District of Columbia to Increase Employee Leave Under UPL, Decrease Employer Cost

Mar 14, 2022 | Domestic Workers' Rights, GTM Blog, Tax & Wage Laws

Starting July 1, Washington, D.C. will increase the amounts of leave available to employees under the district’s Universal Paid Leave Act while decreasing the employer payroll tax that funds the leave. Household employers are required to comply with the law.

Update: The District of Columbia’s Fiscal Year 2023 Budget Support Act of 2022 pushes back the start date of the paid leave increase from July 1 to October 1, 2022. The employer payroll tax decrease still went into effect on July 1.

Starting ~~July 1, 2022~~ October 1, 2022, the District of Columbia will increase the amounts of available leave for employees under the district’s Universal Paid Leave Act (UPLA) while decreasing the employer payroll tax that funds the leave on July 1.

Washington D.C. employers who are required to pay unemployment insurance taxes, which includes just about all families that have hired household help, are required to contribute to the Universal Paid Leave Act. Even families with just one employee need to comply with the law.

Learn more about paid leave as a household employer in Washington, D.C.

Expansion of paid leave amount

In fall 2021, the district amended the UPLA, expanding the amount of medical leave available to eligible workers and creating a new category of prenatal leave. The amendments also provided that the district could increase or decrease leave amounts under the UPLA in future years within specified parameters, depending on the size of the Universal Paid Leave Fund.

The district says there is sufficient funding to raise leave amounts to the maximum levels set forth in the 2021 amendments:

12 weeks for qualifying parental, medical and family leave; and
Two weeks for prenatal leave

The new amounts will apply ~~July 1, 2022~~ October 1, 2022, unless the district’s Department of Employment Services (DOES) needs more time to implement the changes.

Once these new maximums are in place, employees will be capped at 12 weeks of paid leave under the UPLA.

Currently, the UPLA provides for a maximum of:

8 workweeks of parental leave;
6 workweeks of family leave;
6 workweeks of medical leave; and
2 workweeks of pre-natal leave

Learn more about paid leave in Washington, DC.

Payroll tax reduction

In addition, the district says that there is sufficient funding in the program to lower the employer contribution rate from the current 0.62 percent to 0.26 percent, also effective July 1, 2022, barring a delay from DOES. The employer contribution rate will be re-evaluated in March 2023.

Note for GTM clients with EasyPay w/Electronic Tax Filing: As part of your comprehensive tax service, we will remit your paid family leave contribution on your behalf by the due date each quarter.

GTM can help

Don’t want the hassles of figuring out how to contribute to paid leave programs? Worried about complying with tax and wage laws? Then consider GTM Payroll Services for all of your payroll, tax, and compliance needs. We will take care of employer and employee taxes making sure they are remitted on time, every time. Payday is easy with free direct deposit for your employee and all taxes calculated and withheld for you. It’s the no-risk, no-hassle, no-worry solution for household payroll. To learn more and for a complimentary, no-obligation consultation with a household employment expert, call (800) 929-9213 or schedule time with us at your convenience.