Premium collection for the new WA Cares program began with the July 10, 2023 paycheck. The implementation of this new program also brings about changes to how wages and hours are reported to the Employment Security Department for both Paid Family and Medical Leave (PFML) and Long-Term Services and Supports Trust (LTSS) / WA Cares program.
OFM sends a file to ESD at the end of each calendar quarter with the wages paid during the reporting quarter and the associated hours worked. Since PFML premiums and reporting requirements were implemented, OFM sends the dollars and hours from technical wage type /787 RE EE Family Leave Insur.
Beginning with the October 2023 quarterly report to ESD, OFM will report the wages and hours from technical wage type /7B3 RE EE WA Cares Fund LTC T. A new field will also be added to this file that indicates whether the employee is flagged as exempt from LTSS for the reporting quarter.
Since only one wage type amount and hours will be sent to ESD, it is extremely important that agencies accurately code any PFML and LTSS exemptions in HRMS.
For employees whose work is non-localized and not liable for PFML and LTSS premiums: Use exemption status “Y” indicating Exempt, not reportable for all PFML and LTSS tax types (087, 099, 100, and 113). This coding will mean that premiums are not collected and the employees will not be included in the ESD quarterly report.
For individuals paid through HRMS who agencies have determined are not liable for PFML and LTSS premiums: Use exemption status “Y” indicating Exempt, not reportable for all PFML and LTSS tax types (087, 099, 100, and 113). This coding will mean that premiums are not collected and the employees will not be included in the ESD quarterly report.
For employees who have received an exemption approval letter from ESD: Use exemption status “R” indicating Exempt, reportable for the LTSS tax type only (113). This coding will mean that premiums are not collected for LTSS, premiums will be collected for PFML, the employee’s wages and hours will be included in the ESD quarterly report under wage type /7B3, and the employee will be reported with a LTSS exemption flag. Please note that when an employee is flagged as exempt, they will be reported as exempt for the entire quarter.
If an agency incorrectly uses the exemption status “Y” (Exempt, not reportable) in HRMS for employees with an ESD approved exemption, then premiums will be collected for PFML but wages and hours will not be reported for that employee. This will create issues with ESD billing and agency account reconciliation, so it is extremely important to use the correct exemption status in HRMS.
OFM is creating a new report in HRMS so that agencies can view the data reported to ESD. This report will be similar to the existing PFML Quarterly Wages Premiums & Hours Report, except it will be based on the new reporting wage type (/7B3). OFM is also adding tax type exemption status information to Washington Workforce Analytics (WWA). Additional communications will be sent once these new reporting tools are available.
