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Set up D.C. Paid Family Leave

by Intuit Updated 2 months ago

Learn how to set up QuickBooks Payroll to track paid family leave in the District of Columbia.

The District of Columbia (Washington D.C.) has implemented Paid Family Leave. The employer will pay the tax and it'll be filed along with the unemployment wage filing data. If you have full service payroll, we'll pay and file this tax for you.

How the D.C. Paid Family Leave program works

  • The tax rate is 0.26% of taxable wages and has no wage limit.
  • The taxability of wages is the same as the unemployment wages but with no upper limit.
  • There is no impact to any Federal forms.
  • There are no exemptions from this tax.
  • Any employer subject to (State Unemployment Insurance) SUI is subject to DC Paid Family Leave.

For more information on paid family leave, see District of Columbia Paid Family Leave.

Add D.C. Paid Family Leave to employees

Note: Not sure which payroll service you have? Here's how to find your payroll service.

Add the rate in your company tax settings.

  1. Go to Settings ⚙ and select Payroll settings.
  2. Next to D.C. tax, select Edit to view your rates.
  3. Next to DC Paid Family and Medical Leave, select Change or add new rate and choose the rate and enter an effective date.
  4. Select OK to save

Taxes will deduct from your employees paychecks on the effective date.

If you have already run payroll before setting up this rate, the employee will have any catch-up amounts deducted from their next paycheck.

Download and install the latest payroll update payroll update.  When you add a new or an employee that is subject to D.C. Paid Family leave, the tax will appear on the Other tab in the Taxes window.  

Important: If you’re asked if this rate is part of the UI rate, select No. The tool will create two new payroll items related to the DC  tax.

To verify the tax was added for each employee.

  1. Go to Employees and select Employee Center.
  2. Double-click the employee's name to open the Edit Employee window.
  3. Select the Payroll Info tab and select Taxes.
  4. In the Taxes screen that pops up, select the Other tab.
  5. Verify the DC - Paid Family Leave line is listed.
  6. Select OK twice to close the window.

Add your account number or update your rate for this tax. 

  1. Go to Lists then Payroll Item List.
  2. Double-click the payroll item called DC - Paid Family Leave.
  3. Select Next until you get to the Agency for company-paid liability window.  Next to Enter the number that identifies you to the agency window enter your account number.
  4. Select Next.
  5. Verify your rate.
  6. Select Next then select Finish.

If you have already run payroll before setting up this rate, the employee will have any catch-up amounts deducted from their next paycheck.

Frequently Asked Questions (FAQ)

If an employer pays unemployment tax on an employee for a quarter, then the employee will automatically be presumed to be a covered employee for paid family leave.

Covered employers can rebut this presumption by submitting documentation showing that the employee doesn't meet the PFL definition for a covered employee for that quarter. Presumption rebuttals for covered employees will be decided on a case-by-case basis. The documentation should show that the employee:

  • Worked at least 50% of their work time in a single jurisdiction outside of the District, and
  • Their work time in the jurisdiction was not incidental in nature, temporary or transitory in nature, or consisting of isolated transactions.

Employers are required to submit the same wage information for their employees that they currently submit in the UC-30. Employers will submit this information on the same reporting schedule and online portal as they currently do for UI.

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