Configure WAPFML-Type Deduction Code

To be able to generate the Washington State Paid Family and Medical Leave report, you need to track the corresponding employee deductions using a deduction code that has a deduction type of WAPFML (Washington Paid Fam & Med Lv) on the Manage Deductions screen.

Employers must first determine whether they will cover any portion of the employee’s premium and set up the WAPFML-type deduction code in Costpoint accordingly. You would then assign the WAPFML-type deduction code to all eligible employees on the Manage Employee Deductions screen to deduct for the employee-paid portion of the premium. You would also assign the deduction code to all eligible employees on the Manage Employee Contributions screen to accrue the employer-paid portion of the premium.

Note: Note that the example below is based on the State of Washington's requirements which can be amended in the employee's favor (the employer may opt to pay more than 0.1467% of the premium to help pay some of the employee premium). Additionally, the percentages in the example are based on the Washington State Employment Security Department's 2019 regulations. The values may change in the following years.

This is example of how the WAPFML-type Deduction Code could be set up in Costpoint for employers with 50 or more employees if they opt to have the employee pay the 63% of the .4% of gross wages.

To set up the WAPFML-Type Deduction Code in 2019:

  1. Click People > Payroll > Deductions > Manage Deductions.
  2. Specify a unique deduction code to represent the Washington Paid Family and Medical Leave deduction/contribution.
  3. Select WAPFML as the deduction type.
  4. In the Deduction section of the Details tab, enter the following, and then set other deduction values as needed:
    OptionDescription
    Rate

    0.2533% (which is the combination of 100% of the Family Leave premium and 45% of the Medical Leave premium). Calculated as follows:

    (0.4% x 1/3) + (0.4% x 2/3 x 45%)

    = (0.4% x .333333) + (0.4% x .666667 x 45%) 

    = 0.001333 + 0.0012

    = 0.2533%

    Ceiling Amount

    336.68

    Washington State regulations state the amount of wages subject to a premium assessment is capped at the maximum wages subject to social security tax.  In 2019, the social security wage limit is 132,900.00. The Ceiling Amount must be manually calculated and entered each year, based on the following formula:  SS Wage Limit x Deduction Rate %. In 2019, this is 132,900.00 x 0.2533%, which results in a Ceiling Amount of 336.68.

  5. In the Contribution section of the Details tab, enter the following, and then set other contribution values as needed:
    OptionDescription
    Rate

    0.1467%. Calculated as follows:

    0.4% x 2/3  x 55%

    = 0.4% x 0.666667 x 55%

    = 0.1467%

    Ceiling Amount

    194.92

    Washington State regulations state the amount of wages subject to a premium assessment is capped at the maximum wages subject to social security tax. In 2019, the social security wage limit is 132,900.00. The Ceiling Amount must be manually calculated and entered each year, based on the following formula:  SS Wage Limit x Deduction Rate %. In 2019, this is 132,900.00 x 0.1467%, which results in a Ceiling Amount of 194.92.

  6. Click Save.