Washington’s paid family and medical leave premium for 2026 is 1.13% of gross wages, applied to earnings up to the Social Security wage cap of $184,500. Employees pay 71.43% of that premium and employers with 50 or more employees pay the remaining 28.57%. Every employer, regardless of size, withholds the employee share from each paycheck and remits it to the Employment Security Department (ESD) each quarter.1Washington State’s Paid Family and Medical Leave. Updates
The 2026 Rate and Wage Cap
The total premium rate of 1.13% took effect January 1, 2026, up from 0.92% in 2025.1Washington State’s Paid Family and Medical Leave. Updates ESD recalculates the rate each year based on the trust fund’s solvency and projected benefit payouts, so it moves up or down annually.
The premium applies only to wages up to the Social Security taxable maximum, which is $184,500 for 2026.2Social Security Administration. Maximum Taxable Earnings Once an employee’s year-to-date gross wages cross that ceiling, stop withholding. You still report the higher wages on your quarterly filings, but the premium calculation ends there.
The cap runs per employer, not per employee. If someone works two jobs, each employer tracks wages against the $184,500 limit independently, and a worker with significant earnings at both jobs may pay premiums on more than $184,500 in combined wages. Washington does not currently offer employees a refund process for that kind of overpayment.3Washington State’s Paid Family and Medical Leave. Employer Wage Reporting and Premiums Toolkit
Which Wages Count
The premium is based on gross wages, but not every dollar qualifies. Tips are excluded entirely. Bonuses and commissions are included because they fall within the statutory definition of remuneration for personal services.4Washington State Legislature. Washington Code 50A.05.010 – Definitions This trips up employers in tipped industries most often. Apply the 1.13% to regular pay, overtime, bonuses, and commissions; leave tips out.
How the Premium Splits Between Employer and Employee
For 2026, the employee share is 71.43% of the total premium and the employer share is 28.57%. Employers with fewer than 50 employees are not required to pay the employer portion, though they can choose to. Every employer, regardless of size, must still withhold the employee share and remit it quarterly.5Washington State’s Paid Family and Medical Leave. Employers
The 50-employee threshold is based on your average headcount over the previous four completed quarters.5Washington State’s Paid Family and Medical Leave. Employers
Behind the blended percentages, Washington law splits the premium into two components. The employee owes 100% of the family leave portion and up to 45% of the medical leave portion; the employer’s share comes entirely from the medical leave side, covering the remaining 55%.6Washington State Legislature. Washington Code Chapter 50A.10 – Premiums The 71.43%/28.57% figures ESD publishes are the blended result. For payroll purposes, the blended percentages are all you need.
Calculating the Withholding
The math is straightforward. Multiply gross wages (excluding tips) by 1.13% to get the total premium. Multiply that total by 71.43% to find the employee’s paycheck deduction. If you have 50 or more employees, the remaining 28.57% is your cost.
For an employee earning $3,000 in a pay period:
- Total premium: $3,000 × 0.0113 = $33.90
- Employee withholding: $33.90 × 0.7143 = $24.22
- Employer share (50+ employees): $33.90 × 0.2857 = $9.69
An employer with fewer than 50 employees collects only the $24.22 employee share and remits that amount to the state.
Track each employee’s year-to-date gross wages carefully so you stop withholding once cumulative wages reach $184,500. If you miss a withholding, that becomes your problem. Under Washington law, an employer who fails to withhold the employee share is treated as having elected to pay that portion itself.1Washington State’s Paid Family and Medical Leave. Updates You cannot take a larger deduction from a future paycheck to make up the difference.
Quarterly Reporting and Payment
Employers report wages and remit premiums through ESD’s online portal each quarter. The deadlines are:
- Q1 (January–March): due April 30
- Q2 (April–June): due July 31
- Q3 (July–September): due October 31
- Q4 (October–December): due January 31
Each report lists every employee who performed services in Washington that quarter, along with total gross wages, total hours worked, and calculated employee and employer premium amounts. Reports cover wages actually paid during the quarter, not wages earned earlier.
Payment for the withheld employee share and, where applicable, the employer share must accompany the report. Pay electronically through the ESD portal so the payment links to the wage data.
