New Payroll Tax Is Coming
DC is getting a new payroll tax...Are you ready?
Do you have employees in Washington, DC? Then these new changes will affect your business and leave policy.
The DC Universal Paid Leave Amendment Act passed in February 2017. This bill will provide employees with up to 8 weeks of paid leave for the birth or adoption of a child, 6 weeks of paid leave to care for a sickness in the family, and 2 weeks of paid leave for personal health reasons. This can also be a benefit to employers to ensure that they have enough funds to cover their employee's paid leave.
Starting July 1, 2019, all non-government employers will be required to pay a .62% payroll tax. This means that they will have to pay .62% of the total salary for all their employees which will go to the Universal Paid Leave Fund. The DC government will provide more details towards the end of 2017 regarding the expected timeline for payment of claims under the act. There may be some changes that will take place between now and implementation.
At CFO Services Group, we will help our clients navigate and understand this new bill. Your company will always stay compliant. We provide full payroll services so you won't have to worry about things like tax return filing and making tax payments. We will track benefits for you and send you reports and reminders. We will learn more about this new payroll tax for both employers and employees by the end of this year, but these new benefits are here to stay. Schedule a free consultation with us and let's chat.