Washington Paid Family Leave

The Washington Paid Family and Medical Leave program is the state’s implementation of family medical leave insurance (FMLI). It provides employees working in Washington paid time off to care for themselves or a family member.

This tax consists of these components.

• Family Leave Insurance Employee

• Medical Leave Insurance Employer

Before you implement Washington FMLI, there are some areas you need to consider.

• What are the employee eligibility criteria

• How to override the legislative rates and percentages

• How to opt out your organization

• How to exclude individual employees

• How to cost the tax

• What wage basis rules it follows

What are the employee eligibility criteria

To be eligible for the Washington FMLI tax, an employee must have:

1. Valid tax card with a tax reporting unit (TRU) association

2. Washington identified as one of the following

   • Family leave insurance (FLI) state on the person's Tax Jurisdictions card

   • State unemployment insurance (SUI) state on their Tax Withholding card (if FLI state is undefined)

How to override the legislative rates and percentages

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

To change these percentages:

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

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

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

2. Open the calculation card for editing.

3. In Component Groups, select the Washington regional component.

   Create it if it doesn't exist.

4. In Calculation Components, select State FLI.

   Create it if it doesn't exist.

5. Click Enterable Calculation Values on the Calculation Card.

6. Click Create.

7. To change the total tax rate, search for and select FLI combined rate.

   To override the distribution between the employee and employer rates, use these calculation value pairs.

   • FLI employee percentage and FLI employer percentage

   • MLI employee percentage and MLI employer percentage

   Enter them as percentages. For example, enter 50% as 50. The sum of these percentages must equal 100%.

   To override the annual wage limit, use Family leave insurance wage limit.

8. Save your work.

How to opt out your organization

To opt out your organization:

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. Open the calculation card for editing.

3. In Component Groups, select the Washington regional component.

4. In Calculation Components, choose State FLI.

5. Select Enterable Calculation Values on the Calculation Card.

6. Click Create.

7. Search for and select FLI employee tax exemption.

8. In Value, select the appropriate exemption status.

9. Save your work.

How to exclude individual employees

To exclude an individual employee from this tax:

1. Open the person's tax card for editing.

2. Choose the Washington regional component.

3. In Withholding Exemption, select the appropriate exemption for Family Leave.

4. Save your work.

How to cost the tax

To process FMLI 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

What wage basis rules it follows

When configuring the wage basis rules for Washington FMLI, find them under State FLI in the Component Group Rules task.