In December we released an article regarding the new Washington State Paid Family & Medical Leave program. Recently, Washington Employment Security Department has announced that Paid Family and Medical Leave reporting and payments for both Q1 and Q2 are now due on July 31, 2019. Quarter 1 is no longer due on April 30th. This will apply to 2019 only. Please note that unemployment insurance reporting and payment for Q1 is still due on April 30th.
As a reminder, if you have employees (with few exceptions) you will need to take action regarding the Washington State Paid Family & Medical Leave program beginning in January 2019. Below are a few highlights based on the most common questions we have received so far:
- Officers of Corporations are NOT exempt.
- Self-employed individuals CAN opt-in.
- While you are responsible for collecting/remitting payments in 2019, the benefits do not begin until 2020.
- The total amount due per employee is 0.4% up to the SS wage base of $132,900 for a maximum of $531.60 for 2019.
- You can withhold the employee portion of approximately 0.252% from your employee’s paychecks or remit that portion on their behalf. You must make the decision by January 1st and withhold accordingly for the remainder of the year.
- If you have less than 50 employees you are not required to remit the employer portion. As a result, the total you will remit (whether through employee withholding or paying on their behalf) is 0.252% instead of 0.4%.
- Taxes are remitted through the WA Employment Security Department accessed via Secure Access WA (unless you use a payroll provider such as ADP or Paychex who will withhold and remit on your behalf). The first filing and payment is due on July 31, 2019.
For more information, please review the details at https://paidleave.wa.gov/employers#helpcat2010 in addition to the Employer Toolkit https://paidleave.wa.gov/files/Documents/2018.Employer.Toolkit.V1.1.pdf or see the following FAQ’s at https://paidleave.wa.gov/files/Documents/Rollout.FAQ.pdf.
Please contact Managed Accounting Senior Manager, Jordan Reynolds if you have any additional questions or would like to discuss your options.