BIAS Help CenterPayroll PFMLAHow Do I Create PFML In Basic Payroll

How Do I Create PFML In Basic Payroll

Starting in January, 2019, Washington State will begin collecting funding for the new Paid Family & Medial Leave Act.  This is administered by the Employment Security Department.  The combined premium will be a percentage of wages up to $132,900 paid each quarter starting in 2019.  This is to start on the first January payroll regardless of when the hours were worked.

The percentage is .4% if employer portion is included.   The employer minimum portion will be 36.67% of the premium (.147%). Employers may withhold a maximum 63.33% of the premium (.253%) from employee wages if they choose.

The percentage is .253% if the employer portion is not included.  Employers with fewer than 50 employees are not required to pay the employer portion of the premium, but are required to collect & remit the employee portion.  However there are incentives to pay the employer portion.  Please review to determine the best option. 

For more information visit the Employment Security Department website.

PFML CAPS have been updated for 2020.

Collective bargaining agreements

Do you have employees covered under a collective bargaining agreement? Employees covered under a CBA that was in existence on or before Oct. 19, 2017 are not subject to the rights or responsibilities of paid family and medical leave until the agreement is reopened, renegotiated, or expires. You do not withhold premiums from these employees or pay the employer share of their premium until the CBA is reopened, renegotiated, or expires.

Volunteer Firefighters

"bona fide volunteers are not included within the scope of the Act either for purposes of calculating the number of employees and agency has or for purposes of payroll deductions and benefit eligibility."  -- from WFCA email on 12/7/2018.  Full text of the email is available here.

SETUP SEPARATE VENDOR

Even though PFML is being collected by Employment Security, the PFML is considered state funds while Unemployment is considered federal funds.  To keep these separate when paying, it is recommended that the PFML has a unique Vendor.

Go to:  Transactions >Vendor Accounts

  1. Click Add New
  1. Enter Vendor Information.  This can be the same as the existing Employment Security, but add PFML to the name.
  2. Click Save & Close

ESD may eventually create a separate address for PFML.  We will revise this information when it becomes available.

SETUP DEDUCTION - Expand applicable section

SETUP FOR EMPLOYERS OVER 50 EMPLOYEES OR UNDER 50 WITH EMPLOYER PORTION INCLUDED

Go to:  Payroll >Payroll Setup > Benefits & Deduction Plans tab

Examples are based on withholding the maximum from the employee.  If the employer chooses to cover employee cost, adjust decimal values as needed.

  1. Click Add Plan
  1. Enter Plan - This is the sequence that they appear on the screen
  2. Enter Type - Other
  3. Plan Name - PFML
  4. Double-click on Vendor - select Employment Security Department from the vendor list
  5. Ret Basis - unchecked
  6. Check Ret - No
  1. Soc Sec - Yes
  2. Medicare - Yes
  3. FWT - Yes
  4. Participate Employee - Yes
  5. Participate Employer - Yes
  6. Employee Dec % - 0.00253
  7. Employer Dec % - 0.00147
  8. Employee Cap - 336.23
  9. Employer Cap - 195.36
  10. Click Save

Due to a lack of confirmation from ESD, we are recommending the post tax setup as the safest option

Click Update

SETUP FOR EMPLOYERS UNDER 50 EMPLOYEES AND WITH NO EMPLOYER PORTION INCLUDED

Go to:  Payroll >Payroll Setup > Benefits & Deduction Plans tab

Examples are based on withholding the maximum from the employee.  If the employer chooses to cover employee cost, adjust decimal values as needed.

  1. Click Add Plan
  1. Enter Plan - This is the sequence that they appear on the screen
  2. Enter Type - Other
  3. Plan Name - PFML
  4. Double-click on Vendor - select Employment Security Department from the vendor list
  5. Ret Basis - unchecked
  6. Check Ret - No
  1. Soc Sec - Yes
  2. Medicare - Yes
  3. FWT - Yes
  4. Participate Employee - Yes
  5. Participate Employer - No
  6. Employee Dec % - 0.00253
  7. Employee Cap - 336.23
  8. Click Save

Due to a lack of confirmation from ESD, we are recommending the post tax setup as the safest option

Click Update

ADD DEDUCTION TO THE EMPLOYEE

Go to:  Payroll > Payroll Control Center

  1. Select the Employee
  2. Go to Benefits & Deductions tab
  1. Click Add New
  2. Double-click in Plan
  3. Select PFML
  1. Click Save

Repeat steps 1-6 for all applicable employees

PRINTING THE REPORT AND POSTING TO ACCOUNTS PAYABLE

Review your payroll to confirm that the results are as expected.

The PFML needs to be reported quarterly.  When running benefit reports for regular payroll, uncheck PFML from the list.  See How DO I Create PFML Reports?

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