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Washington Cares Tax - Payroll

  • 17 March 2022
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I have a Washington Cares withholding for Washington State and it’s nowhere evident in Acumatica, is there something I need to do to get it to appear or is this a deduction I need to set up myself?

 

Thank you!

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Best answer by mikedavidson07 18 March 2022, 16:27

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It looks like the Washington State Cares Fund is an employee deduction managed by the state that will go into effect July 1st 2023?  You may need to gather a little more information taxation and reporting requirements.

I don’t think there is a specific accommodation for this in Acumatica.  You should be able to handle this with a regular deduction.

  1. Configure a Payables vendor to handle the liability payment.
  2. Configure a GL account to handle/track the payroll liability.
  3. Setup the new deduction.
    1. Use the Employee Deduction Tab to setup the deduction as “Percent of Gross” and enter the rate.  
    2. Use the GL Accounts tab to enter the liability account you setup above.
    3. If there are special tax requirements, check the box “Affects tax calculation and this will add the Tax Settings tab where they can be defined.
  4. Assign the new deduction to the Deductions and Benefits tab of the Employee Payroll Settings for each employee. Pay attention to the start date.

On your first pay run, after you have calculated (prior to processing the payment) you should confirm the withhold amount is correct.  If not, you can adjust the rate and recalculate.

Hope this helps. 

 

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