Universal Paid Leave

As previously reported, employers with employees who perform at least 50 percent of their work in D.C. will be required to contribute to the Universal Paid Leave Program. Employers must pay 0.62 percent of all wages for such employees to fund the program, which will provide paid leave to eligible employees for leaves on or after July 1, 2020.

The employer contributions are scheduled to begin July 1, 2019. NFP’s Benefits Compliance team has received confirmation from D.C. Department of Employment Services, Office of Paid Family Leave, that the employers will owe the 0.62 percent assessment on the second quarter earnings, which is payable in July. In other words, employers need to be working with their payroll provider now to collect the tax on wages beginning April 1, 2019. The office will release final regulations and further clarification soon. They are exploring the option to include the wage reporting and tax payment in the Employer Self Service Portal, which is used for unemployment insurance reporting.

Department of Employment Services, Paid Family Leave Information »