The New York Paid Family Leave law is set to take effect on January 1, 2018. On July 1, 2017, employers may begin deducting premiums from their employees’ payroll. We have received many questions regarding this new law and the collection procedures, so we created these New York Paid Family Leave FAQs to help answer the questions employers and employees may have, including how GTM will handle this deduction for our clients.
Q: What is NYS Paid Family Leave (PFL)?
A: Passed in 2016, NYS PFL extends beyond the Federal FMLA, providing employees paid leave for various family or medical reasons. PFL can be taken by your male or female employee to:
- Bond with a newborn, adopted or foster-care child during the first 12 months after birth or placement
- Care for a seriously ill family member
- Address important needs related to a family member’s military service
For additional detailed information, please visit NYS’s PFL page here.
Q: Who pays for NYS PFL?
A: The program is paid for by employees through an additional payroll deduction. New York State dictates the rate of this deduction, and can change it each year. For 2019, employers may deduct .153% of an employee’s weekly wage until the annual cap of $107.97 is reached to pay for the premiums. It should be noted that this contribution percentage applies to all employees, regardless of age, job duties, gender, or any other factor.
Q: Who is the premium paid to?
A: PFL will be added to clients’ existing disability policy and will be invoiced along with their disability insurance bill. The funds withdrawn from employees’ paychecks for PFL will remain in the employers’ bank accounts, allowing for accrual of the funds to pay the PFL when the invoice comes due.
Q: How will the new deduction show on my employees’ stubs?
A: Since this is not a tax, it will show under the Deductions section of their check stubs, and will be labeled “NYSPFL”.
Q: Do we withhold deductions from all full time and part time employees?
A: GTM will set up the deduction on ALL employees of our clients. However, employers must provide employees whose regular work schedule will render them ineligible for paid family leave (e.g., a FT employee who is scheduled to work fewer than 26 consecutive weeks or PT employee working less than 175 days in a year) the option to file a waiver to exempt them from making contributions for PFL coverage. Employers may make deductions from the pay of employees who opt not to file such a waiver.
Q: Will GTM be collecting the amounts deducted from employees?
A: No. The amount withheld from employees’ checks will remain in the employers’ bank accounts. We will contact clients regarding how it will be paid to the insurance carrier.
Q: Are all NY employers subject to NYS Paid Family Leave?
A: Any employer that has 1 or more employees is required to have the coverage unless they are a Public Employer or employee-only exempt employees. Public employers are defined the same as it is in the Workers’ Compensation code.
Q: Am I required to deduct the NYS PFL from my employees?
A: Technically no, but failure to deduct will result in the amount due being the burden of the employer. You cannot retroactively ask your employee to pay the PFL portion of the invoice. Therefore, you will pay the cost on your employee’s behalf.
For more information, contact us at (518) 373-4111.