Starting January 1, 2025, Washington’s Paid Family and Medical Leave premium rates will adjust to support the program’s sustainability. Premiums, funded by contributions from both employees and employers, are recalculated annually.
Here’s what’s changing:
- New Premium Rate: The premium rate will increase to 0.92%.
- Contribution Breakdown: Employers will cover 28.48% of the premium, while employees will contribute 71.52%.
- Small Business Exemption: Employers with fewer than 50 employees are exempt from the employer portion but must still collect the employee portion unless they choose to cover it.
Next Steps for Employers:
- Notify Employees: Inform your team that the new premium rate applies to wages paid from January 1, 2025, onward.
- Update Deductions: Begin collecting the new rate each pay period from employees’ gross wages (excluding tips). Stop collecting once employees reach the Social Security cap of $176,100.
- Reporting: First-quarter premiums are due by April 30, 2025. Note that retroactive premium collection from employees is not allowed.
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