In Washington, both employers and employees are required to contribute to the Paid Family and Medical Leave program. The contributions can vary: for smaller companies, it might only involve an employee deduction, while larger companies may have both an employee deduction and an employer expense.

All employers may either withhold employees’ premiums from their paychecks or pay some or all of the premiums on their employees’ behalf.  Employers cannot collect missed premiums in later pay periods.

The Paid Family and Medical Leave program is funded through these premiums.

For more details, visit the Washington Paid Family and Medical Leave website.

Starting Jan. 1, 2025:

• The premium rate will increase to 0.92%.
• Employers will pay 28.48% of the total premium and employees will pay 71.52%.
• The premium is calculated on each employee’s gross wages, not including tips, up to the 2025 Social Security cap ($176,100).

In 2024:

• The premium rate will increase to 0.74%.
• Employers will pay 28.57% of the total premium and employees will pay 71.43%.
• The premium is calculated on each employee’s gross wages, not including tips, up to the 2024 Social Security cap ($168,600).

Businesses classified by the Employment Security Department as having fewer than 50 employees for the 2025 calendar year are not required to pay the employer portion of the premium. However, you must still collect the employee premium or pay employees’ premiums on their behalf.

Create/Edit Employee Deduction

1. From the Payroll Command Center, click Payroll Categories.
   
    
2. Click on the Deductions tab.
   
    
3. If the Employee Deduction already exists, click Edit, otherwise click New to create a new deduction.  Provide a Deduction name, ie, PFML - WA - Employee, select type PFML and enter WA State Code.
4. Under Type of Deduction, click on the button for Percent. Enter the contribution rate. For an employer with over 50 employees:
   • 2025 rate is 0.65798% of Gross Wages (71.52% of .92%).
   • 2024 rate is 0.52858% of Gross Wages (71.43% of .74%)
5. In the Deduction Limit, Select the Equals Dollars button and Dollars per Year.
   • 2025 limit amount is $1,158.71 (0.65798 * $176,100).
   • 2024 limit amount is $891.19 (0.528582 * $168,600)

• Click the Employee button at the bottom and select the employees this deduction applies to, then click OK.
  
   

Create/Edit Employer Expense

1. From the Payroll Categories List window click the Expenses tab.
2. If the Employer Expense already exists, click Edit, otherwise click New to Create a New Employer Expense.   Set the Type of Expense to PFML and enter WA State Code.
3. For an employer with over 50 employees the rates are as follows.  For an employer with fewer than 50 employers this employer expense is not required.
   • 2025 PFML rate is 0.26202% of Gross Wages (28.48% of 0.92%).
   • 2024 PFML rate is 0.52858% of Gross Wages (28.57% of 0.74%)this rate must be at 
   •  
4. Set the Wages Limit to:
   • 2025 Wages limit amount is $176,100.
   • 2024 Wages limit amount is $168,600.
5. Click the Employee button at the bottom and select the employees this expense applies to, then click OK.