Paid Family and Medical Leave are funded through premiums paid by both employees and employers. The premium rate is 0.8 percent of each employee's gross wages, not including tips, up to the 2023 Social Security cap ($160,200). Of this, employers with 50+ employees will pay up to 27.24% and employees will pay 72.76%.
Since the State is not reporting paid medical leave on Form 1099G and is only reporting family leave benefits, you should prepare your tax return accordingly.
Also, check with your payroll department to see how they report medical leave on your W-2. This will also provide confirmation as to how it was reported and whether or not it is taxable.
SEE EXTRACT FROM STATE BELOW:
Will everyone who received Paid Leave benefits in 2022 get a 1099-G?
No. We only issued 1099-G forms to customers who received family leave benefits in 2022. Family leave includes leave to bond with a new child born or placed in your home and leave to care for a family member with a serious health condition.
Below is an Extract from Washington State.
"While the IRS declined to give us guidance on the taxability of Paid Leave benefits in Washington, based on what we’ve learned from other states with similar programs, we think it is likely that family leave benefits could be taxable and medical leave benefits would not. That is why we chose to provide 1099s for family leave only.".
Paid Sick Leave
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