In the February 2019 payroll tax update Sage finally released a formula for Washington state’s new Paid Family Leave tax that took effect 1/1/2019. Unfortunately they failed to realize that the new formula uses the Special1 Additional Withholding field, which is already used by the Washington L&I tax, causing the family leave formula to calculate incorrectly. My recommendation is to continue using a custom formula for the paid family leave as it’s relatively easy to set up.

If you’re still trying to set up a paid family leave deduction in Sage 50, IQ Accounting Solutions can help. You can contact me at or 918-851-9713.