New York Paid Family Leave
New York 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 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 2023 is 0.455% of an employee’s gross wages each pay period. The maximum annual contribution is $399.43. 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, NY Paid Family Leave.
- Under Type of Deduction, click on the button for Percent. Enter the contribution rate set by the NY State. As of January 1st 2023 this rate is set at .455%. (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 January 1st 2023 this is set at $1,688.19. Enter an amount based on your pay periods:
- Weekly Pay Period - $7.68
- Every Two Weeks - $15.36
- Twice a Month- $16.64
- Monthly - $33.29
- Select this deduction for all employees by clicking on the Employee button and selecting all.