Washington Paid Family and Medical Leave Premiums: 1.13% in 2026, 1.2% in 2027 and Who Pays the Split
Washington Paid Family and Medical Leave Premiums: 1.13% in 2026, 1.2% in 2027 and Who Pays the Split
The Washington paid family and medical leave program is funded by a payroll premium that employers and employees share. For 2026, the premium is 1.13% of gross wages, up from 0.92% in 2025. It rises to 1.2% in 2027. If you have W-2 employees in Washington, you need to withhold the employee share, decide whether the employer share applies to you, and report and remit the premium to the Employment Security Department (ESD). This guide covers the rates, how the split works, the wage cap, the 2027 benefit change, and the steps to take before your next quarterly report.
This guide is informational only and is not legal or tax advice. Premium rules and rates can change, and ESD's published guidance controls. If your payroll is complicated, or you are deciding whether to opt in to the employer share, talk with a CPA, a payroll provider or an attorney before you act.
What the Premium Funds and Who Owes It
The premium funds Washington's paid family and medical leave benefits, which eligible workers can claim for qualifying leave. It is calculated on gross wages, not net pay, and it is divided between the employer and the employee. Employers are responsible for collecting the employee share from wages and for reporting the premium to ESD each quarter.
2026 Rates and the Employer and Employee Split
For 2026, the total premium is 1.13% of gross wages. The premium is split as follows:
| Tax year | Total premium | Employer share | Employee share |
|---|---|---|---|
| 2026 | 1.13% of gross wages | 28.57% of the premium | 71.43% of the premium |
| 2027 | 1.2% of gross wages | 29.3% of the premium | 70.7% of the premium |
Expressed as a share of each paycheck, the 2026 employer share works out to about 0.32% of wages and the employee share to about 0.81% of wages. Consider an employee who earns $60,000 in gross wages during 2026, all below the wage cap. The total premium is about $678. The employee share is about $484, and the employer share is about $194.
Employers With Fewer Than 50 Employees
ESD classifies employers by size. An employer with fewer than 50 employees owes no employer share unless it opts in. ESD calculates size each September 30 by averaging the employees reported on the last day of each of the last four completed quarters (RCW 50A.10.030), so confirm your size classification and how it affects your status with ESD.
Small employers still have collection duties. Even when you owe no employer share, you must either collect the employee share from wages or pay it on the employee's behalf. Using the same $60,000 example, a small employer that does not opt in owes nothing toward the $194 employer share, but it must still withhold the $484 employee share or pay that amount on the employee's behalf.
The $184,500 Wage Cap
The premium applies only to wages up to the Social Security taxable maximum. For 2026, that cap is $184,500 under RCW 50A.10.030. Wages above the cap carry no premium. For an employee earning $200,000, the premium applies only to the first $184,500, which comes to about $2,085 for the year at the 2026 rate, with the same split applying. This guide does not list the 2027 wage cap, so check that figure with ESD before you update your payroll settings.
What Changes in 2027
For 2027 wages, the premium increases to 1.2% of gross wages, and the split shifts to 29.3% employer and 70.7% employee. The maximum weekly benefit also increases, but the change depends on when the claim is filed, not when the wages were earned.
| Item | 2026 | 2027 |
|---|---|---|
| Premium rate | 1.13% | 1.2% |
| Employer and employee split | 28.57% and 71.43% | 29.3% and 70.7% |
| Maximum weekly benefit | $1,647 | $1,727 for claims filed on or after January 1, 2027 |
| Minimum weekly benefit | $100 | $100 |
A claim filed before January 1, 2027 is subject to the $1,647 maximum, even if benefits are paid in 2027. Employees who file in 2027 will see the higher cap.
Q3 and Q4 2026 Reports: Which Rate to Use
Employers keep using the 2026 rate and split for their Q3 and Q4 2026 reports. That means 1.13% of gross wages, with 28.57% assigned to the employer and 71.43% to the employee. Do not switch to the 2027 figures for these reports.
Q3 reports are due in October. Since today is October 26, 2026, many employers have only days left. If you have not filed your Q3 2026 report, file it now, and confirm the exact due date on ESD's website.
SHB 2345 and Shifts Between the Family and Medical Premiums
SHB 2345, passed in 2026, shifts amounts between the family leave premium and the medical leave premium after new IRS guidance. It changes how amounts are allocated between those two components. It does not replace the total rates in the tables above. Because the allocation can affect how the premium is reported, ask ESD how SHB 2345 applies to your filings before you change your payroll settings.
Common Mistakes to Avoid
- Applying the 2027 rate too early. Q3 and Q4 2026 reports still use 1.13% and the 2026 split.
- Assuming a small employer owes nothing. Under-50 employers that do not opt in still must collect or pay the employee share.
- Ignoring the wage cap. Premiums on 2026 wages stop at $184,500.
- Guessing your size status. ESD calculates size each September 30 from your reported quarterly employee counts, so confirm your classification with ESD.
- Treating SHB 2345 as a separate rate. It reallocates amounts between the family and medical premiums, so confirm its effect with ESD.
Steps to Take Now
- Confirm your size classification with ESD, which calculates it each September 30 from your reported quarterly employee counts.
- Check that your payroll software uses 1.13% with the 28.57% and 71.43% split for Q3 and Q4 2026 wages.
- File your Q3 2026 report and remit the premium before the October due date. Confirm the date on ESD's website.
- Before 2027 payrolls run, update the rate to 1.2% and the split to 29.3% and 70.7%, and confirm the 2027 wage cap with ESD.
- Tell employees that the maximum weekly benefit rises to $1,727 for claims filed on or after January 1, 2027.
- If you have fewer than 50 employees and are considering the employer share, ask ESD about the opt-in process and talk with a CPA about the cost.
Where to Confirm the Numbers
ESD administers the program and is the authority for rates, reporting and benefits. Start at paidleave.wa.gov and the agency's main site at esd.wa.gov. The wage cap statute is RCW 50A.10.030, which you can read through the Washington State Legislature's RCW site. Business registration and the state business license are handled by other agencies, including the Department of Revenue, but premium reporting for this program runs through ESD.
Because payroll obligations, size status and any opt-in decision depend on your specific facts, get advice from a qualified CPA or payroll professional before you change your filings. This guide is informational only and is not legal or tax advice.