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NYS Paid Family Leave – Employee Contribution

Some payroll providers automatically began deducting Paid Family Leave Plan contributions from employees’ weekly wages starting July 1, 2017.

Starting January 1, 2018, this employee-funded program will provide your NY employees with 8 weeks of partially paid leave when certain life events occur.  Paid family leave benefits will be phased in over a four-year period beginning January 1, 2018.  When the law is fully implemented in 2021, employees may be eligible for up to 12 weeks of paid family leave.

The paid family leave benefits will be funded through employee payroll deductions.  Employers are not responsible for contributing to or funding paid family leave benefits. The NYSDFS has set the 2018 employee contribution rate: the maximum employee contribution will be .126% of an employee’s weekly wage, capped at a weekly wage of $1,305.92 for 2018, resulting in a maximum weekly contribution of $1.65.

The Paid Family Leave law allows employers to begin collecting the weekly employee contributions starting on July 1, 2017. However, employers are not required by the law to start deducting on July 1, 2017 – it is at their discretion. Some employers may decide to fund the required contributions entirely and not deduct contributions from employee’s paychecks.  This is not required, but is allowed if the employer elects to bear the cost of this program.

To read Compliance Bulletin click here.