Paid leave contributions

AN ACT Relating to responding to federal guidance on tax 1
liability issues in the state paid family and medical leave program 2
by modifying the distribution of employer and employee contributions 3
between family and medical leave premiums without affecting how the 4
total premium is divided between employees and employers; and 5
amending RCW 50A.10.030. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:7
Sec. 1. RCW 50A.10.030 and 2025 c 304 s 3 are each amended to 8
read as follows: 9
(1) The department shall assess for each individual in employment 10
with an employer and for each individual electing coverage a premium 11
based on the amount of the individual's wages subject to subsection 12
(4) of this section. 13
(2) The commissioner shall determine the percentage of paid 14
claims related to family leave benefits and the percentage of paid 15
claims related to medical leave benefits and set the family leave 16
premium and the medical leave premium by applying the proportional 17
share of paid claims for each type of leave to the total premium rate 18
set in subsection (6) of this section. 19
Z-0617.2
SENATE BILL 6199
State of Washington 69th Legislature 2026 Regular Session
By Senators Hunt, Alvarado, Nobles, Riccelli, Saldaña, and C. Wilson;
by request of Employment Security Department
Read first time 01/16/26. Referred to Committee on Labor & Commerce.
p. 1 SB 6199
(3)(a) For family leave premiums, an employer may deduct from the 1
wages of each employee up to 40 percent of the full amount of the 2
premium required. 3
(b) For medical leave premiums, an employer may deduct from the 4
wages of each employee up to ((45 percent of)) the full amount of the 5
premium required. 6
(c) An employer may elect to pay all or any portion of the 7
employee's share of the premium for family leave or medical leave 8
benefits, or both. 9
(4) The commissioner must annually set a maximum limit on the 10
amount of wages that is subject to a premium assessment under this 11
section that is equal to the maximum wages subject to taxation for 12
social security as determined by the social security administration.13
(5)(a) Employers with fewer than 50 employees employed in the 14
state are not required to pay the employer portion of premiums for 15
family and medical leave. 16
(b) If an employer with fewer than 50 employees elects to pay the 17
premiums, the employer is then eligible for assistance under RCW 18
50A.24.030. 19
(6)(a) On or around October 20th of each year, the commissioner 20
must calculate the total premium rate as follows: 21
(i) Calculate an amount that equals 140 percent of the prior 22
fiscal year's expenses, including the total amount of benefits paid 23
and the department's administrative costs; 24
(ii) Subtract the balance of the family and medical leave 25
insurance account created in RCW 50A.05.070 as of September 30th from 26
the amount determined in (a)(i) of this subsection (6); and27
(iii) Divide the difference in (a)(ii) of this subsection (6) by 28
the prior fiscal year's taxable wages. The quotient must be carried 29
to the fourth decimal place and then rounded up to the nearest one 30
hundredth of one percent. 31
(b) The commissioner must set the total premium rate at the rate 32
calculated in (a) of this subsection (6) subject to the following 33
conditions: 34
(i) If the commissioner determines the total premium rate 35
calculated in (a) of this subsection exceeds a rate necessary to 36
maintain a three-month reserve at the end of the following rate 37
collection year, the commissioner must set the total premium rate at 38
the minimum rate necessary to close the rate collection year with a 39
three-month reserve; and 40
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(ii) The total premium rate must not exceed 1.20 percent.1
(c) For the purposes of this subsection (6): 2
(i) "Taxable wages" means the total amount of wages subject to a 3
premium assessment under this section for all individuals in 4
employment with an employer and all individuals electing coverage.5
(ii) "Three-month reserve" means the average monthly expenses, 6
including the total amount of benefits paid and the department's 7
administrative costs, in the prior 12 calendar months from the date 8
of the calculation in this subsection multiplied by three.9
(7)(a) The employer must collect from the employees the premiums 10
provided under this section through payroll deductions and remit the 11
amounts collected to the department. 12
(b) In collecting employee premiums through payroll deductions, 13
the employer shall act as the agent of the employees and shall remit 14
the amounts to the department as required by this title.15
(c) On September 30th of each year, the department shall average 16
the number of employees reported by an employer on the last day of 17
each quarter over the last four completed calendar quarters to 18
determine the size of the employer for the next calendar year for the 19
purposes of this section, RCW 50A.24.010, and 50A.24.030.20
(8) Premiums shall be collected in the manner and at such 21
intervals as provided in this title and directed by the department.22
(9) Premiums collected under this section are placed in trust for 23
the employees and employers that the program is intended to assist.24
(10) A city, code city, town, county, or political subdivision 25
may not enact a charter, ordinance, regulation, rule, or resolution:26
(a) Creating a paid family or medical leave insurance program 27
that alters or amends the requirements of this title for any private 28
employer; 29
(b) Providing for local enforcement of the provisions of this 30
title; or 31
(c) Requiring private employers to supplement duration of leave 32
or amount of wage replacement benefits provided under this title.33
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