New York has passed legislation that will require all private employers to provide employees with paid family leave.

Insurance Options:

Employers will be required to purchase a paid family leave insurance policy or self-insure. The premium for the policy will be funded solely by employees through a payroll deduction.

Maximum Contributions:

The premium rate and the maximum employee contribution for coverage beginning January 1, 2018 is set at 0.126% of an employee’s weekly wage up to and not to exceed the statewide average weekly wage (currently $1,305.92).

NYPFL Payroll Deductions:

Withholding will automatically begin for eligible employees with checks dated January 1, 2018. Starting July 1, 2017, voluntary employee deductions can be taken for the 2018 coverage period. If clients decide to start voluntary deductions, ADP® can set up deductions for their employees.

How the NYPFL Tax deduction works:

  • There’s no catch up;
  • The goal amount depends on the number of weeks left in 2017;
  • As of January 1, 2018, the 0.126% rate will be automatically deducted for all eligible employees.

Employee Eligibility and Notice:
To be eligible for the benefit, employees must generally work full-time for their employer for at least 26 consecutive weeks or part-time for at least 175 days. When the need for family leave is foreseeable, employees must generally provide at least 30 days’ notice to their employer.

Use of NY Family Leave:

Beginning January 1, 2018, employees may use paid family leave:

  • To care for a family member with a serious health condition;
  • To bond with the employee’s child during the first 12 months after the child’s birth or after the placement of the child for adoption or foster care; or
  • Because of any qualifying exigency arising out of the fact that the spouse, domestic partner, child, or parent of the employee is on active duty (or has been notified of an impending call or order to active duty) in the armed forces of the United States.

Paid Family Leave Benefit Caps:

Year Duration Wage Replacement
2018 8 weeks 50% of the employee’s average weekly wage or 50% of the statewide average weekly wage, whichever is less
2019 10 weeks 55% of the employee’s average weekly wage or 55% of the statewide average weekly wage, whichever is less
2020 10 weeks 60% of the employee’s average weekly wage or 60% of the statewide average weekly wage, whichever is less
2021 12 weeks 67% of the employee’s average weekly wage or 67% of the statewide average weekly wage, whichever is less

 

Vacation and Personal Leave:
Employers may offer employees the option of using any accrued, unused paid vacation or personal leave during family leave and receive their full salary. Employers that pay employees their full salary during family leave may request reimbursement from the insurance carrier.

Compliance Recommendations:
Employers with employees in New York State should review their policies, forms, practices, and supervisor training to ensure compliance with the new paid family leave program. Learn more.

For more information, please contact your ADP Associate or call the ADP Accountant HelpDesk @ 844-ADP-4CPA.