Started in January, 2019, Washington State collects funding for the Paid Family & Medial Leave Act. This is administered by the Employment Security Department. The combined premium will be a percentage of wages up to $168,600 (2024 SS Cap) paid each quarter.
Beginning Jan 1, 2024 The percentage is .74% if the employer portion is included. The employer minimum portion will be 28.57% of the premium (.211% or .00211). Employers may withhold a maximum of 71.43% of the premium (.529% or .00529) from the employee wages if they choose. (If they choose means that employers have the choice of paying the employee portion along with the employer portion (if applicable). For more information about the 2024 requirements, click the following link: https://paidleave.wa.gov/updates/
In 2024, the Social Security Wage Cap is: $168,600 which makes the employer PFML cap: $355.75 and the employee PFML cap: $891.89.
Previous years information:
2023 (Yes, 2023 is a previous year now haha): The percentage is .8% if the employer portion is included. The employer minimum portion will be 27.24% of the premium (.218% or .00218). Employers may withhold a maximum of 72.76% of the premium (.582% or .00582) from the employee wages if they choose. (If they choose means that employers have the choice of paying the employee portion along with the employer portion (if applicable). For more information about the 2023 requirements, click the following link: paidleave.wa.gov/updates/
In 2023, the Social Security Wage Cap is: $160,200 which will make the employer PFML cap be: $349.24 and the employee PFML cap be: $932.36.
2022: The percentage for 2022 was .6% if the employer portion is included. The employer minimum portion will be 26.78% of the premium (.161%). Employers may withhold a maximum of 73.22% of the premium (.439%) from employee wages if they choose.
The percentage is .439% if the employer portion is not included. Employers with fewer than 50 employees are not required to pay the employer portion of the premium, but are required to collect & remit the employee portion.
In 2022, the Social Security Wage Cap was: $147,000 which makes the employer PFML cap be: $236.67 and the employee cap be: $645.33
2021: The percentage for 2021 was .4% if employer portion is included. The employer minimum portion will be 36.67% of the premium (.147%). Employers may withhold a maximum 63.33% of the premium (.253%) from employee wages if they choose. The percentage is .253% if the employer portion is not included. Employers with fewer than 50 employees are not required to pay the employer portion of the premium, but are required to collect & remit the employee portion)
For more information visit the Employment Security Department website.
PFML CAPS have been updated in the help system for 2024. We do not update the PFML deductions in the program as each entity's deduction is based on the number of employees and their decisions on whether or not to pay the employee's share.
Collective bargaining agreements
Do you have employees covered under a collective bargaining agreement? Employees covered under a CBA that was in existence on or before Oct. 19, 2017 are not subject to the rights or responsibilities of paid family and medical leave until the agreement is reopened, renegotiated, or expires. You do not withhold premiums from these employees or pay the employer share of their premium until the CBA is reopened, renegotiated, or expires.
Volunteer Firefighters
Thanks to Brian Snure of Snure Law Offices for providing guidance for Volunteer Firefighters in the documents below. (UPDATED 3/6/18)
"bona fide volunteers are not included within the scope of the Act either for purposes of calculating the number of employees and agency has or for purposes of payroll deductions and benefit eligibility." -- from WFCA email on 12/7/2018. Full text of the email is available here.
Also included below is the Memorandum to the 2018 Rural Health Conference:
SETUP SEPARATE VENDOR
Even though PFML is being collected by Employment Security, the PFML is considered state funds while Unemployment is considered federal funds. To keep these separate when paying, it is recommended that the PFML has a unique Vendor.
Go to: Transactions >Vendor Accounts
- Click Add New
- Enter Vendor Information. This can be the same as the existing Employment Security, but add PFML to the name.
- Click Save & Close
SETUP DEDUCTION - Expand applicable section
Go to: Payroll >Payroll Setup > Benefits & Deduction Plans tab
Examples are based on withholding the maximum from the employee. If the employer chooses to cover employee cost, adjust decimal values as needed.
- Click Add Plan
- Enter Plan - This is the sequence that they appear on the screen
- Enter Type - Other
- Plan Name - PFML
- Double-click on Vendor - select Employment Security Department from the vendor list
- Ret Basis - unchecked
- Check Ret - No
- Soc Sec - Yes
- Medicare - Yes
- FWT - Yes
- Participate Employee - Yes
- Participate Employer - Yes
- Employee Dec % - 0.00529
- Employer Dec % - 0.00211
- Employee Max - 891.89
- Employer Max - 355.75
- Click Save
The caps are based on the 2024 social security cap of 168,600 times the respective decimal rates.
Due to a lack of confirmation from ESD, we are recommending the post tax setup as the safest option
Click Update
Go to: Payroll >Payroll Setup > Benefits & Deduction Plans tab
Examples are based on withholding the maximum from the employee. If the employer chooses to cover employee cost, adjust decimal values as needed.
- Click Add Plan
- Enter Plan - This is the sequence that they appear on the screen
- Enter Type - Other
- Plan Name - PFML
- Double-click on Vendor - select Employment Security Department from the vendor list
- Ret Basis - unchecked
- Check Ret - No
- Soc Sec - Yes
- Medicare - Yes
- FWT - Yes
- Participate Employee - Yes
- Participate Employer - No
- Employee Dec % - 0.00529
- Employee Max - 891.89
- Click Save
The cap is based on the 2024 social security cap of 168,600 times the respective decimal rate.
Due to a lack of confirmation from ESD, we are recommending the post tax setup as the safest option
Click Update
ADD DEDUCTION TO THE EMPLOYEE
Go to: Payroll > Payroll Control Center
- Select the Employee
- Go to Benefits & Deductions tab
- Click Add New
- Double-click in Plan
- Select PFML
- Click Save
Repeat steps 1-6 for all applicable employees
PRINTING THE REPORT AND POSTING TO ACCOUNTS PAYABLE
Review your payroll to confirm that the results are as expected.
The PFML needs to be reported quarterly. When running benefit reports for regular payroll, uncheck PFML from the list. See How DO I Create PFML Reports?