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The Office of Paid Family Leave (OPFL) published this FAQ to inform businesses of an important update regarding the Paid Family Leave (PFL) program in the District of Columbia.
On July 1, 2024, the Paid Family Leave (PFL) tax rate increased from 0.26% (0.0026) to 0.75% (0.0075) of the wage paid to each covered employee pursuant to section 12(a) of the Fiscal Year 2024 Revised Local Budget Emergency Act of 2024, effective July 8, 2024 (D.C. Act 25-499; D.C. Code § 32-541.03). The first payment at the 0.75% (0.0075) rate is due October 31, 2024 for wages reported during Quarter 3, 2024 (July 1, 2024 through September 30, 2024).
The tables below set forth the tax rate for each quarter, the beginning and end dates of the quarter and the due dates for payment.
Tax Rate Table (Calendar Year 2024)
| Quarter | Tax Rate | Quarter Dates | PFL Tax Due Date |
|---|---|---|---|
| Quarter 1 | 0.26%, 0.0026 | 1/1/2024-3/31/2024 | 4/30/2024 |
| Quarter 2 | 0.26%, 0.0026 | 4/1/2024-6/30/2024 | 7/31/2024 |
| Quarter 3 | 0.75%, 0.0075 | 7/1/2024-9/30/2024 | 10/31/2024 |
| Quarter 4 | 0.75%, 0.0075 | 10/1/2024-12/31/2024 | 1/31/2025 |
PFL Tax Rate Table (Calendar Year 2025)
| Quarter | Tax Rate | Quarter Dates | PFL Tax Due Date |
|---|---|---|---|
| Quarter 1 | 0.75%, 0.0075 | 1/1/2025-3/31/2025 | 4/30/2025 |
| Quarter 2 | 0.75%, 0.0075 | 4/1/2025-6/30/2025 | 7/31/2025 |
| Quarter 3 | 0.75%, 0.0075 | 7/1/2025-9/30/2025 | 10/31/2025 |
| Quarter 4 | 0.75%, 0.0075 | 10/1/2025-12/31/2025 | 1/31/2026 |
Frequently Asked Questions (FAQ):
Q: Why did the PFL tax rate increase?
A: The PFL tax rate increase from 0.26% to 0.75% of the wages paid to each covered employee is required pursuant to section 12(a) of Fiscal Year 2024 Revised Local Budget Emergency Act of 2024, effective July 8, 2024 (D.C. Act 25-499; D.C. Code § 32-541.03).
Q: Are benefits affected by the PFL tax rate increase?
A: No. The District will continue to provide benefits for up to twelve (12) weeks for family leave, twelve (12) weeks for medical leave, twelve (12) weeks for parental leave, and two (2) weeks for prenatal leave.
Q: What if my business closed and I need to report this change to the Office of Unemployment Compensation (OUC) and the Office of Paid Family Leave (OPFL)?
A: If a business or trade is no longer doing business in the District of Columbia, it needs to close its DC Employer Self-Service account. Businesses may request account closure in a letter to DOES. The letter should address each of the numbered questions below and it should be prepared by either the Employer or Agent requesting account deactivation. Additionally, the letter should be signed by the business owner.
The letter should be addressed to The Office of Unemployment Compensation and The Office of Paid Family Leave and should be submitted via email to [email protected]. The OPFL will assist in processing the deactivation request.
1. Business Name
2. Business Address (Or Business Header)
3. Unemployment Insurance/Paid Family Leave Account Number
4. FEIN
5. Indicate the reason for account closure:
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- Out of Business without transfer of ownership.
- Partial transfer of ownership (indicate % transferred)
- Total transfer of ownership (100% transferred)
- Change in legal entity type or FEIN.
- The last Payroll Date (dd/mm/yyyy) when you stopped paying D.C. employees
- Owner Signature
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Q: When can a Self-Employed Individual (SEI) change their election status by opting into or out of the Paid Family Leave Program?
A: The SEI open enrollment period runs from November through December each year. SEIs may opt-in or opt-out of the PFL program during the open enrollment period.
A SEI who chooses to join the program will be required to make PFL tax contributions in exchange for paid family leave benefits. Alternatively, any SEI who wants to leave the program and not pay further contributions, may do so by opting out during the open enrollment period.
