518-373-4111
Last week the NYS Department of Financial Services announced the New York Paid Family Leave contribution amount for the New York Paid Family Leave Law, which takes effect on January 1, 2018. The law allows all employees in the state to receive up to 12 weeks of paid leave under various qualifying circumstances.
The law requires all employers to collect weekly contributions from their employees, which will be 0.126% of either an employee’s average weekly wage or the statewide average weekly wage (SAWW), whichever is less. The current SAWW is $1,305.92, so if an employee earns more than that, their maximum contribution will be $1.65 per week. If they earn less than the SAWW, the maximum contribution will be .0126% of their pay. It should be noted that this contribution percentage applies to all employees, regardless of age, job duties, gender, or any other factor.
Although employers are not required to begin collecting premiums until January 1, 2018, employers are permitted to begin collection as early as July 1, 2017, so that the funds are in place for any employee wishing to use their paid leave immediately after the law takes effect. Employers cannot retroactively collect premiums, so if an employee wishes to use their benefit on January 1 and the employer has not collected any premiums in advance, the employer will be responsible for paying out that benefit, rather than being able to draw from previously collected funds.
There are likely to be amendments and adjustments to this new law prior to the end of the year. GTM will continue to monitor and provide updates as necessary. You can read more about the law here, and contact us at (518) 373-4111 for more information.
