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Average annual wage in Washington grew 7.5% in 2021

The state average annual wage was $82,508 in 2021—7.5% higher than 2020’s average wage. In 2020, the average wage had increased by 10.1%, which is the largest increase ever. The increase in 2021 is the second largest, according to the Employment Security Department (ESD). (ESD emailed this information out this morning but the news release […]

Paid family and medical leave program balance has gone negative

Back in January, the Employment Security Department (ESD) estimated that the paid family and medical leave (PFML) program would be in cash deficit in March or April. At a meeting of the PFML Advisory Committee on Wednesday, ESD said that cash flow has fallen below zero this month. Indeed, on Wednesday, the account’s balance was […]

Unemployment insurance, long-term care, and paid family and medical leave in the budget proposals

Unemployment insurance (UI), the long-term care (LTC) program, and the paid family and medical leave (PFML) program are all funded by payroll taxes. UI and PFML payroll taxes increased this year, and the LTC payroll tax briefly went into effect for the first time. There has been significant legislative action on all three this session, […]

Senate passes bill that would reduce unemployment insurance taxes

Yesterday the Senate passed ESSB 5873 by a vote of 48–1. As passed by the Senate, the bill would reduce the unemployment insurance (UI) cap on costs to be recovered by the social tax for 2022 and 2023. (For more background, see here.) In 2021, the social cost factor was limited to 0.5%. Under current […]

Paid family and medical leave financial troubles have escalated quickly

Late last week the Employment Security Department (ESD) revised upward its estimates of the amount of money that could be needed to address the expected cash deficit in the paid family and medical leave (PFML) program. Gov. Inslee’s budget proposal would appropriate $82 million from the general fund–state (GFS) to cover any cash deficit in […]

Long-term care program delayed

Gov. Inslee has signed SHB 1732 and ESHB 1733. As adopted, SHB 1732 delays implementation of the state’s long-term care program by 18 months. If employers have withheld any premiums this month, they have 120 days (from the date of collection) to refund them to employees. Long-term care premiums will now be assessed beginning July […]

Paid family and medical leave bill would use federal relief to shore up account

As I wrote yesterday, there are serious concerns about the solvency of Washington’s paid family and medical leave (PFML) program. A Senate committee approved a bill on Wednesday that would add some actuarial requirements to the program. Today, Sen. Lynda Wilson introduced SB 5959. In the short term, the bill would appropriate $125 million from […]

New actuarial requirements have been proposed for the paid family and medical leave program

In response to the emerging paid family and medical leave (PFML) program financial situation, legislators have modified SB 5649. Originally, the bill would have made various benefit changes to the program. Yesterday the Senate Labor, Commerce & Tribal Affairs Committee approved a substitute bill that would make fewer benefit changes and would add several actuarial […]

Paid Family and Medical Leave premium rate may need to increase to 0.8% next year, as program faces a possible cash deficit

At a Ways & Means (W&M) Committee work session on Jan. 18, the Employment Security Department (ESD) provided an update on the paid family and medical leave program. According to the update, “ESD is currently concerned about the fund’s solvency.” They expect the account to have a cash deficit in March or April. (As I’ve […]

SB 5873 would lessen some of the impact of two payroll tax increases

In a policy brief last year, we wrote about how UI taxes work and how they were increasing due to the pandemic. The UI tax rate is made up of three taxes, including a social tax. The social tax is based on the amount by which systemwide benefits exceed systemwide revenue. Generally, the amount of […]