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New York: Paid Family Leave Benefit Schedule Update

On August 30, 2019, New York published the updated premium rate for Paid Family Leave (PFL) benefits and maximum employee contribution for coverage in 2020.

The state’s PFL is fully funded by employees, and employers must deduct a portion of an employee’s average weekly wage (AWW), not to exceed the statewide average weekly wage (SAWW).

Beginning January 1, 2020, employers must deduct 0.270% of an employee’s wages each pay period, up to an annual maximum deduction of $196.72. If an employee’s contributions reach the annual maximum during the year, the employer must stop deducting PFL contributions for that employee for the remainder of the year.

Employers should also note that starting January 1, 2020, eligible employees using PFL benefits will receive 60% of their AWW, up to 60% of the SAWW, for up to 10 weeks of leave. Employers should prepare to adjust payroll practices and have leave policies reviewed for compliance.

2019

2020

Weekly Benefit (% of AWW) 55% 60%
Benefit Amount 10 Weeks 10 Weeks
NYS Average Weekly Wage $1,357.11 $1,401.17
Annualized NYS Average $70,569.72 $72,860.84
Weekly Wage Cap Maximum Weekly Benefit $746.41 $840.70
Employee Contribution Rate 0.513% of wages per pay period 0.270% of wages per pay period
Maximum Annual Contribution $107.97 $196.72

Wondering how this will impact your organization? Reach out to a OneDigital Strategist today. For more compliance and regulatory updates, visit OneDigital’s Compliance Confidence blog today.

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