Beginning on January 1, 2023, the Washington Paid Family & Medical Leave Program’s “total premium” rate rose to 0.8% from 0.6%. This rate is recalculated annually in October, based on contributions from premiums and benefits paid during the previous year.
As was true in previous years, employers must report to the Washington Employment Security Department each Washington employee’s total gross wages, not including tips, and collect premiums up to the Social Security cap ($160,200 in 2023). Once an employee meets the Social Security cap, employers must stop collecting premiums, but they must continue to report employee wages.
Employers with 50 or more people employed will pay at least 27.24% of the total premium, which would require their employees to pay 72.76% of the total premium. Employers with fewer than 50 employees are not required to pay the employer portion of the total premium but must collect the employee portion of the premium or pay it on their behalf. Employers with approved “voluntary plans” under this law should consult with employment counsel about possible modifications to the “voluntary plans.”
For more information about Washington’s Paid Family and Medical Leave program, or other paid leave laws and programs that may affect your organization, please contact a Jackson Lewis attorney.