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New York Paid Family Leave: Updated Guidance on Deductions and Voluntary Coverage

Posted on March 21 2018 09:20 PM

Updated Employee Calculator Available

New York has updated two provisions of its paid family leave guidance regarding deductions from employees' wages and voluntary coverage. Highlights of the changes are presented below.

Wage Deductions
The 2018 payroll contribution is 0.126% of an employee’s weekly wage and is capped at an annual maximum of $85.56. If an employee earns less than the New York State average weekly wage ($1,305.92 per week), he or she will have an annual contribution amount less than the cap of $85.56, consistent with his or her actual weekly wages.

Click here for a calculator that provides an estimate of weekly employee deductions.

Voluntary Coverage
A self-employed individual who has employees must obtain paid family leave coverage for such employees. The self-employed individual must opt in for both disability and paid family leave benefits and cannot opt in for only paid family leave.

Click here for additional information.

Background
New York has enacted a paid family leave policy, which is being phased into effect beginning January 1, 2018. It applies to employers of all sizes. When the law is fully phased-in over the next several years, employees will be eligible for 12 weeks of paid, job-protected leave when certain life events occur.

Click here for more information about the law.

To review other laws specific to New York, visit the State Laws section, click on New York, and choose your topic of interest from the left-hand navigation menu.