setting Up & Assigning the Codes When you set up Washington Labor & Industries Workers Compensation for a company, you have to: A. Set Up the L&I Earning Code B. Set Up the L&I Deduction Code C. Set Up the L&I Code Group D. Set Up Washington L&I as an Agency E. Set Up Workers Compensation Set Up the L&I Earning Code To set up a Washington L&I earning code, perform the following: 1. Select [company] > Company Maintenance > Company Setup > Earnings tab. The system displays the Earnings page, as shown in Figure 1: M3-mmm-bt-SB-nnn-01 5
Withholding Washington Labor & Industries (WALI) Figure 1: Earnings page, with an item created for Washington L&I 2. Create a new earning code by clicking the yellow star (new item) button. You can name the code whatever you wish. Make a note of the name as you will need it later in the setup. 3. Select MemoWC from the Earn Type drop down list. IMPORTANT Do not add this new earning code to the Employees > [employee] > Auto Pays or Fringe tabs. Set Up the L&I Deduction Code Note This step is only necessary if you will be withholding Washington L&I from employee paychecks. To set up a Washington L&I deduction code, perform the following: 1. Within the same company, select Company Setup > Deductions tab. 6 Millennium 3 book_type
Release 3.29 The system displays the Deductions page, as shown in Figure 2: Figure 2: Deductions page, with an item created for Washington L&I 2. Create a new deduction code by clicking the yellow star (new item) button. Name the code whatever you wish and make note of it, as you will use it later. 3. Under the Deduction Setup sub tab, select WA L+I from the Ded Type drop down list. IMPORTANT Do not add this new deduction code to the Employees > [employee] > Deductions tab. Set Up the L&I Code Group Note This should only include earnings codes for hours spent in physical labor. Do not include vacation hours, sick time, and so on. To set up a Washington L&I code group, perform the following: M3-mmm-bt-SB-nnn-01 7
Withholding Washington Labor & Industries (WALI) 1. Within the same company, select Company Setup > Code Groups tab. The system displays the Code Groups page, as shown in Figure 3: Figure 3: Code Groups page, with an item created for Washington L&I 2. Create a new deduction code by clicking the yellow star (new item) button. You can name the code whatever you wish, but it must not match the name of the earning code you created earlier (see Set Up the L&I Earning Code on page 5). Make note of the name, as you will need it later in the setup. 3. Under the General sub tab, put a check in the Earnings check box. 4. Under the Codes Included In Group section, put a check in the box that corresponds with the earnings code you created earlier. Set Up Washington L&I as an Agency To set up an agency check that is automatically generated at the end of each quarter, you must have a particular frequency set up for that company. The frequency must have a base frequency of Q3 and Take Last Week. If you already have this frequency defined in your system, skip to step 6. If you do not have this frequency, begin here: 1. Within the same company, select Master Company Setup > Frequencies tab. The system displays the Frequencies page, as shown in Figure 4: 8 Millennium 3 book_type
Release 3.29 Figure 4: Frequencies page 2. Create a new frequency code by clicking the yellow star (new item) button. Name the code whatever you wish and make note of it, as you will use it later. 3. Select Q3 from the Base Freq drop down list. 4. Select Check Date from the Date Code drop down list. 5. Put a check in the Take Last Week check box. Once you have created this frequency, proceed with creating the agency. 6. Within the same company, select Company Setup > Agencies tab. The system displays the Agency Checks page, as shown in Figure 5: M3-mmm-bt-SB-nnn-01 9
Withholding Washington Labor & Industries (WALI) Figure 5: Agencies page, with an item created for Washington L&I 7. Create a new agency code by clicking the yellow star (new item) button. You can name the code whatever you wish. Make a note of the name as you will need it later in the setup. 8. Select the appropriate frequency code from the Frequency drop down list. 9. Fill in the Last Paid field with the last day of the prior quarter. 10. Attach this agency code to either the earning or deduction code (but not both). For example, if you were to redefine the deduction code, you would: a. Select the Company Setup > Deductions tab. b. Select (highlight) the L&I deduction code in the items list that you set up earlier (see Set Up the L&I Deduction Code on page 6). The Deduction Setup sub page is shown in Figure 6: 10 Millennium 3 book_type
Release 3.29 Figure 6: Deduction Setup sub-page, with the appropriate agency c. Select the agency you just set up from the Agency drop down list. Now, when the last payroll of the quarter is run, the system will generate the payment automatically or place it in the agency warehouse. Set Up Workers Compensation If you set up the appropriate earning and deduction codes and add the correct information to the Edit Workers Comp Code and Workers Comp Rates sub pages, Millennium will calculate the appropriate employee and employer portions and post them to the employee checks. To set up a Washington L&I Workers Compensation code, perform the following: 1. Within the same company, select Company Setup > Work Comp tab. 2. Select (highlight) the appropriate Workers Compensation code. 3. Click on the Workers Comp Rates sub tab. The system displays the sub page show in Figure 7: Figure 7: Workers Comp Rates sub-page 4. Enter the employer rate in the Rate field; otherwise, if the employer chooses not to withhold from the employee, enter the full composite rate in the Rate field. 5. Enter 1 in the Exp Rate field. M3-mmm-bt-SB-nnn-01 11
Withholding Washington Labor & Industries (WALI) The reports will not work correctly without an experience rate. 6. Enter the appropriate code group in the Code Grp column. The code group should include worked earning codes. Make sure you have a Workers Compensation Transfer set up to transfer the funds from the client to your bank account, as well. 7. In the ER Code column, enter the employer L&I memo earning code, as discussed in Set Up the L&I Earning Code on page 5. 8. If you will be withholding Washington L&I from employee paychecks, enter the employee L&I deduction in the EE Code column. Millennium uses the employee s state SUI code (use the 2 character state abbreviation) to determine the appropriate state for Workers Compensation. In Washington, many executives are exempt from SUI. 9. Put a check in the Hours? check box, as Washington L&I is based on hours worked. 10. If you would like to impound the Washington L&I monies, put a check in the Impound? check box. 11. To have Millennium automatically select Washington as the state for Workers Compensation in this type of situation, put a check the Default? check box (if no SUI is set up). This will tell Millennium to use this rate if the employee does not have a SUI code defined. If you choose this option, you ensure each and every Washington State Workers Compensation line item. 12. Within the same company, select Employees > [employee] > Status/Position tab. 13. Select the appropriate code from the Work Comp drop down list. 14. Within the same employee, select the Taxes tab. 15. Select WA from the Work State drop down list. 16. Repeat steps 12 15 for each employee. Processing Quarterly Taxes See knowledge base article 1185 for instructions on setting up the account ID for L&I (listed under Washington SUI). You can print test copies, client copies, filing copies, and so on, just like any other quarterly return however, the Payments tab will not actually create a payment for the tax. Payments for WALI are made using the steps indicated in Set Up Washington L&I as an Agency on page 8. The WALI Form Regarding the WALI Form, Millennium does not currently track the Sub portion of the Workers Compensation code. 12 Millennium 3 book_type
Release 3.29 Instead, the system takes the first two digits of the description and places them in the Sub column of the return. This action allows the company to specify the Sub portion of the Workers Compensation code in the description of the WC code. If a client does not want anything in the Sub column of the form, then indent two spaces in the description field. M3-mmm-bt-SB-nnn-01 13
Withholding Washington Labor & Industries (WALI) 14 Millennium 3 book_type