Small businesses: 150 employees or fewer
Small businesses: Your role and how you benefit
Every business is required to file a quarterly report with the Employment Security Department.
- Unlike the federal unpaid Family and Medical Leave Act (FMLA), every Washington small business is required to participate in the state’s Paid Family and Medical Leave program.
- When you submit your report, you will also pay the premiums you collected from your employees or that you are contributing yourself.
Paid Leave is funded through premiums paid by employers and employees
As of 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). Estimate your premium.
Of this, employers with 50+ employees will pay up to 28.57% and employees will pay 71.43%.
Businesses with fewer than 50 employees do not have to pay the employer portion of premiums.
NOTE: Beginning July 1, 2023, employers will collect WA Cares premiums from employees the same as for Paid Leave—ESD is updating the Paid Leave reporting system so employers can report for both programs at the same time.
- The WA Cares premium rate is 0.58 percent of each employee’s gross wages— there is no Social Security cap.
- The WA Cares premium is paid by the employee. Employers won’t pay any share of premiums for their employees.
- Learn more about WA Cares reporting.
How is business size calculated?
Paid Leave calculates your business’s size on Sept. 30 of each year. The calculation is used to determine your business size for the next calendar year. It is based on your average employee headcount over the previous four quarters as reflected in your quarterly reports. It is not calculated by full-time equivalent (FTE) positions.
Note: If your business size changes, we will send a letter in November to the address listed in your Paid Leave account.
Premiums (mandatory for all employees)
The premium can be withheld from your employees’ paychecks, or your business can pay it on their behalf as an added benefit.
Businesses with 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).
Of this, employers with 50+ employees will pay up to 28.57% and employees will pay 71.43%.
Employer premium opt-in
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 for calendar year 2024 is open until March 1. To opt in:
- Download and complete the small employer premium opt-in form.
- Submit your completed form by mail or fax before March 1, 2024.
- Employment Security Department
Paid Family and Medical Leave
P.O. Box 19020
Olympia, WA 98507-0020 - Fax: 833-535-2273
- Employment Security Department
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 wage your 2024 wage reports each quarter until Dec. 31, 2024.
Financial help for small businesses
Small business assistance grants are here!
These grants provide up to $3,000 to help cover costs associated with employees who take approved Paid Family and Medical Leave. Learn more about eligibility, requirements and the application process in the help center.