Hopefully this new act and tax does not come as a surprise, as we’ve received many notices from Washington State explaining the new system.
In short, WA has enacted a program that will provide Paid Leave to employees–under broad conditions similar to FMLA leave. Employers and Employees should be aware that the taxing portion of this Act starts January 1, 2019, but the benefits are not provided until 2020.
See the following link for more details: https://paidleave.wa.gov/?gclid=CjwKCAiAgrfhBRA3EiwAnfF4tnVzielfJZ0TETvAriZY7rWP5HJ9obkx7xsTa6bZEXPDaHzmE7aZaxoCllAQAvD_BwE
The tax is not large–employees should only see a small premium come out of each of their paychecks (similar to unemployment or other deductions). Employers should also approach payment of this tax similarly to other payroll deductions.
If there are concerns with implementation or taxation of this new program please reach out to your legal counsel, payroll specialist, or accountant to confirm that the appropriate deductions will be made.