WA PFML Taxable

Technical topics regarding tax preparation.
#1
Posts:
18
Joined:
16-Oct-2021 4:01pm
Location:
Tacoma, WA
For other Washington state tax preparers - what are you advising clients as far as taxability for Paid Family Medical Leave? ESD still has no guidance on this (https://paidleave.wa.gov/question/do-i- ... -benefits/)

Would it be safe to advise the client to prorate the taxable amount based on employer (taxable) vs. employee premiums (non taxable) similar to short term disability?
 

#2
merlin  
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116
Joined:
10-Dec-2014 12:13am
Location:
USA
Did you ever got an answer to that elsewhere?
 

#3
KoiCPA  
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729
Joined:
8-May-2023 1:30pm
Location:
Washington
There hasn't been any firm answer. Other states, such as MA are in the same boat with similar laws, so I've been following those as well.

Washington's practice has been to issue a 1099 for amounts they think are taxable (which is paid family leave) and not to issue a 1099 for amounts they think are nontaxable (which is paid sick leave). While that seems like a reasonable interpretation and it's what I'm following, I really don't have anything more authoritative.
 


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