13 September 2018 Washington employers — get ready for family leave insurance premiums in 2019 Washington employers are reminded that employee/employer premiums to fund a new disability insurance program that will provide employees with paid family and medical leave begin January 1, 2019. As we reported previously, 2017 SB 5975 creates a disability insurance program administered by the Washington Employment Security Department (ESD) that will provide for paid family and medical leave, funded by employee payroll tax deductions and employer contributions. Washington joins California, District of Columbia, New Jersey, New York and Rhode Island as states that have enacted paid family and medical programs. (EY Payroll NewsFlash Vol. 18, #137, 8-9-2017.) Effective January 1, 2019 through December 31, 2020, a premium rate of 0.4% will be in effect, with employers required to approximately pay 37%, and employees 63%, of the premium. Employers may choose to pay 100% of the premium. A taxable wage limit will be established each year by the EDS commissioner, capped at the Social Security wage base in effect. Employers with 50 or fewer employees are exempt from the requirement to pay the employer share of the premiums, though they may choose to do so. Tribes and self-employed individuals, including independent contractors, may opt-in to the program. Self-employed individuals who elect coverage pay only the employee share of the premiums. Eligible individuals will be able to apply for benefits beginning January 1, 2020. Washington employees will be able to take up 12 weeks of paid leave, as needed, to care for themselves or a family member in times of serious illness or injury, for certain military connected events, or as parental leave to bond with a new child. For more information, see the Department's website. See EY Payroll NewsFlash Vol. 18, #226, 12-27-2017 for information on the various states that have, or will have, paid family leave insurance programs. See also our special report.
Document ID: 2018-1806 | |||||||||
