Yes, the paycheck withholdings are considered premiums paid for the PFML benefits.
The taxability of the income when used for your own health issues versus a father bonding with a child, is different. Washington is following the lead of other states with similar programs on the taxability of these benefits, as the IRS has not officially given them guidance, but they believe that payments for Family leave is taxable while payments for medical leave are not taxable.
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