Case Study of Correcting the Quarterly L&I Report leads to a $7,267.25 credit to the taxpayer!

The Challenge: Incorrect Payroll Reporting to WA State L&I

A client approached us with a significant problem—they had been incorrectly reporting their payroll information to Washington State Labor & Industries (L&I) for several years. The errors included misclassifying their wife as a construction worker instead of her actual role as an administrative assistant in the office and mistakenly including the business owner in the payroll reports, despite owners being excluded from workers’ compensation coverage.

The Solution: A Comprehensive Payroll Review and Reclassification

To address these issues, I conducted a thorough review of the client’s payroll records spanning four years. This was no small task, as it required meticulous attention to detail to identify and correct every error that had been made over this extended period.

Detailed Examination of Payroll Records: I carefully went through each payroll entry for the past four years, cross-referencing with job roles, duties, and L&I classifications to ensure that every employee was accurately categorized according to their actual work performed.
Preparation of Working Papers: To build a strong case for the amendments, I prepared detailed working papers. These documents outlined the original errors, the corrected classifications, and the rationale behind each correction. The working papers served as a clear, organized record that demonstrated the thoroughness of the review and the accuracy of the requested amendments.
Submission to L&I: With all the documentation in place, I submitted a comprehensive amendment request to Washington State L&I. This package included the working papers, supporting payroll records, and a formal request to amend the client’s payroll reports for the past four years.
Communication and Follow-Up: I maintained open communication with L&I, providing any additional information they required and ensuring the process moved forward smoothly. This persistence paid off, as L&I accepted the corrections without issue.

The Outcome: A $7,267.65 Credit

Thanks to this detailed review and the careful preparation of all necessary documentation, the client received a substantial credit of $7,267.65 from Washington State L&I. This credit was a direct result of correcting the payroll classifications and ensuring that only the appropriate individuals were included in the workers’ compensation coverage.

The Takeaway: Expertise That Saves You Money

This case highlights the critical importance of having a knowledgeable professional handle your payroll and reporting processes. A thorough review can uncover errors that, when corrected, lead to significant financial savings and ensure compliance with state regulations.

Final Thought: We Love Helping Small Businesses

At the end of the day, our passion is helping small businesses navigate the complexities of their finances. Whether it’s recovering overpaid amounts, ensuring accurate payroll reporting, or handling other bookkeeping challenges, we’re here to support you every step of the way.