SEIs should be aware of the opt-out limitations. SEIs who did not opt-in when they were first eligible for the PFL program, cannot opt-out for three (3) years after joining. SEIs can email OPFL ([email protected]) to ask if the account is subject to this three-year limitation.
Finally, SEIs may request removal from the PFL program at any time (even outside of the open enrollment period), if any of the circumstances below apply:
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- The SEI’s primary place of business is moved outside of DC and there is no intention to earn self-employment income in DC within the next fifty-two (52) weeks;
- The individual accepted employment from an employer (covered or non-covered) and has no intention to earn self-employment income within the next fifty-two (52) weeks;
- The individual has no intention to earn income from work performed more than 50% of the time in DC; or
- The individual has no intention of earning any income within the next fifty-two (52) weeks. 7 DCMR 3402.3(b)
How Should Businesses Prepare:
Employers that file on a quarterly basis
ESSP Instructions:
Employers that utilize The Employer Self-Service Portal (ESSP) to file wage reports with the Office of Unemployment Compensation and the Office of Paid Family Leave do not need to take any action to prepare for the PFL tax rate change. The ESSP platform will automatically accommodate the tax rate change, so employers should continue to report wages through ESSP as usual. PFL tax rate history and other helpful information can be found below.
PFL-30 Instructions:
While all employers should use The Employer Self-Service Portal (ESSP), employers that have less than 6 employees are permitted to report wages and pay the PFL tax using a paper worksheet.
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- Employers should start by submitting a wage report to the Office of Unemployment Compensation (OUC) and paying the Unemployment Insurance Tax. The relevant worksheet is called Form UC30 (Quarterly Contribution Wage Report).
- After completing the Form UC30, download the “PFL-30”, located at https://dcpaidfamilyleave.dc.gov/employers/employer-forms/. The PFL-30 is a worksheet used to calculate the amount of PFL taxes owed. Instructions on how to submit the PFL tax payment can be found on the PFL-30.
- Employers do not need to mail the PFL-30 along with a check payment, as wage information from UI is shared with PFL.
Third Party Administrators (TPAs)
Instructions:
TPAs that utilize The Employer Self-Service Portal (ESSP) to file wage reports with the Office of Unemployment Compensation and the Office of Paid Family Leave do not need to take any action to prepare for the PFL tax rate change. The ESSP platform will automatically accommodate the tax rate change, so TPAs should continue to report wages through ESSP as usual.
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- TPAs may submit wage reports utilizing the ESSP platform’s manual wage entry feature, or
- TPAs may upload a wage file on behalf of businesses whom they represent.
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Both wage filing methods will result in an automatic tax liability calculation at the new 0.75% (0.0075) rate.
Self-Employed Individuals (SEIs)
ESSP Instructions:
Self-Employed Individuals (SEIs) who have opted-in to the PFL program may continue to report gross self-employment income through The Employer Self-Service Portal (ESSP). The ESSP platform will automatically calculate the amount of PFL tax owed at the new 0.75% (0.0075) rate.
PFL-30S Instructions:
SEIs who report gross self-employment income and pay the PFL tax payment using the PFL-30S may continue to do so. SEI’s can visit https://dcpaidfamilyleave.dc.gov/employer-forms/ to obtain a copy of the PFL-30S.
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- SEIs should mail the completed PFL-30S to DOES using the address listed on the form. Separately, mail the tax payment (check or money order) to the payment lockbox address listed on the PFL-30S form.
SEIs should use the table above in conjunction with the PFL-30S to calculate the appropriate PFL tax payment amount.
Employers (Annual Wage Filing)
Employers that report wages to the Office of Unemployment Compensation (OUC) on an annual basis are also permitted to pay the PFL tax on an annual basis. The next wage report and tax payment is due to OUC and PFL by April 15, 2025.
ESSP Instructions:
Annual Filers that utilize The Employer Self-Service Portal (ESSP) do not need to prepare for the tax rate change. The amount of PFL tax due is calculated automatically by ESSP after a wage report is submitted, so employers should continue to report wages and pay the PFL tax through ESSP as usual. Employers that utilize the PFL-30H must submit a wage report to the Office of Unemployment Compensation (OUC), prior to April 15, 2025.