Late filing or late payment triggers penalties and interest. Interest runs from the original due date, and penalty charges escalate the longer the account is delinquent. Filing on time avoids the separate late-filing penalty even if payment slips.
Fixing Errors and Requesting Refunds
To amend a filed report, log in to the ESD portal, go to Wage Reporting, and select Amend Wage Report. The amendment method must match how you filed originally: manual entries can be amended by manual entry or CSV upload, but uploads must be amended by upload. You’ll pick a reason such as incorrectly reported wages, employees mistakenly included or excluded, data entry errors, or audit corrections. Questions can go to paidleave@esd.wa.gov with your UBI number in the subject line.7Washington State’s Paid Family and Medical Leave. File Your Quarterly Report and Pay Premiums
Overpayments become a credit on your ESD account. You can request a cash refund if the credit is $50 or more and you’re current on all quarterly reports. Email paidleave@esd.wa.gov with “Refund Request” in the subject line and include your business name, UBI number, phone number, and mailing address. Refunds under $50 are processed only if the business has closed or expects no future payroll.3Washington State’s Paid Family and Medical Leave. Employer Wage Reporting and Premiums Toolkit
Remote and Multistate Workers
The premium applies to work performed in Washington, and the program uses a localization test for employees who work across state lines. Work is localized in Washington when all services happen here, or when most of the work happens in Washington with only occasional tasks elsewhere.8Legal Information Institute. Washington Administrative Code 192-510-070
When work isn’t localized in any single state, the rules look at secondary factors in order: the employee’s base of operations, where the work is directed or controlled from, and finally where the employee lives. If any of those points to Washington, the employee is covered.8Legal Information Institute. Washington Administrative Code 192-510-070 A remote worker living in Washington but employed by an out-of-state company may still be subject to the premium if the work is directed from Washington or if residence becomes the tiebreaker.
Notice and Recordkeeping
Beyond the premium itself, every employer must post ESD’s mandatory PFML notice where other employment notices are displayed. When you learn an employee is dealing with a qualifying event, you must send them a state-provided notice within five business days letting them know they may be eligible for benefits.9Washington State’s Paid Family and Medical Leave. Your Role and Responsibilities Washington also requires payroll records to be kept at least three years, which is what ESD would review in a premium audit.10Washington Department of Labor and Industries. Payroll and Personnel Records
Self-Employed Workers and Corporate Officers
Self-employed people (sole proprietors, independent contractors, partners, joint venturers) are not automatically covered. They can opt in by filing a written notice of election with ESD for an initial minimum of three years, with renewals of at least one year. Election must cover both family and medical leave; you can’t pick one.11Washington State Legislature. Washington Code 50A.10.010 Those who elect coverage pay only the employee share (71.43% of the 1.13% rate for 2026) and become eligible for benefits after working 820 hours in Washington during the qualifying period following their election.12Washington State’s Paid Family and Medical Leave. Estimate Your Paid Leave Payments
Corporate officers are treated differently. They are not considered self-employed under the program, so they’re covered automatically and their wages are subject to standard premium and withholding rules.13Washington State’s Paid Family and Medical Leave. How Paid Leave Works
Voluntary Plans as an Alternative
An employer can run its own paid leave program instead of participating in the state plan, but the plan must be approved by ESD before it takes effect. To qualify, the plan must match or exceed the state plan on leave duration, weekly benefit amount, and qualifying reasons for leave.14Washington State’s Paid Family and Medical Leave. Voluntary Plans You can submit a plan for family leave, medical leave, or both. Job protection provisions must also match or exceed the state’s if you meet the applicable size threshold.15Washington State’s Paid Family and Medical Leave. Voluntary Plan Guide
Initial approval runs three years, during which the employer files quarterly reports with ESD to show ongoing compliance. Employers with an approved plan don’t pay state premiums for the covered leave type, but they take on claims management, benefit calculations, and the work of keeping the plan current. If ESD denies the plan, standard premiums continue while any appeal is pending, and a plan that later loses approval requires immediate transition back to the state program with continued benefits for anyone already on leave.15Washington State’s Paid Family and Medical Leave. Voluntary Plan Guide