Washington State’s Paid Family and Medical Leave Act

New Reporting and Tax Filing Requirements Begin on January 1, 2019

Washington State’s Paid Family and Medical Leave program will begin collecting premiums from employers and employees beginning on January 1, 2019. For employers, this means new reporting requirements about employees who are based in Washington State, as well as a new withholding from those employees’ pay statements.

Here’s what you need to know

The withholding is 0.4% of gross wages paid each quarter, and it funds paid leave benefits for employees who experience a qualifying event. The employer is responsible for 37% of the premium and may withhold up to the remaining 63% from employee wages.

Employers may elect to pay the employee’s share of the premium, and payroll and HR managers may see pushback from employees asking to be “made whole” after the new withholding. Plan ahead for this change in employee paychecks with proactive communication and by highlighting the employee benefits of the program, which go into effect in 2020.

Under the Paid Family and Medical Leave program, employers with fewer than 50 employees are not required to pay the employer share of the withholding (37% of 0.4% of quarterly gross wages). All employers are required to collect and remit premium payments on their employees’ behalf and abide by the program’s monthly reporting requirements.

PayNorthwest keeps your organization compliant

As part of our software and service, PayNorthwest tracks and reports relevant employees’ hours and wages to Washington State, and files and remits quarterly withholdings required under the new law on your behalf. You’ll enjoy the peace of mind of knowing that your organization is in compliance with current regulations, and you’ll have clear visibility into the tax filings and withholdings throughout your organization.

Get in touch with us to learn more about how PayNorthwest keeps companies with complex payrolls worry-free and tax-compliant.