The state of Washington has recently released new guidelines about how Paid Family & Medical Leave should be handled.
To learn more about how this affects your company, feel free to check out this government resource.
How WA Paid Family & Medical Leave is being handled in Zenefits
Currently, employers have the option to cover all, some, or none of the employee portion of the tax. The employee's portion of the tax will be collected every run. If the employer has selected to cover the employee portion, it will be collected from them every pay run. If any payments are missed, they will be collected during the recon process at the end of the quarter.
Note: Employer is liable for the payments if the employee's portion is not withheld during the pay period. The employer portion will be collected at a later time, at which point employers will be notified. Zenefits will send an email once ready to debit for Q1 and Q2. Moving forward, debits will be included in every pay run.
To choose how the tax will be collected:
- Go to the Payroll app on your dashboard.
- Select the Settings tab.
- Click on Taxes from the left hand menu.
- Under WA, there should be a section for Washington Employment Security Department (FLI)
- Select whether or not your company is subject to the employer portion of WA FLI taxes (If Yes is selected, Zenefits will collect these taxes moving forward every pay period).
- Enter the applicable percentage of employee tax that the employer will be covering.
How do I know if my company is subject to WA FLI?
If you have 50 or more employees in Washington, you are responsible for paying the employer portion of the tax. In order to have Zenefits debit and remit these taxes for your company, you must notify us.
Will all of my workers be subject to WA FLI?
Anyone with an assigned work location in WA will be subject to the WA FLI tax. If you do not withhold the employee portion during the pay period, the company is responsible for remitting these payments on their own.