DC Paid Family Leave: 0.75% of wages in 2026
In effectChecked November 9, 2026Run by DC Department of Employment Services (DOES), Office of Paid Family Leave
Short answer
DC Paid Family Leave is paid entirely by employers: a tax of 0.75% of each covered employee’s wages, sent to the DC Department of Employment Services (DOES) every quarter with the unemployment insurance wage report. Employers may not take any of it out of workers’ pay, and there is no small-employer exemption. Since October 1, 2026, new claims get up to 10 weeks of medical leave and 6 weeks of family leave, with a maximum weekly benefit of $1,100.
Next date: January 1, 2027: DC Paid Family Leave medical leave benefits start being treated as third-party sick pay under IRS Revenue Ruling 2025-4, which makes them subject to Social Security and Medicare (FICA) taxes, according to DOES.
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What changed recently
· Took effect
DC Paid Family Leave cuts benefit weeks and the weekly maximum
For claims filed from October 1, 2026, DC Paid Family Leave pays up to 10 weeks of medical leave (was 12) and 6 weeks of family leave (was 12), with a maximum weekly benefit of $1,100 (was $1,190). Parental and prenatal leave are unchanged, and so is the employer-paid 0.75% premium. The change is in the Fiscal Year 2027 Budget Support Act of 2026 (D.C. Law 26-189, effective October 2, 2026). The shorter medical and family leave limits apply to claims filed before October 1, 2030.
- Premium, share of wages
- 0.75%
- Most you may deduct from employees
- 0%
- Employer pays at least
- 0.75%
- 2027 premium
- 0.75%
2027 rate: 0.75%, set in law with no annual reset.
DC Paid Family Leave premium calculator
In 2026, DC Paid Family Leave premiums are 0.75% of each employee’s wages. Employers pay all of it and may not deduct any from pay.
- Total premium a year
- $375.00
- Most you may deduct from employees
- $0.00
- Employer pays at least
- $375.00
DC Paid Family Leave deadlines
· Paid leave
Paid Family Leave tax due for October through December 2026 wages, filed with the quarterly unemployment insurance wage report
The DC Department of Employment Services lists January 31, 2027, which falls on a Sunday.
Dates already passed (4)
- : For claims filed from this date, medical leave drops from 12 to 10 weeks, family leave from 12 to 6 weeks, and the maximum weekly benefit from $1,190 to $1,100. Parental leave (12 weeks) and prenatal leave (2 weeks) are unchanged, and so is the 0.75% employer contribution.
- : The employer contribution rose from 0.26% to 0.75% of wages; the first payment at the new rate was due October 31, 2024.
- : Date by which the law required DOES to begin paying paid leave benefits.
- : Date by which the law required DOES to begin collecting the employer contribution.
What employers have to do
- Set up or update your account on the DC Department of Employment Services (DOES) Employer Self-Service Portal (ESSP), which handles both unemployment insurance and Paid Family Leave.
- Report wages and pay 0.75% of each covered employee’s wages every quarter through ESSP by the last day of the month after the quarter ends (January 31, April 30, July 31 and October 31). Do not deduct any of it from pay.
- Post the DOES employee notice where all workers can see it; DOES updated it for the October 1, 2026 changes, updates it each November, and requires the new version to be posted by the following February.
- Give each covered employee the notice at hire, once a year, and when you learn they need leave.
- Keep records of workers’ wages and of your communications about Paid Family Leave.
Handling DC Paid Family Leave in payroll
The free route: register directly with the District
You can register and report on your own through DC Department of Employment Services (DOES), Office of Paid Family Leave. You’ll still need your payroll to figure the employer premium on wages and track them for the quarterly report.
Payroll systems with a help document covering DC Paid Family Leave
| System | What the documentation says | Link |
|---|---|---|
| Gusto | D.C. tax article says Gusto collects the employer Paid Family Leave contribution and reports and pays it to D.C. Read their help doc, Nov 8, 2026 | See plans for Gusto |
| Patriot Software | D.C. tax list shows Patriot calculating the employer Paid Family Leave premium and filing it quarterly for Full Service customers. Read their help doc, Nov 7, 2026 | See plans for Patriot Software |
| Square Payroll | D.C. tax article says Square Payroll calculates and collects the Paid Family Leave premiums and remits them each quarter for the employer. Read their help doc, Nov 7, 2026 | See plans for Square Payroll |
Listed alphabetically. We may earn a commission from these links; it never decides who’s listed.
