Washington Paid Family Leave

Washington Paid Family and Medical Leave is a tax for employees subject to Washington state unemployment insurance.

This tax consists of multiple components.

• Family Leave Insurance (FLI) for the employee

• Medical Leave Insurance (MLI) for the employee

• MLI for the employer

However, there are some areas you should consider.

• What is the employee eligibility criteria

• How to override the percentage split

• How to opt your organization out of this tax

• How to exclude individual employees

• How to cost the Paid Family and Medical Leave tax

• What wage basis rules it follows

Employee Eligibility Criteria

The payroll process automatically takes this tax on employees when they're subject to Washington state unemployment insurance (SUI) tax.

Override the Percentage Split

The percentage paid for this tax must equal 100%. The state determines the default split.

To change these percentages:

1. To change these taxes at the payroll statutory unit (PSU) level, start the Legal Entity Calculation Cards task from your implementation project.

   Use Legal Reporting Unit Calculation Cards task to change this tax at the tax reporting unit (TRU) level.

   Settings at the TRU level override those at the PSU level.

2. In Component Groups, select the Washington state regional node.

3. In Calculation Components, select State FLI.

   Create it if it doesn't already exist.

   1. Select the Washington regional node in Component Groups.

   2. Click Create in Calculation Components.

   3. In Create Calculation Component, select State FLI.

   4. Select WA.

4. Click Enterable Calculation Values on the Calculation Card.

5. Add the MLI Employee Percentage and MLI Employer Percentage components, and set the appropriate values for each.

   Enter as a percentage. For example, enter 50% as 50.

   The sum of both must equal 100%.

6. Save your work.

Opt Out Your Organization

To opt your organization out of this tax:

1. To opt out at the PSU level, start the Legal Entity Calculation Cards task from your implementation project.

   To opt out at the TRU level, start the Legal Reporting Unit Calculation Cards task.

2. In Component Groups, choose the Washington state regional node.

3. In Calculation Components, choose State FLI.

   Create it if it doesn't already exist.

   1. Select the Washington regional node in Component Groups.

   2. Click Create in Calculation Components.

   3. In Create Calculation Component, select State FLI.

   4. Select WA.

4. Select Enterable Calculation Values on the Calculation Card.

5. Choose Exempt from Family Leave Insurance.

6. In Value, enter Yes.

7. Save your work.

Exclude Individual Employees

To exclude an individual employee from this tax:

1. Use the Calculation Cards task to open the person's Tax Withholding card for editing.

2. Choose the Washington state regional node.

3. In Withholding Exemption, choose Yes for Exempt from Family Leave Insurance.

Cost the Tax

To process FLI taxes, cost these predefined elements using the FLI Tax Calculated or Tax Calculated input value.

• Family Leave Insurance Employee Tax

• Family Leave Insurance Employee Tax Not Taken

• Medical Leave Insurance Employer

For further info, see Payroll Costing of Elements for the US in the Help Center.

Wage Basis Rules

Washington rules follow Social Security wage basis rules.