Washington State PFML Update: What Employers Need to Know About Changes and Reporting
Washington State is clarifying how self-employed individuals should be treated under Paid Family & Medical Leave (PFML) and WA Cares reporting requirements. While these rules are not entirely new, the state is placing increased emphasis on proper reporting and compliance.
For many small businesses, LLCs, and owner-operated companies, this update raises important questions about who should — and should not — be included on quarterly wage reports. Reviewing your reporting practices now can help avoid future issues related to compliance, premium reporting, and benefit eligibility.
Our Quick Summary
Washington State is clarifying that self-employed individuals generally should not be included on employer PFML or WA Cares quarterly wage reports.
If self-employed wages were previously reported through your business account:
Those wages may not count toward benefit eligibility
Amendments to quarterly wage reports may be necessary
Self-employed individuals who want coverage may need to elect coverage separately
Certain elective coverage review requests may need to be submitted before important state deadlines
Business owners — especially LLC members and owner-operated businesses — should review prior reporting practices now to determine whether corrective action is needed.
So, Here’s What’s Changing
Washington State is clarifying that self-employed individuals are treated differently from employees under both PFML and WA Cares. This distinction is especially important for LLCs, partnerships, and closely held businesses where owners may have previously been included on quarterly wage reports.
Under Washington law, self-employed individuals are not considered employees for purposes of Paid Leave and WA Cares reporting requirements. This means:
Self-employed individuals generally should not be included on employer quarterly wage reports
Self-employment wages and hours reported through an employer account will not count toward PFML or WA Cares benefit eligibility
Self-employed individuals seeking coverage must elect coverage separately and follow separate reporting and payment requirements
This clarification applies to individuals who are:
Sole proprietors
Members of partnerships
Joint venturers
Members of an LLC
Independent contractors
Otherwise in business for themselves
Importantly:
Officers of C Corporations are generally not considered self-employed and must still be included on all employer wage reports
For owners of LLCs taxed as S Corporations for federal tax purposes, Washington still treats the entity as an LLC for PFML purposes because the state looks at the registered business entity type — not the federal tax election
The key takeaway is that entity structure matters, and employers should ensure they are properly distinguishing between employees and self-employed individuals when filing quarterly reports.
What Does It Mean?
For many employers, this update may simply confirm that their reporting practices are already correct. For others, particularly owner-operated businesses and LLCs, it may require a closer review of past filings.
Importantly, this clarification does not mean self-employed individuals are excluded from PFML or WA Cares altogether. Washington allows self-employed individuals to voluntarily elect coverage under one or both programs.
If You’re Self-Employed and Want Coverage
Self-employed individuals can elect coverage for:
Paid Family & Medical Leave
WA Cares
Or both programs
Once enrolled, self-employed earnings may count toward benefit eligibility. However, the individual must:
Create an elective coverage account
File separate quarterly reports
Submit payments separately from the employer account
Coverage begins on the first day of the quarter after the election is approved.
Washington State may also allow certain individuals to request an earlier effective date if self-employment wages were mistakenly reported through an employer account.
To request a review for an earlier PFML elective coverage start date:
Requests must be submitted by August 31, 2026
Reports must have originally been filed on time
Requests should be emailed to paidleave@esd.wa.gov with the subject line: “Elective Coverage Request”
The request should include:
UBI number
Phone number
Name
Title (owner/member/etc.)
Business entity type
Elective coverage customer ID (if known)
Requested effective start date
Businesses and self-employed individuals should also be mindful that certain WA Cares-related deadlines may occur earlier, including deadlines that may apply on or before June 30 depending on filing status and eligibility requirements.
In short, self-employed individuals can still access these programs — but participation requires separate enrollment and reporting.
What You Need to Do (If Anything)
Not every business will need to take action. However, businesses that included owners or self-employed individuals on quarterly reports should review prior filings and determine whether updates may be necessary.
Step 01: Review Your Quarterly Wage Reports
Identify whether any self-employed individuals were included on employer quarterly wage reports.
If no self-employed individuals were reported, no additional action may be needed.
Step 02: Determine Whether Elective Coverage Makes Sense
If a self-employed individual wants PFML or WA Cares coverage, they should:
Download the Washington State Elective Coverage Toolkit
Create an elective coverage account
Elect coverage for the applicable program(s)
If elective coverage is not desired, the business can move directly to reviewing whether amendments are necessary.
Step 03: Amend Quarterly Reports (If Necessary)
If self-employed individuals were mistakenly included:
Employers may need to amend the affected quarterly wage reports
Amended filings should remove self-employed individuals from the reports
Important
If someone requests an earlier review of the elective coverage effective date, wait until that review is complete before submitting amendments.
After any approved start-date adjustment:
Log into the employer account
Resubmit the full wage report for affected quarters
Remove self-employed individuals from the filing
Businesses should review prior quarterly reports where self-employed individuals may have been included incorrectly and determine whether amendments are appropriate.
Washington’s Employer Toolkit – Reporting and Premiums provides detailed instructions for amendments.
Taking time now to review reporting practices can help businesses avoid future confusion around eligibility, reporting requirements, and premium contributions.
The Key Takeaways
This update is primarily about aligning PFML and WA Cares reporting with Washington’s legal distinction between employees and self-employed individuals. While the rules may seem technical, they can significantly affect reporting obligations and benefit eligibility.
Here are the biggest points employers should remember:
Self-employed individuals are generally not employees for PFML or WA Cares
They typically should not be included on employer quarterly wage reports.Incorrect reporting may affect benefit eligibility
Self-employment wages reported through an employer account generally will not count toward eligibility.Elective coverage is available
Self-employed individuals can still participate in PFML and WA Cares if they separately elect coverage.Employers should review prior filings
Businesses that included self-employed individuals on prior reports may need to consider amendments.
Timing matters
Businesses reviewing their self-employed reporting should act promptly, especially where elective coverage reviews, WA Cares deadlines, or amended filings may apply.
The most important takeaway is that proactive review now can help prevent larger administrative or compliance issues later on down the road.
We’re Here to Help
PFML and WA Cares reporting rules can be confusing — particularly for small businesses, LLCs, and owner-operated entities navigating evolving compliance requirements.
If you are unsure whether certain individuals should be reported as employees, whether amendments may be necessary, or whether elective coverage makes sense, it is worth reviewing your situation sooner rather than later.
Questions can be directed to Washington Paid Leave at:
Phone: 833-717-2273
Email:paidleave@esd.wa.gov
When emailing, include either:
“UBI” + your 9-digit UBI number -or-
“BUSINESS” + your business name
in the subject line to route your request correctly. Their office hours are Monday through Friday, 8:30 a.m. to 4:30 p.m.
