Washington PFML 2027 brings two changes for employers on January 1, 2027: a higher total premium and a new way of dividing employer and employee contributions between the family leave and medical leave portions of the premium.
The split change comes from Second Substitute House Bill 2345 (2SHB 2345), passed in 2026 in response to new IRS guidance on the tax treatment of paid leave. The bill changes how contributions are distributed between family and medical leave premiums. It does not change how the total premium is divided between employees and employers.
Washington PFML 2027 Premium Rate
Beginning January 1, 2027, the Paid Leave premium rate is 1.2% of each employee’s gross wages. The 2026 rate is 1.13%.
Each October, Washington’s Employment Security Department (ESD) recalculates the premium rate based on the prior year’s program usage and premiums collected.
Washington PFML 2027 Employer and Employee Premium Split
For 2027, employers pay 29.3% of the total premium and employees pay 70.7%. For comparison, the 2026 split is 28.57% employer and 71.43% employee.
Under 2SHB 2345, employees pay 100% of the medical leave portion of the premium, and the employer share is applied entirely to the family leave portion. This keeps medical leave benefits from being subject to federal employment taxes.
Small Employer Exemption
Businesses that ESD classifies as having fewer than 50 employees for the 2027 calendar year are not required to pay the employer portion of the premium unless they choose to. These employers must still collect the employee premium or pay employees’ premiums on their behalf.
Washington PFML 2027 Wage Cap
Premiums apply only to wages up to the Social Security wage base, which is $192,300 for 2027. Employers stop collecting premiums once an employee reaches the cap but must continue reporting all of that employee’s wages.
2026 Wages Stay Under the 2026 Rate
The 2026 rate of 1.13% and the 2026 split continue to apply to all 2026 wages, including third- and fourth-quarter 2026 reporting. For the full 2026 rules, including job protection and claim changes, see our breakdown of Washington PFML 2026.
How Employers Should Prepare for Washington PFML 2027
Notify employees that the new withholding rate applies to wages paid on or after January 1, 2027. Premiums cannot be withheld from employees retroactively.
ESD is updating its employer resources online through the end of 2026, including the newest employer guides, the 2027 mandatory poster and the paystub insert. Monthly updates are published in the ESD Employer Newsletter.
Washington is one of several states with paid leave contribution changes for 2027. See also Massachusetts PFML contribution changes for 2027 and Maryland FAMLI.
This article is for general information only and is not legal or tax advice. Speak with your attorney, CPA or industry professional for guidance on your situation.
Employer Resources
- Employer guides, 2027 poster and paystub insert: Updates – Washington State’s Paid Family and Medical Leave
- Newsletter sign-up: ESD Employer Newsletter
Contact Information
Washington’s Paid Family and Medical Leave program, operated by the Employment Security Department:
- Phone: (833) 717-2273
- Help Center: paidleave.wa.gov/help-center
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Frequently Asked Questions About Washington PFML 2027
Below are answers to some of the most common questions about Washington PFML 2027.
What Is the Washington PFML 2027 Premium Rate?
The total premium is 1.2% of each employee’s gross wages for wages paid on or after January 1, 2027, up from 1.13% in 2026.
How Is the Paid Leave Premium Split Between Employers and Employees in 2027?
Employers pay 29.3% of the total premium and employees pay 70.7%. Employees pay all of the medical leave portion, and the employer share goes entirely to the family leave portion.
Why Did Washington Change the Premium Split?
2SHB 2345 was passed in response to new IRS guidance on paid leave taxes. Assigning the medical leave portion entirely to employees keeps medical leave benefits from being subject to federal employment taxes.
Do Employers With Fewer Than 50 Employees Pay the Employer Share in 2027?
Not unless they choose to. They must still collect the employee premium or pay it on employees’ behalf.
What Is the 2027 Wage Cap for Washington Paid Leave Premiums?
$192,300, the 2027 Social Security wage base. Premium collection stops at the cap, but all wages must still be reported.
Can the 2027 Rate Be Withheld Retroactively?
No. The new rate applies only to wages paid on or after January 1, 2027, and premiums cannot be withheld from employees retroactively.
