One of my clients mentioned to me yesterday that they had an unemployment tax audit and were advised that sick pay is not subject to Washington state unemployment. I was rather shocked to hear this as in all my 30 years as a CPA I had never heard this (workman's comp, yes but unemployment no). I'm guessing this must be a recent change?
Confirmed via the state website and one of my former colleagues.
In the old legacy payroll, I would just go and clear the check boxes on that earnings code and I would be done.
Under the new payroll you select the tax rule for sick pay and you theoretically are done. Unfortunately the database for the tax rules apparently is not aware of this and is including sick pay in the wages subject to unemployment.
I'm assuming I just need to make Sage aware of this and they can get the tax rules fixed (since I don't believe we can do that).
Thoughts?
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