State Law Alerts – December 2022 Washington

Washington: PFML Premium Rate Increases for 2023

Starting on January 1, 2023, Washington’s Paid Family & Medical Leave premium rate will increase as follows:

• The total premium rate will be 0.8 percent.
• Employers will pay 27.24 percent of the total premium and employees will pay 72.76 percent. Employers can choose to withhold the entire 72.76 percent from an employee’s paycheck or can cover all or some of the premium on their behalf.
• Employers will continue to report each employee’s total gross wages, not including tips, and collect premiums up to the Social Security cap. Premium withholdings are capped at the Social Security cap, which is annually updated and will be $160,200 in 2023. Employers must stop collecting premiums—but continue to report an employee’s wages—once the employee meets the Social Security cap.
• Businesses classified by the Employment Security Department as having fewer than 50 employees are not required to pay the employer portion of the premium. However, they must still collect the employee premium or pay the employees’ premiums on their behalf.

Employers must also provide notice that they will start collecting the new rate from their employees for each pay period on January 1, 2023. Employers can’t retroactively withhold premiums from employees and first-quarter premiums and reports are due by the end of April 2023.  Resourcing Edge will notify employees of the new rates.

The premium rate increased because the Washington State Employment Security Department recalculates it on September 30 of each year, and the adjustments are based on contributions from premiums and benefits paid during the previous year.

Washington Requires Pay Ranges in Job Postings

Beginning January 1, 2023, employers with at least one employee based in Washington and 15 or more employees total will be required to post a wage scale or salary range in job postings. Postings must also include a general description of all the benefits and other compensation, like bonuses, paid time off, or profit-sharing, offered for that position. These requirements only apply to job postings that include qualifications for applicants.