Washington Paid Family and Medical Leave and Washington Cares Long-Term Care Insurance

In this article:

• Washington Paid Family and Medical Leave
• Setting Up Washington Paid Family and Medical Leave
• Exemption from Washington Family Leave Insurance
• Washington Cares Long-term Care Insurance
• Employee Exemption from Washington Cares

Washington Paid Family and Medical Leave

Background

The state of Washington offers statewide paid family and medical leave benefits to workers. This program is funded both by employees and employers. Most employers are required to participate in this insurance program. Employers can choose to use an employer-operated voluntary plan or the state plan.

For more information, see Washington State Employment Security Department’s website, Washington Paid Family and Medical Leave.

Patriot Software will calculate this tax for all payroll customers and collect, deposit, and file this tax for Full Service Payroll customers. 

Here’s what you need to know:

• Beginning in Jan. 1, 2025, the premium rate is 0.92 percent of each employee’s gross wages, not including tips, up to the 2025 Social Security cap ($176,100). Employers with 50+ employees will pay up to 28.48% and employees will pay 71.52%.
• An employer can elect to pay the employee’s share of the premium.
• Employers with fewer than 50 employees working in Washington are not required to pay the employer portion of the premium.
• Employers of any size, including those with over 50 employees, are permitted to offer a state-approved voluntary plan as an alternative to the state-administered program.
• Premiums must be remitted quarterly during the month following each completed calendar quarter.
• Premium withholdings are capped up to the annual Social Security wage base.
• Tips are not included in gross wages.

As a recap, here are your options depending on your company size for the state insurance plan.

Setting Up Washington Paid Family and Medical Leave

To add or edit the the WA PFML, go to Settings > Payroll Settings > Paid Family and Medical Leave.

Answer the following questions:

1. Are you required to pay the 28.48% employer share of the WA PFML contribution?

• Yes – if you have 50 or more employees and don’t have a private state approved alternative.
  • Based on your responses, the employer is required to pay at least 28.48% of the WA PFML contribution. The employee may be responsible for up to 71.52% of the WA PFML contribution.
• No – if you are exempt from this tax. The Employer share is not required. The employees’ share of the WA PFML contribution is 71.52%.
  • Select the reason in the drop-down and the “effective date” or date that you became exempt or have implemented your state-approved plan. 

2. Would you still like to pay the employer portion of the tax? Yes/No
This question will only show if you have selected you are exempt for the employer share.

• Yes – You want to pay the employer portion for an assistance grant. Then, choose your desired percentage in the formula box at the bottom of the page, and click “Save.”
• No – You do not want to pay the optional employer portion, and click “Save.”

In either case, you must still collect and remit the employees’ share of premiums and meet reporting requirements. 

3. Do you want to pay a portion of your employees’ contribution? Yes/No

The employer can choose to pay some or all of the employee’s 71.52% contribution. You can change the employer contribution percent up to 100%, as long as it equals 100% of the WA PFML.

• Yes – Use the formula box to update your desired percentage and click “Save.”
• No – You do not want to pay any part of the employee’s share. Click “Save.”

Exemptions from Washington Family Leave Insurance

Company Exemption

If you are using the state insurance plan, nearly all employers are required to participate and are not exempt from Washington FLI. Exceptions are listed on the Washington Paid Family and Medical Leave website.

You can mark your business exempt from paying the employer share of the premium by changing the answers to the questions under Settings > Payroll Settings > Paid Family and Medical Leave.

Employee Exemption

If an employee works primarily in Washington, even if they sometimes travel out of state, they are covered by Washington FLI. Employees are not required to be covered if they work in Washington for a short time.
To mark an employee exempt:

• Payroll > Employee List > Select Employee Name > Advanced Tax Settings > Add FLI Exemption Status 
• Change to “Exempt.” 
• Add the date the exemption began.
• Click “Save.”

This will prevent the employee and corresponding employer’s share of tax from calculating for this particular employee.

Washington Cares Long-term Care Insurance

Background:
You need to make an additional deduction from Washington workers’ paychecks for the Washington Cares Fund. The Washington Cares Fund is entirely employee-funded. And most employees must contribute to it. Under the law, Washington workers will pay up to $0.58 per $100 of earnings (or 0.0058 X 100). 

Patriot calculates the Washington Long-term insurance tax, and collects, deposits, and files the tax to the Employment Security Department for Full Service Customers.

The Washington Cares tax will automatically calculate for companies with employees in Washington. You don’t need to select any additional settings unless the employee has requested to be exempt from the state program.

Individual Employee Exemption from Washington Cares

If an employee works primarily in Washington, even if they sometimes travel out of state, they are covered by Washington FLI. Employees are not required to be covered if they work in Washington for a short time.

To mark an employee exempt, go to Payroll > Employee List > Select Employee Name > Advanced Tax Settings > Add Washington Cares Exemption Status and change to “Exempt,” along with the effective date. This will prevent the Washington Cares tax from being calculated for this particular employee.

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