This bill changes how paid family and medical leave premiums are set and administered. It amends existing law (amending RCW 50A.10.030 and RCW 50A.05.050 and related sections) so that the commissioner must set a single total premium rate based on an annual actuarial report, with a maximum total premium of 1.20 percent. The commissioner will apportion that total between family and medical leave by applying the proportional share of paid claims for each; employers may deduct from employee wages up to the full family leave premium and up to 45 percent of the medical leave premium, and may elect to pay all or part of the employee’s share. The commissioner must set the annual maximum wages subject to premiums equal to the Social Security maximum wage. The bill also makes several procedural and administrative changes: employers with fewer than 50 Washington employees are not required to pay an employer share (but may elect to and be eligible for assistance), employers must collect employee premiums by payroll deduction and remit them acting as agents, and the department must determine employer size for the next calendar year by averaging quarterly reported employee counts on September 30. The bill prohibits local governments from enacting local paid family or medical leave programs that alter or locally enforce the cited title or require private employers to supplement benefits. It defines a “four-month reserve” as the actuarially projected average monthly expenses multiplied by four. The bill adds reporting requirements and timelines: an annual department report to the legislature beginning December 1, 2020; annual actuarial reports to the advisory committee beginning January 1, 2023 on the account’s experience and the lowest future rates needed to maintain solvency for four years and to reach a four-month reserve by the end of rate collection year 2030 and thereafter (with 2023–2028 reports also sent to legislative committees); a January 1, 2026 requirement that the office of actuarial services report within 10 business days to the advisory committee and legislative committees if it projects a deficit will not be recovered by the next quarterly premium collections; quarterly departmental reporting to the advisory committee beginning October 1, 2023; and an effective date of January 1, 2028. Important context is missing from the provided text: the specific department named throughout is not identified, the prior premium calculation formula that is being replaced is not included, the detailed content or format of the actuarial “annual report” the commissioner must use is not provided, the specific “title” referenced when restricting local governments is not identified, and statutory definitions for terms such as “commissioner,” “department,” and “rate collection year” are not included in these facts.

If enacted, the law would limit the total paid family and medical leave premium employers and workers pay to no more than 1.20 percent of wages, require the commissioner to set that total based on annual actuarial reports, and split the premium into family and medical portions according to the share of claims. Employers must collect employee contributions through payroll deductions and may withhold up to the full family leave share and up to 45 percent of the medical leave share from wages; employers with fewer than 50 Washington employees are not required to pay the employer portion (but can choose to and receive assistance). The commissioner will also each year cap wages subject to the premium at the Social Security maximum, and the department will use a four-quarter average of reported quarter-end employee counts on September 30 to determine employer size for the next year; local governments are barred from creating separate private-employer leave programs, enforcing the state rules, or forcing private employers to top up benefits. The bill increases actuarial and administrative oversight by mandating regular reports from the office of actuarial services and the department, including quarterly reporting on collections and payments and special quick reporting if a deficit is projected, with an explicit objective to build and maintain a four-month reserve by 2030 and to limit premium volatility. Key implementation details are unclear from the provided text—most notably which state department administers the program, the exact prior premium formula replaced, and some definitional terms—so some operational impacts and who will ultimately bear employer-side costs in larger firms remain uncertain.