How DC Paid Family Leave works
The employer pays the whole contribution of 0.75% of each covered employee’s wages (D.C. Code section 32-541.03), and DOES describes the program as fully employer-funded with no payroll deductions from workers. Wages follow the DC unemployment insurance definition, which includes commissions, bonuses and tips, and the law sets no annual wage cap. Most employers report wages and pay the tax each quarter through the DOES Employer Self-Service Portal (ESSP) along with their unemployment insurance report; employers with fewer than 6 employees may use the paper PFL-30 worksheet instead. Offering your own paid leave policy does not reduce the contribution.
The full 0.75% falls on the employer. On a $50,000 salary that is $375 a year, about $93.75 a quarter, and it keeps applying above any wage level because there is no cap.
For claims filed on or after October 1, 2026: up to 12 weeks of parental leave, 10 weeks of medical leave, 6 weeks of family leave and 2 weeks of prenatal leave in a 52-week period, with the maximum weekly benefit at $1,100 (it was $1,190 before). From October 1, 2027, the maximum rises each October 1 with the Washington-Baltimore consumer price index, once the District’s Chief Financial Officer certifies that the fund has enough money. Total leave in 52 weeks is capped at the parental leave maximum, with prenatal leave allowed on top of it. The benefit is 90% of the worker’s average weekly wage up to 150% of DC’s minimum wage times 40, plus 50% of earnings above that. The shorter medical and family leave limits run until claims filed on October 1, 2030, when they return to 12 weeks each under the current law.
Questions employers ask
Who has to follow DC Paid Family Leave?
Employers of any size that must pay DC unemployment insurance tax, for each employee who spends more than half of their work time in DC, or who is based in DC, works there regularly and spends no more than half of their time in any other jurisdiction. The federal government, the DC government and employers DC is not allowed to tax are not covered. Self-employed people may opt in.
What happens if an employer doesn’t comply?
Late contributions are handled like late DC unemployment insurance contributions (D.C. Code section 32-541.03(f)): interest of 1.5% a month, and a penalty of 10% of the amount due (at least $100) if the report or payment is not in by the first day of the second month after the quarter ends (D.C. Code section 51-104). Failing to give the employee notice carries a civil penalty of up to $100 for each employee not notified, and failing to post it up to $100 for each day (D.C. Code section 32-541.06(i)). Retaliating against a worker for using or asking about the program is unlawful (section 32-541.10).
Can employers use a private plan instead?
Not allowed. An employer’s own paid leave plan does not exempt it from the 0.75% contribution, though an employer may offer benefits on top of DC Paid Family Leave (D.C. Code section 32-541.07(d)).
Everything employers in District of Columbia must do ·Paid leave in every state
Sources
- D.C. Code sections 32-541.01 to 32-541.17
- PFL Tax Rate Change FAQ and Preparation Guidance (2026 rate table and due dates, rate history, annual filers, paper worksheets), DC Department of Employment Services, Office of Paid Family Leave (read Nov 7, 2026)
- 2026 Program Changes: What You Need to Know (Fiscal Year 2027 Budget Support Act changes effective October 1, 2026; IRS ruling from January 1, 2027), DC Department of Employment Services, Office of Paid Family Leave (read Nov 7, 2026)
- Information for employers (portal, quarterly tax, employee notice, records), DC Department of Employment Services, Office of Paid Family Leave (read Nov 7, 2026)
- D.C. Code section 32-541.01, Definitions (covered employee, covered employer, wages), Council of the District of Columbia (read Nov 7, 2026)
- D.C. Code section 32-541.03, Contributions to the Universal Paid Leave Fund (0.75% rate; late-payment rules), Council of the District of Columbia (read Nov 7, 2026)
- D.C. Code section 32-541.04, Duration and amount of benefits (leave weeks by filing date, $1,100 maximum from October 1, 2026), Council of the District of Columbia (read Nov 9, 2026)
- D.C. Code section 32-541.06(i), Employee notice and notice penalties, Council of the District of Columbia (read Nov 7, 2026)
- D.C. Code section 32-541.07, Coordination of benefits (employer plans do not replace contributions), Council of the District of Columbia (read Nov 7, 2026)
- D.C. Code section 32-541.10, Prohibited acts, Council of the District of Columbia (read Nov 7, 2026)
- D.C. Code section 51-101(3), definition of wages, Council of the District of Columbia (read Nov 7, 2026)
- D.C. Code section 51-104, Payment of employer contributions (quarterly due date, April 15 annual filing for household employers, interest and penalties), Council of the District of Columbia (read Nov 7, 2026)