Washington DC Paid Family Leave

The Washington DC Family Leave Insurance program is the state's implementation of family medical leave insurance (FMLI). It provides employees paid time off to care for themselves or a family member.

This tax consists of the Family Leave Insurance Employer component.

Before you implement DC 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

For further info, see the following sections.

What are the employee eligibility criteria

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

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

2. DC 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

To override the legislative tax rates and percentage distribution between the employee and employer components:

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 DC 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%.

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 DC 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. Open the Washington DC component for editing.

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

4. Save your work.

Cost the Tax

To process FLI taxes, cost this predefined element using the FLI Tax Calculated input value.

• Family Leave Insurance Employer

Wage Basis Rules

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