Washington Paid Family and Medical Leave (PFML)
Washington PFML is a state-mandated insurance program designed to provide paid leave to employees to receive or give care.
Premium collection and reporting requirements will begin on January 1, 2019. However, employees will be able to use the benefits starting in 2020.
Do I need to participate?
All employers who have employees in Washington state will need to participate in the PFML without exception.
If you are an employer headquartered in a different state but have employees in Washington state, you will also need to participate.
What are the premiums?
The premium for PFML will be collected from both employers and employees. The total premium collected will be 0.4% of gross wages. Please use the state provided premium calculator to see a breakdown of the premiums.
Gross wage (one pay period): $2500
Total premium: $2500 * 0.004 = $10
Employee’s share: $10 * .6333 = $6.33
Employer’s share: $10 * .3667 = $3.67
Can I opt out of premiums?
If you have less than 50 employees:
The employer portion of the premiums is not automatically collected for you. If you would like to opt-in for the employer portion, please reach out to us with the request so that we may start collecting the premium.
Please see the state website for the advantages of opting into the employer premiums: State website
If you have 50 or more employees:
The employer portion of the premiums is automatically collected. You will not be able to opt-out of paying the employer portion of the premiums.
What am I responsible for?
As long as you have an active Washington State Unemployment Account and provided Justworks with access to the account, Justworks will be taking care of the premium collection, remittance, and the quarterly reporting requirements for you. If you do not believe you have an open account or have not provided access to your account to Justworks, please do so immediately as it may impact your employees’ eligibility for PFML.
Can I pay for the employee premiums?
Employers will not be able to cover the employee’s premiums through Justworks. All premium collection will be handled as directed by the general guidelines set forth by Washington state.
Is there a wage cap for premiums?
Premium withholdings are capped at the Social Security cap, $132,900 in 2019.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.