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District of Columbia Paid Family Leave Program

Overview 

Starting July 1st, 2020, the Washington, D.C. Paid Family Leave Program will allow eligible employees to take time off to bond with a new child, care for a close relative with a serious health condition, or care for one’s own serious health condition. This program is employer-funded and will be calculated as a separate quarterly tax based on gross wages paid to employees.

The Washington, D.C. Office of Paid Family Leave will begin collecting payments in July 2019 for wages of the previous quarter (April, May, and June). 

Square Payroll will calculate and collect these premiums and will remit the payments every quarter on the employer’s behalf.

Learn more about Washington, D.C. Paid Family Leave from the Department of Employment Services website.

Supported Paid Leave Benefit Types

The act provides for three types of paid leave benefits:

  • Parental Paid Leave: Employees are entitled to up to eight weeks of paid parental leave, which may be taken within one year following the birth of a child, placement of a child for adoption or foster care, or placement of a child where the eligible individual legally assumes and discharges parental responsibility.

  • Family Paid Leave: Employees are entitled to up to six weeks of paid family leave under the act so the employee can provide care or companionship to a family member who has a diagnosis or occurrence of a serious health condition.

  • Medical Paid Leave. An eligible employee is entitled to two weeks of paid medical leave following his or her diagnosis or occurrence of a serious health condition.

Reporting Requirements

In order to remit Paid Family Leave payments and filings, you will use the same account your business has to remit unemployment payments via the Employer Self-Service Portal (ESSP). 

Paid Family Leave wage information for employees will be filed on Form UC-30 (Quarterly UI Contribution and Wage Report). Employers do not need to submit two wage reports for unemployment tax and Paid Family Leave tax, as the UC-30 will cover wages for both.

Square Payroll will handle this payment and filing for your business. Once the filing is complete, it will be posted to your Tax Forms tab in your online Square Payroll Dashboard. 

Exemptions

Self-employed employers are automatically exempt and will need to opt-in if they wish to be part of the program. Employers with their own paid leave benefits, including short-term disability plans, are still required to participate in the Paid Family Leave program. 

Employees that are exempt from Washington, D.C. Unemployment Insurance taxes are also exempt from the Paid Family Leave tax. Any employee that spends more than 50% of their work time in a single jurisdiction outside of Washington D.C., or if their work time in Washington D.C, is temporary or transitory in nature, may also be exempt from Paid Family Leave benefits. 

If you or your business are exempt from this program, please contact support so we can update your Payroll account.

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