Washington Payroll Updates - October 2024

Week Of 10.21.2024

Washington Increase in 2025 PFML Premiums Announced

The Washington State Employment Security Department announced an increase in Paid Family and Medical Leave premiums for 2025. The premium rate will rise from 0.74% in 2024 to 0.92% next year, with employers paying 28.48% and employees covering 71.52% of the total premium. The ESD said the increase is due to record-breaking benefit payouts in 2024, totaling $1.35 billion for more than 175,000 workers. The agency added that employers should notify employees that the new rate applies to wages paid on or after January 1, 2025. The ESD will update the employer toolkit, mandatory poster, and paystub insert in November. It is important to note that the premium rate collection on an employee's total gross wages, not including tips must stop once the federal Social Security wage cap is reached ($176,100 in 2025). For more information on Washington's PFML program, see Payroll Guide ¶19,265a.

Washington Unemployment Tax Rate Notices Being Distributed December 9 through 13

Washington state employers should be aware that the Employment Security Department (ESD) plans to distribute unemployment insurance (UI) tax rate notices for the year 2025 between December 9 and 13, 2024, per a spokesperson for the ESD. These notices will inform employers about their individual UI tax rates for the upcoming year. Additionally, the ESD typically updates the UI tax rate calculator and tax rate tables in January, providing employers with tools to better understand and plan for their tax obligations.

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