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How Do I Create PFML In Advanced Payroll - WA state

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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 $176,100 (the 2025 SS Cap) paid each quarter.  

Beginning Jan 1, 2025 The total percentage is .92% if the employer portion is included. The employee pays pays 71.52% of the .92% What does this mean? It means .92 * 71.52%  = .00658 which is the figure to put in the EE decimal field. If your entity has 50 or more employees, your entity needs to also pay the employer portion. The employer portion is .00262. and goes in the ER decimal field. Together, the EE decimal and the ER decimal make up the .92%.  https://paidleave.wa.gov/updates/  Less than 50 employees, the employer portion is optional.

The caps are:  Employee cap: $1158.74 which gets entered into the EE Cap Field and the Employer cap: $461.38 which gets entered into the ER Cap Field. Both caps entered without the $. The caps are figured out by taking the SS Cap $176,100 * .00658 = $1158.74 (employee cap) and taking the SS Cap $176,100 * .00262 = 461.28 (employer cap).

Timing: Do not change the PFML 2024 rates until you're read to create the first payroll of 2025, regardless of the date range for the hours being paid. The first paycheck dated in 2025 will need to have these new rates. Does not matter if the time worked was from December. If the paycheck is going to be written in 2025, these are the rates used for the PFML deduction.

Special Circumstances:

*** If your entity has less than 50 employees, your entity is not required to pay the employer portion. The only amount you will enter is the .00658 in the EE decimal field. Some entities choose to pay this for their employees. If your entity is paying for the employees and not deducting it from the employees, the .00658 would go in the ER decimal field.

*** If your entity has 50 or more employees and your entity is choosing to pay the employee and employer share then the decimal to enter would be .0092 in the ER decimal field.

*** These are special circumstances where some entities choose to pay the employee's share instead of taking the deduction from the employees.

Previous years information:  

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). The wage cap in 2024 is $168,600 (the SS Cap) which makes the employer PFML cap: $355.75 and the employee PFML cap: $891.89.

2023:  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 2025. The rates and caps will need to be manually updated in the benefits and deductions.  

PFMLA_Wage_and_hour_inclusion_OTS-9845-2_For_F.pdf

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:  

SnureLawOffice_VolunteerCompensationMemorandum.pdf

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

  1. Click Add New
  1. Enter Vendor Information.  This can be the same as the existing Employment Security, but add PFML to the name.
  2. Click Save & Close

ESD may eventually create a separate address for PFML.  We will revise this information when it becomes available.

SETUP DEDUCTION - Expand applicable section

SETUP FOR EMPLOYERS OVER 50 EMPLOYEES OR UNDER 50 WITH EMPLOYER PORTION INCLUDED

Modern View: Go to:  Advanced Payroll>Payroll Control Panel > Cog Wheel in the upper right hand corner > Setup > Benefits and Deductions tab

Classic view: Go to: Advanced Payroll >Payroll Setup > Benefits & Deductions tab

Examples are based on withholding the maximum from the employee.  If the employer chooses to cover employee cost, adjust decimal values as needed.

  1. Click Add New
  1. Enter Plan - This is the sequence that they appear on the screen
  2. Enter Description - PFML
  3. Double-click on Vendor - select Employment Security Department - PFML from the vendor list
  4. Group - Other
  5. Basis - Wages
  6. BARS code - Only needed for employer payment (If a benefits BARS code is used for benefits use that code, if unemployment payments are made use that BARS code, if a unique BARS code is desired then create one)
  7. Cap - Yearly
  8. SS/MED/FWT - Check all three (Due to a lack of confirmation from ESD, we are recommending the post tax setup as the safest option)

A custom basis may be required for the wages.  We are waiting for clarification from ESD.

Under the Settings tab

  1. Click Add New
  1. Enter Description - PFML Deduction
  2. Enter Decimal - 0.00658
  3. Enter Cap - 1158.74
  4. Enter Employer Dec - 0.00262
  5. Enter Employer Cap - 461.28
  6. Click Save
  7. Click Save

 

If there are exclusions that are needed such as volunteers that also work as seasonal employees or elected officials, use the Custom Basis button to select the Earning items that are eligible for PFML.

  1. Click Custom Basis
  1. Click Write
  2. Click Edit
  3. Check the Selected boxes to select the eligible Earning Items
SETUP FOR EMPLOYERS UNDER 50 EMPLOYEES AND WITH NO EMPLOYER PORTION INCLUDED

Modern View: Go to:  Advanced Payroll>Payroll Control Panel > Cog Wheel in the upper right hand corner > Setup > Benefits and Deductions tab

Classic view: Go to: Advanced Payroll >Payroll Setup > Benefits & Deductions tab

Examples are based on withholding the maximum from the employee.  If the employer chooses to cover employee cost, adjust decimal values as needed.

  1. Click Add New
  1. Enter Plan - This is the sequence that they appear on the screen
  2. Enter Description - PMFL
  3. Double-click on Vendor - select Employment Security Department - PFML from the vendor list
  4. Group - Other
  5. Basis - Wages
  6. BARS code - Only needed for employer payment (If a benefits BARS code is used for benefits use that code, if unemployment payments are made use that BARS code, if a unique BARS code is desired then create one)
  7. Cap - Yearly
  8. SS/MED/FWT - Check all three (Due to a lack of confirmation from ESD, we are recommending the post tax setup as the safest option)

Under the Settings tab

  1. Click Add New
  1. Enter Description - PFML Deduction
  2. Enter Decimal - 0.00658
  3. Enter Cap - 1158.74
  4. Click Save
  5. Click Save

If there are exclusions that are needed such as volunteers that also work as seasonal employees, use the Custom Basis button to select the Earning items that are eligible for PFML.

  1. Click Custom Basis
  1. Click Write
  1. Click Edit
  2. Check the Selected boxes to select the eligible Earning Items

ADD DEDUCTION TO THE EMPLOYEE

There are two ways to add the deduction to the employee's payroll record:

Method 1: Apply To Employees button Method:

From the Benefits and Deductions tab in Payroll Setup

  1. Highlight the PFML benefit/deduction
  2. Click the Apply to Employees button
  3. Change the Setting to PFML Deduction
  4. Choose the Group or Leave the Group set to All and check the Select For All Positions checkbox
  5. Click Apply
  6. Select Yes to apply plan to all employees.

The deduction has been applied to all or the selected group of employees.

Method 2: Add the benefit/deduction manually to each employee account

Go to:  Advanced Payroll > Payroll Control Center > Employee tab

  1. Select the Employee
  2. Click View
  3. Go to Benefits & Deductions tab
  1. Click Add New
  2. Under Plan Name select PFML from dropdown
  3. Under Plan Category select PFML Deduction from dropdown
  4. 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?

Fire districts that pay L&I monthly and not quarterly, will want to follow the same practice for PFML as the do for L&I.

Next Article How Do I Create PFML In Basic Payroll

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