BIAS Help CenterPayroll PFMLAHow Do I Create PFML In Advanced Payroll

How Do I Create PFML In Advanced 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

Thanks to Brian Snure of Snure Law Offices for providing guidance for Volunteer Firefighters in the documents below.  (UPDATED 3/6/18)

"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.  

Also included below is the Memorandum to the 2018 Rural Health Conference:  

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:  Advanced Payroll >Payroll Setup > Benefits & Deductions 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 New
  1. Enter Plan - This is the sequence that they appear on the screen
  2. Enter Description - PFML
  3. Double-click on Vendor - select Employment Security Department - PFML from the vendor list
  4. Group - Other
  5. Basis - Wages
  6. BARS code - Only needed for employer payment (If a benefits BARS code is used for benefits use that code, if unemployment payments are made use that BARS code, if a unique BARS code is desired then create one)
  7. Cap - Yearly
  8. SS/MED/FWT - Check all three (Due to a lack of confirmation from ESD, we are recommending the post tax setup as the safest option)

A custom basis may be required for the wages.  We are waiting for clarification from ESD.

Under the Settings tab

  1. Click Add New
  1. Enter Description - PFML Deduction
  2. Enter Decimal - 0.00253
  3. Enter Cap - 348.38
  4. Enter Employer Dec - 0.00147
  5. Enter Employer Cap - 202.42
  6. Click Save
  7. Click Save

If there are exclusions that are needed such as volunteers that also work as seasonal employees or elected officials, use the Custom Basis button to select the Earning items that are eligible for PFML.

  1. Click Custom Basis
  1. Click Write
  1. Click Edit
  2. Check the Selected boxes to select the eligible Earning Items
SETUP FOR EMPLOYERS UNDER 50 EMPLOYEES AND WITH NO EMPLOYER PORTION INCLUDED

Go to:  Advanced Payroll >Payroll Setup > Benefits & Deductions 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 New
  1. Enter Plan - This is the sequence that they appear on the screen
  2. Enter Description - PMFL
  3. Double-click on Vendor - select Employment Security Department - PFML from the vendor list
  4. Group - Other
  5. Basis - Wages
  6. BARS code - Only needed for employer payment (If a benefits BARS code is used for benefits use that code, if unemployment payments are made use that BARS code, if a unique BARS code is desired then create one)
  7. Cap - Yearly
  8. SS/MED/FWT - Check all three (Due to a lack of confirmation from ESD, we are recommending the post tax setup as the safest option)

A custom basis may be required for the wages.  We are waiting for clarification from ESD.

Under the Settings tab

  1. Click Add New
  1. Enter Description - PFML Deduction
  2. Enter Decimal - 0.00253
  3. Enter Cap - 348.38
  4. Click Save
  5. Click Save

If there are exclusions that are needed such as volunteers that also work as seasonal employees, use the Custom Basis button to select the Earning items that are eligible for PFML.

  1. Click Custom Basis
  1. Click Write
  1. Click Edit
  2. Check the Selected boxes to select the eligible Earning Items

ADD DEDUCTION TO THE EMPLOYEE

Go to:  Advanced Payroll > Payroll Control Center > Employee tab

  1. Select the Employee
  2. Click View
  3. Go to Benefits & Deductions tab
  1. Click Add New
  2. Under Plan Name select PFML from dropdown
  3. Under Plan Category select PFML Deduction from dropdown
  4. 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?

Fire districts that pay L&I monthly and not quarterly, will want to follow the same practice for PFML as the do for L&I.

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