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Employers subject to Washington D.C. Paid Family Leave must report and remit paid family leave contributions by July 1, 2019. Employers can submit their contributions through the Employers Self-Service Portal (ESSP), which is currently used by employers to submit their unemployment insurance contributions.

Compliance Snapshot

Employers subject to DC PFL must:

  1. Record covered workers’ wages;
  2. Report and remit premiums quarterly, starting July 1, 2019;
  3. Post mandatory notice at all worksites;
  4. Inform employees of DC PFL annually, upon hire, and when paid family leave is needed; and
  5. Keep certain wage and leave records for at least 3 years.

Background:

Washington D.C Paid Family Leave (DC PFL or program) was passed by the district in 2016 and is administered by the Office of Paid Family Leave (OPFL). The program is funded entirely by employer contributions, which is a percentage of covered employees’ wages. Employers submit contributions quarterly and the first contribution (for April 1, 2019 to June 30, 2019) is due July 1, 2019. Eligible individuals can start applying for paid leave benefits starting on July 1, 2020.

 FAQ

 Am I a covered employer subject to DC PFL?

All DC employers who are required to pay unemployment insurance tax for their covered workers are subject to DC PFL.

 Which employees are covered under DC PFL?

Covered employers must remit contributions on behalf of all workers who predominantly work in DC (meaning they work less than 50% in another jurisdiction). Covered employers must remit contributions on behalf of all covered employees, even if they currently provide additional leave to their employees.

What amount of contributions do I have to remit on behalf of my employees?

Paid family leave contributions are entirely funded by employers. Premiums are 0.62% of employers’ quarterly payroll, based on the immediate past quarter of gross or total wages paid to covered employees. There is no cap on the amount of wages subject to the tax.

When do I remit contributions?

Employers must report wages and pay contributions quarterly through the Employers Self-Service Portal (ESSP) used by employers to submit required unemployment insurance contributions to the district. Employers will be subject to interest and penalties if they report later than the last day of the month in which the report was due.

Quarter Due Date/Final Deadline
Quarter 1 (Jan 1- March 31) April 1/April 30
Quarter 2 (April 1- June 30) July 1/July 31
Quarter 3 (July 1- Sept 30) Oct 1/Oct 30
Quarter 4 (Oct 1- Dec 31) Jan 1/Jan 30

 

Do I need to notify my employees about DC PFL or post notice at my worksites?

 Yes, employers have posting and notice requirements.

  • Posting: Employers must post a notice at each workplace. If covered employees work remotely or predominately telework, employers must send them a copy of the notice so they can hang it at their individual worksite.
  • Notice: Employers must provide notice (in paper or electronic form) to employees annually, upon hire, and when paid family leave is needed.

Notice and posting penalties: Employers are subject to penalties for failure to post or deliver notice, which is $100 for each covered worker who did not receive a notice and $100/day for failure to post notice.

What are my recordkeeping requirements?

Employers must keep the following records for at least 3 years:

  • Employees’ social security number (or tax identification number), pay period dates, wages, and dates of employment;
  • Dates employees took covered leave, copies of the leave notices they gave to employees, and records of disputes regarding PFL; and
  • All copies of required written notices given to workers and documents describing benefits including short-term and long-term disability policies, sick leave, vacation leave, and other paid and unpaid leave policies.

Employer Resources:

The information and materials on this blog are provided for informational purposes only and are not intended to constitute legal or tax advice. Information provided in this blog may not reflect the most current legal developments and may vary by jurisdiction. The content on this blog is for general informational purposes only and does not apply to any particular facts or circumstances. The use of this blog does not in any way establish an attorney-client relationship, nor should any such relationship be implied, and the contents do not constitute legal or tax advice. If you require legal or tax advice, please consult with a licensed attorney or tax professional in your jurisdiction. The contributing authors expressly disclaim all liability to any persons or entities with respect to any action or inaction based on the contents of this blog.

Emerald Law– Emerald is a Client Compliance Consultant for Sequoia, where she works with our clients to optimize and streamline benefits compliance. In her free time, Emerald enjoys stand-up comedy, live music and writing non-fiction.