This bill amends RCW 50A.10.030 to revise how paid family and medical leave premiums are set, collected, and limited. It requires the Employment Security Department to assess a premium for each employed person and each person electing coverage based on wages subject to the statute, directs the commissioner to allocate the total premium between family and medical leave by the proportional share of paid claims, and allows employers to deduct up to 40% of the family leave premium from employee wages and up to 100% of the medical leave premium. Employers may choose to pay any or all of an employee’s share; employers with fewer than 50 employees in the state are not required to pay the employer portion but may elect to and be eligible for assistance under RCW 50A.24.030. Premiums must be collected through payroll deductions, held in trust for program participants, and remitted to the department. The bill prescribes an annual rate-setting procedure to be performed on or around October 20: calculate 140% of the prior fiscal year’s expenses, subtract the account balance as of September 30, and divide the difference by prior fiscal year taxable wages; carry the quotient to the fourth decimal and round up to the nearest one hundredth of one percent. The commissioner must set the total premium at that rate unless a lower rate is needed to maintain a three-month reserve; the total premium rate may not exceed 1.20%. The bill requires the commissioner to set an annual maximum wage base equal to the Social Security Administration’s taxable maximum, defines “taxable wages” and “three-month reserve,” and specifies that employer size for the next calendar year is the average of employees reported on the last day of each quarter over the last four completed calendar quarters. Legally, this is an amendment to existing law focused on administrative and procedural changes to premium assessment, rate calculation, employer collection duties, and preemption of local action. The bill also expressly prohibits cities, towns, counties, and other political subdivisions from creating paid family or medical leave programs that alter this title’s requirements, from enforcing this title locally, or from requiring private employers to supplement duration or wage replacement under this title. The provided text does not include statutory definitions for “commissioner,” “department,” or the full scope of “this title,” nor does it further explain the timing or source details for “prior fiscal year’s expenses,” and no changes to criminal penalties or new crimes are described in the extracted facts.

If enacted, most workers will see payroll deductions for a state-run family and medical leave program with the annual total premium set by a formula the Employment Security Department must run around October 20. Employees can be charged up to 40% of the family leave premium and up to 100% of the medical leave premium through employer payroll deductions, though employers may choose to pay some or all of those employee shares. Employers must collect and remit the premiums, and small employers with fewer than 50 Washington employees are not required to pay an employer share (but can opt in and seek assistance). The commissioner will split the total premium between family and medical leave based on claim experience, the taxable wage base will be capped each year at the Social Security Administration’s maximum, and the total premium is capped at 1.20% with a requirement to consider a three-month reserve when setting rates. Practically, this centralizes costs and collection with employers taking on administrative responsibility for payroll withholding and remittance, creates potential wage reductions for employees through deductions, and leaves small employers with the option to avoid employer-side contributions. The Employment Security Department gains recurring workload to calculate rates, manage the trust account, and enforce collection rules. It is unclear from the provided text who exactly fills the titles “commissioner” and “department,” the broader scope of “this title,” and the exact timing or definition of “prior fiscal year” expenses used in the rate formula.