Small businesses: 150 employees or fewer

Employer size is calculated each year based on the number of employees previously reported.  

Smaller employers (fewer than 50 employees) do not have to pay the employer portion of premiums.  

Larger employers (50 or more employees) pay the employer portion of the premiums.  

Learn more about premium calculations and employer sizing in the Employer Wage Reporting and Premiums Toolkit.  

On September 30 of each year, we average your employee headcount over the previous four quarters using your quarterly wage reports. We use “No Payroll” and processed wage reports in our calculation but not missing reports. It is not calculated by full-time equivalent (FTE) positions. 

If you have not been in business in Washington long enough to report four calendar quarters by September 30, we calculate your business size by averaging the number of employees reported over the quarters for which reporting exists. 

Businesses with an average of fewer than 50 employees do not have to pay the employer portion of the premium, but employees at small businesses pay their portion, just like employees at large businesses. Employers must still remit the employee portion of the premium, and the employees are fully eligible to receive Paid Leave. 

Starting Jan. 1, 2024, the premium rate is 0.74 percent of each employee’s gross wages, not including tips, up to the 2024 Social Security cap ($168,600). 

You cannot collect missed premiums in later pay periods. 

Small business assistance grants provide up to $3,000 to help cover costs associated with employees who take approved Paid Family and Medical Leave.

Grants are available for employers with 150 or fewer employees who:

1. Had an employee take Paid Family and Medical Leave.
2. Incurred costs related to the employee taking leave.

You may apply for up to 10 grants each year, one per employee on leave.

Employers with an active Voluntary Plan are not eligible for a grant. Employers with outstanding or delinquent wage reports or with overdue premium payments are also not eligible.

What you’ll need when you apply

The first time you apply, you’ll need to provide your bank account and routing number so that we know where to send your payment if you’re approved.

For the grant application itself, you’ll need:

• The name, Social Security number or Individual Taxpayer Identification Number, leave dates and claim ID (if you have it) for the employee who took leave.
• The type of grant you’re applying for and how much money you’re requesting.
• An explanation of how the costs are related to the employee who took leave and documentation that supports your request.
  • For wage-related costs, provide receipts, personnel or payroll records, signed statements or other written documentation to show your costs. Each document must show the date the cost was incurred.
  • For adding a new employee to your payroll, documentation that shows the new employee’s name, start date and Social Security number. The documentation should also clearly show the business’s name.

How to apply

Before you apply, review our application checklist and make sure you have all the information you’ll need before you start the process.

Then:

• Log in to your Paid Leave employer account.
• Under “More” on the top ribbon, you’ll find the small business assistance grant information and application page.

Grant types

There are two types of grants, each with a different payment amount:

If you added a new employee to your payroll to replace an employee on Paid Leave, you can apply for the grant to cover adding a temporary employee, up to $3,000.

If you did not add a new employee to your payroll but had other wage-related costs like paying additional wages to an existing employee, using a temp agency or purchasing additional equipment, you can apply for a wage-related costs grant of up to $1,000.

When to apply

Apply for a grant between the date ESD approves your employee’s paid family or medical leave and up to four months after their leave ends.

You must apply for a grant no later than four months following the last day of the employee’s paid family or medical leave.

Additional requirements for employers who receive a grant

If you have fewer than 50 employees, you will be required to pay the employer share of the premium for all employees for three years (12 quarters) after receiving a grant. The additional premiums will be assessed quarterly when you submit your reports. You can estimate your additional premium costs with our premium calculator.

If you have between 50 and 150 employees, you already pay the employer share of the premium and do not have additional requirements.

The application for small business assistance grants is available now. Log in to your employer account to apply.

Although employers with fewer than 50 employees are not required to pay the employer share of the premium, small businesses that want to contribute to the program can do so by opting in on an annual basis. The enrollment period is open until March 1 every year. To opt in:

• Download and complete the small employer premium opt-in form.
• Submit your completed form by mail or fax between January 1 and March 31.
  • Employment Security Department
    Paid Family and Medical Leave
    P.O. Box 19020
    Olympia, WA 98507-0020
  • Fax: 833-535-2273

Once we’ve reviewed your opt-in form, we’ll send you a letter confirming you’re opted in and you’ll be assessed the employer share of the premium when you file your wage reports each quarter until the end of the calendar year.