PFL-30H Instructions:
Annual Filers that do not utilize ESSP may fulfill their wage filing and tax payment responsibilities by following these steps:
File a 2024 wage report with The Office of Unemployment Compensation (OUC) and pay the Unemployment Insurance tax. The report should be filed using the Form UC30-H (Employers Annual Contribution Wage Report).
The Office of Paid Family Leave will utilize the wage report submitted to OUC (in step 1) for PFL purposes. Employers are not required to submit a separate wage report to PFL. To pay the PFL Tax, download the PFL-30H tax calculation worksheet located at: https://dcpaidfamilyleave.dc.gov/employer-forms/. The worksheet includes instructions on how to calculate the amount of PFL Tax owed and how to pay by check or money order.
Important Notes:
- The table below lists the PFL tax rate for each quarter of 2024. Annual Filers should use this table in conjunction with the PFL-30H, to calculate the PFL tax payment amount for 2024.
- Annual Filers should only mail their check or money order payment, not the PFL-30H, as wage information from UI is shared with PFL.
PFL Tax Rate Table for Annual Filers (Calendar Year 2024)
| Quarter | Tax Rate | Quarter Dates |
|---|---|---|
| Q1 | 0.26%, 0.0026 | 1/1/2024-3/31/2024 |
| Q2 | 0.26%, 0.0026 | 4/1/2024-6/30/2024 |
| Q3 | 0.75%, 0.0075 | 7/1/2024-9/30/2024 |
| Q4 | 0.75%, 0.0075 | 10/1/2024-12/31/2024 |
Note: The due date for 2024 UI and PFL wage reports and tax payment is April 15th, 2025.
PFL Tax Rate Table for Annual Filers (Calendar Year 2025)
| Quarter | Tax Rate | Quarter Dates |
|---|---|---|
| Q1 | 0.75%, 0.0075 | 1/1/2025-3/31/2025 |
| Q2 | 0.75%, 0.0075 | 4/1/2025-6/30/2025 |
| Q3 | 0.75%, 0.0075 | 7/1/2025-9/30/2025 |
| Q4 | 0.75%, 0.0075 | 10/1/2025-12/31/2026 |
Note: The due date for 2025 UI and PFL wage reports and tax payment is April 15th, 2026.
Historical PFL Tax Rate Information
| Year | Quarter | Tax Rate % |
|---|---|---|
| 2019 | Quarter 2 | 0.62% |
| 2019 | Quarter 3 | 0.62% |
| 2019 | Quarter 4 | 0.62% |
| Year | Quarter | Tax Rate % |
|---|---|---|
| 2020 | Quarter 1 | 0.62% |
| 2020 | Quarter 2 | 0.62% |
| 2020 | Quarter 3 | 0.62% |
| 2020 | Quarter 4 | 0.62% |
| Year | Quarter | Tax Rate % |
|---|---|---|
| 2021 | Quarter 1 | 0.62% |
| 2021 | Quarter 2 | 0.62% |
| 2021 | Quarter 3 | 0.62% |
| 2021 | Quarter 4 | 0.62% |
| Year | Quarter | Tax Rate % |
|---|---|---|
| 2022 | Quarter 1 | 0.62% |
| 2022 | Quarter 2 | 0.62% |
| 2022 | Quarter 3 | 0.26% |
| 2022 | Quarter 4 | 0.26% |
| Year | Quarter | Tax Rate % |
|---|---|---|
| 2023 | Quarter 1 | 0.26% |
| 2023 | Quarter 2 | 0.26% |
| 2023 | Quarter 3 | 0.26% |
| 2023 | Quarter 4 | 0.26% |
| Year | Quarter | Tax Rate % |
|---|---|---|
| 2024 | Quarter 1 | 0.26% |
| 2024 | Quarter 2 | 0.26% |
| 2024 | Quarter 3 | 0.75% |
| 2024 | Quarter 4 | 0.75% |
| Year | Quarter | Tax Rate % |
|---|---|---|
| 2025 | Quarter 1 | 0.75% |
| 2025 | Quarter 2 | 0.75% |
| 2025 | Quarter 3 | 0.75% |
| 2025 | Quarter 4 | 0.75% |
