|
Highlights
Impacted Employers: Employers with employees working in Washington
Effective Date:Jan. 1, 2026
Summary:The Washington State Employment Security Department (ESD) has announced a new Paid Family and Medical Leave (PFML) premium rate beginning Jan. 1, 2026. ESD also reminds employers about other PFML impacts occurring in 2026.
Next Steps:
· ESD indicates that employers should make employees aware of the new rate change and ESD will be updating its employer toolkit to include an updated poster in December.
· ESD also reminds employers that starting on Jan.1, 2026, the new premium rate must be collected each pay period from employees’ total gross wages, not including tips.
Once an employee meets the Social Security cap, collection must stop but wages continue to be reported. The Social Security cap for the 2026 calendar year will increase to $184,500.
· First quarter premiums using the new rate are due by the end of April 2026. Premiums from employees cannot be retroactively withheld.
|
The Details
Premium Increase
Starting on Jan. 1, 2026, the total premium rate will rise to 1.13 percent of each employee’s gross wages, up from 0.92 percent in 2025. Employers will contribute 28.57 percent of the total premium, while employees will pay 71.43 percent. Businesses classified by the ESD as having fewer than 50 employees for the 2025 calendar year are not required to pay the employer portion of the premium. However, such employers must still collect the employee premium or pay employees’ premiums on their behalf.
Other Impacts
Employers are also reminded of additional impacts starting on Jan. 1, 2026 due to legislative changes. These changes include:
· Job protection: Enhances job protection for employees taking Paid Leave from employers with 25 or more employees.
· Health care benefits: Clarifies when employers are required to maintain health care benefits for employees taking job-protected Paid Leave.
· Paid Leave and FMLA concurrence: Provides information to help employers manage job protection when an employee is eligible for both Paid Leave and FMLA.
· Weekly claim minimums: Reduces the minimum amount of time an employee must miss in a week to be eligible for Paid Leave from 8 hours to 4 hours.
· Small Business assistance grants: Expands Paid Leave’s grant program to help small employers with costs related to employees on leave.
Review the details on these impacts here and contact your ADP service professional if you have any questions.