January 1 brings some important payroll tax changes for employers:
PFMFL tax rates:
Total premiums are now 0.8% of total gross wages up to the social security cap.
- Employers are required to pay 27.24% of the premium and employees pay 72.76%.
- Employers should continue to report all employees’ total gross wages (excluding tips)
- Employers with fewer than 50 employees are not required to pay the employer portion of the premium, but must still collect the employee premium or pay the employees’ premiums on their behalf
More information can be found here: 2023 Paid Family & Medical Leave Premiums.
WA Long Term Care Act
Employers and employees will also want to prepare for the WA Cares Act (Long-Term Care) deduction which is set to begin on July 1st, 2023.
Additional information on this tax can be found here.
SOC Code Reporting for Unemployment
Effective Q4 of 2022, Employment Securities changed requirements for all Unemployment filings and employers must now report a SOC code for each class of employee they have.
You can find more information here: NEW: SOC code reporting required.
SS Wage Limit Increase
The wage limit for Social Security Taxes has increased to $160,200 for 2023.
If you have any questions regarding the Payroll Changes above, get in touch.