As we move closer to 2018, the regulations on the New York State Paid Family Leave Law will continue to be communicated from the state. On June 1, 2017, the state released the maximum employee contributions. This will be the average deduction that will be taken out of the employee’s paycheck.
Below are the 3 updates:
- Clarification on the payroll deductions and employer portions. This clarification is not new. However, I have been asked about the employer portion many times. The paid family leave “is intended to be funded entirely through employee payroll deductions and employers are not required to fund any portion of this benefit.”[i]
- The maximum employee contribution was set at 0.126% on June 1, 2017, of an employee’s weekly wage, up to and not to exceed 0.126% of the NY statewide average weekly wage. The current statewide wage is $1,305.92. “So, for example, if an employee’s weekly wage amounts to $1,000.00, the maximum payroll deduction for PFL would be $1.26 for that week.”[ii] If any employee makes more than $1,305.92, the weekly amount will be capped at $1.65. Multiply the 0.126% by the wage to calculate the deduction.
- The statewide average weekly wage is calculated annually on March 31st and will be based on the previous calendar year’s average weekly wage. As wages increase across the state, so will the paid family leave contribution deductions, out of the employee’s paycheck.
As new information is released, I will send a breakdown of the regulations. Now is the time to begin reviewing, drafting, updating and revising policies and procedures related to FMLA and Paid Family Leave. January 1, 2018 is only six short months away. If you are confused, ask questions and do not assume. This law is very complex, it continues to change as new regulations are slowly released.
New York State Paid Family Leave Website
Premium Rate for Family Leave Maximum Employee Benefit Contribution Website
Reminder of Previous Information:
Want to learn more? Check out the upcoming trainings I will be conducting at Elmira College, Corning Community College (CCC), 24/7 Compliance and Compliance Online in July & August:
Elmira College: SHRM Certification Exam Prep Course- September through November
Upcoming Corning Community College Training’s
247 Compliance: Performance of Dashboard Using KPIs and Designing
– Matthew Burr, HR Consultant
[iii] Guardian PPT Training Slides