Payroll Update - WA Paid Family & Medical Leave Program
More and more Washingtonians are using the Paid Family & Medical Leave benefits. To keep pace with more people using the program, the agency will increase the premium rate in 2023 from 0.6% to 0.8%.
Starting Jan. 1, 2023
The total premium rate will be 0.8%.
Employers will pay 27.24% of the total premium and employees will pay 72.76%.
Employers will continue to report each employee's total gross wages, not including tips, and collect premiums up to the Social Security cap. Once an employee meets the Social Security cap, the employer must stop collecting premiums but continue to report their wages.
Businesses classified by the Employment Security Department as having fewer than 50 employees are not required to pay the employer portion of the premium. However, they must still collect the employee premium or pay the employees' premiums on their behalf.
Next steps for employers
Notify your employees that we'll start collecting the new rate on Jan.1, 2023.
Seattle Controller will implement the required changes for payroll clients and we’ll start collecting the new premium rate from employees each pay period. Remember: employers cannot retroactively withhold premiums from employees.
First quarter premiums and reports are due by the end of April 2023.
Feel free to contact us with any questions at firstname.lastname@example.org.
Source: WA ESD