Washington Paid Leave Payroll Tax Rises on Jan. 1
On Jan. 1, 2027, Washington’s Paid Family & Medical Leave premium increases to 1.2%, from 1.13%.
Employers will pay 29.3% of the paid leave premium; the employee share is 70.7%. Employers may cover some or all of employees’ share.
Generally, employers with fewer than 50 employees don’t need to pay the employer share unless they receive a small-business assistance grant, which requires them to pay the employer share for three years. They must still collect or cover employees’ premiums.
Employers should notify employees and update payroll before Jan. 1. Premiums apply to gross wages, excluding tips, up to the Social Security wage cap.
Missed employee premiums cannot be withheld retroactively. Q1 reports and premiums are due April 30, 2027.
More info: WA leave premium updates
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