New York Paid Family Leave
This article was last updated on June 26th 2017.
New York has introduced and passed a Paid Family Leave act. Employees can use this benefit starting in January of 2018 and employers must obtain and have a policy in effect for January 1st 2018.
Funding for the plan is either via employee deductions or can be funded/paid for by the employer. The act allows for employee deductions/contributions to their payroll starting on July 1st 2017 but is not required since the policy and its benefits are not in place until January 1st 2018.
The rates in this article may not be current. Please speak to your accountant about the rates and approach that works best for your business.
You can learn more about the Paid Family Leave act on the NY Paid Family Leave website
The premium rate, like the Family Leave Benefits, is set as a percentage of an employee's wages. The current contribution rate for 2018 is 0.126% of an employees weekly wage and not to exceed the statewide average weekly wage. The Average Weekly Wage was computed at $1,305.92 for 2016. Please review this website for the contribution rate and average weekly wage to be used in your deductions.
How to Set Up an Employee Deduction
- From the Payroll Command Center, click Payroll Categories
- Click on the Deductions tab
- Click New to create a new deduction.
- Provide a Deduction name, ie, Paid Family Leave.
- Under Type of Deduction, click on the button for Percent. Enter the contribution rate set by the NY State. As of June 1st 2017 this rate was set at .126%. (Leave Gross Pay as the selection from the Percent of drop down.)
- Under Deduction Limit, click on the button for Dollars.
The max amount is the contribution rate multiplied by the New York State Average Weekly Wage. As of June 1st 2017 this was set at $1,309.92 based on 2016. Enter an amount based on your pay periods:
- Weekly Pay Period - $1.65
- Every Two Weeks - $3.29
- Twice a Month- $3.57
- Monthly - $7.13
- Select this deduction for all employees by clicking on the Employee button and selecting all.