Do your payroll and L&I numbers match?
In Washington, workers' comp premiums are based on hours worked. Five questions to check that the hours on your L&I report match the hours in your payroll.
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Why this matters
Every quarter, Washington employers send the Department of Labor & Industries (L&I) a report of the hours their workers worked, and pay workers' comp premiums on those hours. L&I says that in Washington, premiums are based on hours worked instead of payroll. That means the hours on your L&I report and the hours in your payroll should tell the same story. When they don't, it is usually a habit in how the report gets filled in, and it is easier to sort out early.
The questions
Five questions about your payroll and L&I reports
Answer each one for your own home. Nothing is sent anywhere. It is just for you.
Where do your reported hours come from?
Do the hours on your quarterly L&I report come from payroll, from the planned shifts, or from an estimate? The closer they are to payroll, the easier they are to explain.
Is each worker in the right risk class?
L&I sorts work into risk classes, and adult family homes have their own: class 6509, Boarding homes/Adult family homes. Do you know which class each of your workers is reported under?
How do you report 24-hour shifts?
For class 6509, L&I allows an average hourly wage method, but only for workers on a 24-hour shift at the work site. You add up everything paid to the worker, including housing or utilities you provide, divide by L&I's average hourly wage for the class, and report the result as hours. Do you use it, and does it fit how your home really works?
Does anyone compare the report to payroll before it is filed?
Whether you, a bookkeeper or a payroll service fills in the report, someone should check its total hours against payroll for the same quarter. Reports are due April 30, July 31, October 31 and January 31.
Would you know what to do if they didn't match?
If a past report looks off, would you know who to ask? L&I's Employer Help Line (360-902-4817) answers questions about quarterly reports, and a bookkeeper can help you find where the difference started.
Answer the questions above to see where you stand.
Walk through it with usThe bigger question
Your L&I report is another picture of your payroll. Both pictures should show the same home.
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