2024 - Rates changed.

Employers with 50 or more employees working in the state of Washington will pay 27.24% of the 0.8% premium (0.21792% of wages) and employees will pay 73.22% (0.439% of wages).

Employers with at least one employee but fewer than 50 employees working in the state of Washington are obligated to payroll deduct 72.76% (0.58208% of wages) of the 0.8%. Employers can always choose to pay the 0.58208% even though not obligated and can apply for small business assistance.

As we understand the rules, the 2023 rate will be .8% of gross income,  and your employees will each contribute 72.76% of that, or .58208%.

What you need to do to set up MaxxTraxx to calculate that for each employee is the following:

1. Click on Setups/Accounting and Payroll/Other Payroll Deduction Items
   
2. Click Add Payroll Item.
   
3. Click Add Payroll Item (again.)
4. Click Next (leaving dot on User defined tax)
   
5. Click Next (leaving dot on Paid by the employee)
   
6. Enter PFML23 in Item Code
   
7. Enter Paid Fam & Med Leave in Description
   
8. Click Next
   
9. Click Select (for Liability Account).  At this point, if you do not already have a liability account set up for your PFML account, you can do that here.  Otherwise, highlight the appropriate GL account and click on Select.  To add a new GL account, click Add G/L Acct and fill in the fields for GL Account # (choose a number that had not been used before), Description (Suggest using Paid Fam & Med Leave) and Type (Current Liability). Click OK and Select
   
10. Click Next
    
11. We saw nothing in the law that suggested these funds needed to be noted on your W2, so unless you know otherwise, click Next leave the dot in None.
    
12. Click Next, leaving the dot in Gross pay
    
13. Click Next on the Allowances, etc. page
    
14. Enter 0.5821% as the Rate, leaving the dot in Percentage.
    
15. Enter 160,200 as the Maximum Earnings field (which will calculate and fill in the Maximum Collected amount for you.)
    
16. Click Finish,
    

You have now created the custom tax format.  Next, you will need to apply it to each employee.  Here's how:

1. Click on Payroll/Employee List
   
2. Highlight and Edit each employee and  do the following to each
   
3. Click on Payroll Items
   
4. Click Add Payroll Item
   
5. Highlight the PFML and click Select
   
6. Click OK and do the same for each employee.
   

As you run payroll for each employee, you will see the amount withheld in the box marked Other Deductions in the lower right area of the paycheck calculation form.  If for any reason, you find the amount to be incorrect you can click Edit and enter the correct amount.  We can figure what was wrong with the calculation after you've finished your payroll.

The amount you've withheld will be in the GL account you set up.  When you submit your quarterly payment to the state you will disburse your check to that account.