Washington Labor and Industries Workers' Compensation
Overview
Washington's Labor & Industries (L&I) program provides workers' compensation coverage for employees. Both employers and employees contribute to this state-run insurance program.
For the latest information, visit: https://www.lni.wa.gov/
Setting Up in ProPay
Employer rates setup
To set up company workers' compensation rates:
- Go to Employer > Workers Comp Setup to configure your employer L&I rates.
- Review the help topics on setting up carriers, rates, and payment methods.
- Configure rates according to your company's risk classifications.
Employee deductions setup
Employee deductions for L&I vary by job type. Set up employee contributions using the regular deduction fields:
- Go to Employer > Deductions Setup.
- Select any available field (Ded1-Ded19).
- Enter the following settings:
- Description: WALNI
- (Inc) or (D)ed: D
- Taxability: Leave all checkboxes unchecked
- Check if used: Check this box
Employee rate assignment
Each employee may have a different rate based on their type of work:
- Go to Employees > Add or Change > select the employee > Deduct/Reim tab.
- Enter each employee's rate(s).
- You can enter rates as a percentage or hourly amount.
Exempt employees
To set up employees who are exempt from L&I:
- Go to Employer > Workers Comp Setup > W/C Codes.
- Add a code with zero rate and description EXEMPT EMPLOYEES.
- Go to Employees > Add or Change > select the employee.
- Select the correct W/C insurance code for each employee, including exempt employees.
- Go back to Employer > Workers Comp Setup > W/C Codes.
- Click Apply Rates to Prior Periods.
Printing L&i Tax Forms
- Go to Client Functions > Tax Returns.
- Select the L&I forms you need to print.
Note: These tax forms are hard-coded in the program and cannot be edited by users in the same way as other state forms.
Important Notes
- L&I rates vary by industry and job classification
- Both employer and employee portions must be properly configured
- Rates are set by the state and change periodically
- Exempt employees must be explicitly designated in the system