Washington has announced that premiums for its Paid Family and Medical Leave Insurance Program will increase and that employers must start collecting premiums for the Washington Cares program. The premium requirements will begin on January 1, 2022.
Background:
Washington enacted a paid family and medical leave program and a state-run long-term-care benefits program (WA Cares), which require contributions funded via payroll deductions from either employers, employees, or both. Every quarter, employers in Washington must complete and file a report and remit Paid Family and Medical Leave premiums.
Maximum Paid and Family Leave Contributions:
The premium rate for paid family leave coverage will increase to 0.6% of an employee's gross wages, not including tips, and up to $147,000 (the Social Security cap), on January 1, 2022.
- Employers with 50 or more employees are responsible for 26.78% of the total contribution. Employees are responsible for 73.22% of the total contribution.
- Employers with less than 50 employees are not required to pay the employer portion of the premium. However, small employers that choose to pay the employer contribution are eligible for state grants.
Washington Cares Long Term Care Premiums:
Employers in Washington must also collect from, or pay on behalf of, their employees the WA Cares long-term care premiums, starting January 1, 2022.The premium rate is equal to 0.58% of an employee's gross wages, and it does not have a Social Security cap.
Note: The Washington Economic Security Department is updating the Paid Leave reporting system so employers can report for both programs at the same time.
Compliance Recommendations:
Washington employers should withhold the adjusted Paid Family and Medical Leave and WA Cares premiums as applicable. The state has posted additional resources to further assist employers. Please contact your dedicated service professional with any questions.