As a small business owner or solo entrepreneur in Washington State, understanding your payroll taxes is crucial, especially with the upcoming WA PFML tax calculation for 2026. The Paid Family and Medical Leave (PFML) program is designed to support your employees during significant life events, but it also means you'll need to accurately calculate and withhold these taxes. This guide will walk you through the steps involved in calculating WA PFML taxes, ensuring you stay compliant with state regulations while managing your payroll efficiently.
Understanding WA PFML Taxes
The WA PFML tax applies to all employers in Washington State. For 2026, the rate is set at 0.74% of each employee's gross wages. This amount is split between the employer and the employee, with 37% of the total being paid by the employer and 63% by the employee. It's essential to know that these taxes are calculated based on the wages paid to employees, up to a maximum of $176,100. This means if an employee earns more than this threshold, the PFML tax will only be calculated on the first $176,100 of their earnings.
Calculating WA PFML Taxes Step-by-Step
1. Determine the employee's gross wages — Start with the total gross wages for the pay period. This includes all forms of compensation such as bonuses and overtime. 2. Apply the PFML tax rate — Multiply the employee's gross wages by the WA PFML rate of 0.74%. This gives you the total PFML tax owed for that employee. 3. Split the tax between employer and employee — Calculate 37% of the total PFML tax for the employer's share and 63% for the employee's share. 4. Report and remit taxes — Ensure that the calculated amounts are reported accurately on your payroll tax filings and remitted to the state by the due date.
Other Washington State Payroll Taxes
In addition to the WA PFML tax, you should also be aware of other payroll taxes applicable in Washington State. The Social Security tax is 6.2% on wages up to $176,100, while the Medicare tax is 1.45% on all wages. The WA Cares Fund tax is another consideration, set at 0.58% of gross wages, aimed at providing long-term care benefits. Lastly, the Washington State Department of Labor and Industries (L&I) tax rates vary by industry and need to be factored into your payroll calculations.
To simplify your payroll tax calculations, use the free payroll tax calculator at micro-payroll.com. It's an easy way to stay compliant and ensure accurate calculations.
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