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NY Paid Family Leave

7
Jul 2017
Posted in Blog

As you may have heard in the news, the New York State (NYS) Paid Family Leave (PFL) program was signed into law last year and will become available to eligible employees on January 1, 2018. This law means that New York will guarantee job-protected, paid family leave benefits to bond with a new child, care for a loved one with a serious health condition or to help relieve family pressures when someone is called to active military service. Covered employers will be required to provide eligible full- and part-time employees with job protected leave for qualified reasons. The PFL is designed to be completely funded through employee payroll deductions.

NY PFL Details 

  • Covered employers are required to carry PFL insurance, or comply with the requirements to self-insure by January 1, 2018. Your New York State Disability (NYS DBL) insurance carrier should contact you about a PFL rider.
  • The New York State Department of Financial Services (DEFS) announced, “the amount of the per employee payroll deductions, the maximum employee contribution for coverage beginning January 1, 2018, shall be 0.126% of an employee’s weekly wage up to and not to exceed the statewide average weekly rate,” which is currently set at $1,305.92. For employees who earn more than $1,305.92 per week, the PFL deduction will be capped at $1.65 per week (0.126 percent of $1,305.92). The deduction percentages and caps may change annually – the deduction percentage may change on January 1; the cap may change on July 1.
  • NYS PFL insurance coverage is designed to be funded through employee payroll deductions; however, employers may choose to cover the premium payments, and not deduct contributions from employees.
  • The number of weeks of leave available to eligible employees under the NYS PFL and the benefits paid will be phased in over several years. The phase-in schedule is:
 


Year

 

Weeks Available

The Lesser of % of Employee Average Weekly Wage (below) and the NYS AWW (announced each year on July 1)

2018

8 50%

2019

10

55%

2020

10

60%

2021 12

67%

Click here for more details on the law.

How is Advantage handling this?

Beginning with payrolls with check dates of July 1, 2017 or later, we are automatically calculating the PFL employee payroll deductions.

  • By starting employee deductions in July 2017, we hope to minimize the insurance premium payment amounts that you’ll need to subsidize.
  • The NYS DEFS regulations restrict employers from collecting employee PFL contributions retroactively (from past payrolls).

NYS PFL Initial Witholding Setup on Your Payroll Account

How you currently handle NYS DBL will determine how New York State PFL will be deducted.

Withhold Both NY Disability and NY PFL

  • If you are currently withholding disability from employees you will default to this option on your first check date after July 1, 2017.
  • Advantage will withhold up to $0.60 weekly for disability and up to $1.65 weekly for PFL, for a total of up to $2.25 weekly, depending on how much the employee earns.  Employees who get paid less frequently than weekly will have their deductions pro-rated accordingly.

Withhold NY PFL Only 

  • If you aren’t currently withholding disability from employees, your account will default to this option on your first check date after July 1, 2017.
  • Advantage withholds only up to $1.65 weekly for PFL. Employees who get paid less frequently than weekly will have their deductions pro-rated accordingly.

Don’t Withhold NY Disability or NY PFL

  • Advantage withholds $0.00.
  • You will need to opt to discontinue withholding.

NOTE: If you deduct NY PFL, you should let employees know that their net pay amounts might be slightly lower.

If you do not want NY PFL deducted from employees, or if you do not want to start withholding until January 2018, please opt out via this form.

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