Washington is modifying its family-leave insurance premium allocations in light of 2025 IRS guidance, under a bill expected to take effect June 12.
The state family-leave insurance tax consists of a medical leave premium and a family leave premium. Second Substitute House Bill 2345 allows employers to deduct the full medical leave portion from employees’ wages. For the family leave portion, employers may only deduct a portion from employees’ wages, and the remainder must be paid through employer contributions.
In contrast, employers may currently deduct the full family leave portion and 45% of the medical leave portion from employees’ wages. ...
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