What Is the WA Paid Family and Medical Leave (PFL) Tax?

The Washington State Paid Family and Medical Leave (PFL) tax is a state-mandated program designed to provide financial support to workers during qualifying life events. This program establishes a state fund, ensuring eligible individuals receive partial wage replacement when they need time away from work.

Defining the WA Paid Family and Medical Leave Tax

The Washington Paid Family and Medical Leave tax funds benefits for family and medical reasons. This program covers various circumstances, including an employee’s serious health condition, caring for a family member with a serious health condition, bonding with a new child, or managing qualifying military exigencies. The Washington State Employment Security Department (ESD) is responsible for collecting these premiums and administering the benefits.

The tax consists of two primary components: an employee share and an employer share. These contributions are allocated to fund both medical leave and family leave benefits. For instance, medical leave applies to an individual’s own serious health condition, while family leave covers situations like caring for a sick family member or welcoming a new child. Most employees working in Washington are subject to this tax, with employers generally responsible for collecting the employee’s portion. Employers also contribute their own share, though specific requirements can vary based on the size of the business.

Calculating Contributions

Calculating contributions for the Washington Paid Family and Medical Leave tax involves applying specific rates to an employee’s gross wages. For 2025, the total premium rate is 0.92% of an employee’s gross wages. This rate is typically split between the employee and the employer, depending on the employer’s size.

For employers with 50 or more employees in Washington, the employer pays 28.48% of the total premium, while employees contribute 71.52%. Businesses with fewer than 50 employees are not required to pay the employer portion but must still collect the employee’s share or pay it on their behalf. The tax is applied to an employee’s gross wages, excluding tips.

The annual wage base limit aligns with the Social Security taxable wage base. For 2025, this limit is $176,100. This means that once an employee’s gross wages reach this cap within a calendar year, no further premiums are collected on earnings above that amount. For example, if an employee earns $50,000, their annual contribution would be $50,000 multiplied by 0.92%. If an employee earns $200,000, their contribution would be capped at $176,100 multiplied by 0.92%, regardless of earnings beyond that threshold.

Employer Reporting and Remittance

Employers in Washington have specific responsibilities for reporting wages and remitting Paid Family and Medical Leave premiums. They are required to collect the employee’s portion of the premium through payroll deduction from each pay period. This collected amount, along with the employer’s contribution if applicable, must then be remitted to the Washington State Employment Security Department (ESD).

Reporting and payment are conducted on a quarterly basis. The deadlines for submission are typically the last day of the month following the end of each calendar quarter. Specifically, premiums for January through March (Q1) are due by April 30, April through June (Q2) by July 31, July through September (Q3) by October 31, and October through December (Q4) by January 31 of the following year.

Employers file their quarterly reports and make payments through the SecureAccess Washington (SAW) portal, which serves as the online platform for interacting with the ESD. Employers must report each employee’s total gross wages and hours worked during the reporting quarter, even if no premiums were collected due to the wage base limit.

Self-Employed and Voluntary Coverage

Self-employed individuals in Washington have the option to participate in the Paid Family and Medical Leave program, although their coverage is generally voluntary. Those who choose to opt in must register with the Employment Security Department (ESD) and commit to a period of coverage. This election allows them to access benefits similar to those available to traditional employees.

Contributions for self-employed individuals are calculated based on their net earnings. Once they elect coverage, they are responsible for reporting their self-employment income and remitting the premiums on a quarterly basis, similar to employer reporting requirements.

Beyond self-employed options, employers can also choose to offer a voluntary plan rather than participate in the state-run program. These voluntary plans must be approved by the ESD and must provide benefits that are at least equivalent to those offered by the state plan. Employers seeking to implement a voluntary plan must submit an application, typically accompanied by a fee, and undergo an approval process. Approved voluntary plans also require ongoing reporting to the ESD and may need annual reapproval for the initial years.