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New York Paid Family Leave Update

03/15/18

Author: ADP Admin/Tuesday, March 13, 2018/Categories: State Compliance Update, New York

Effective January 1, 2018, the New York Paid Family Leave Law (PFLL) provides broad paid family leave benefits through the state’s existing Disability Benefits Law. Under the PFLL, employers are required to maintain family leave insurance funded by employee payroll deductions. ADP TotalSource® has obtained PFLL insurance through Aetna and employee deductions from payrolls processed on or after January 1, 2018.

New York recently provided additional guidance for employers and modified the employee withholding guidelines. Previously, the New York website indicated that an employer was not permitted to deduct in excess of $1.65 per week for PFLL coverage. This weekly limit has been replaced with an annual limitation. The 2018 employee 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), they will have an annual contribution amount less than the cap of $85.56, consistent with their actual weekly wages.

New York has also provided a calculator for employees to use as a resource for calculating their paid family leave. This calculator demonstrates that the weekly limit requirement has been eliminated. To access the calculator, visit https://www.ny.gov/paid-family-leave-calculator.

ADP TotalSource has updated its payroll system to be consistent with this additional guidance. The new calculations will apply to any payrolls processed on or after March 7, 2018. As a result, your employees may notice an increase in their NY PFLL deduction amount. If you have any questions regarding this update, please contact your Payroll Service Representative.

As a reminder, ADP TotalSource previously provided an Employer Toolkit to clients with employees working in New York. This Toolkit summarizes key provisions of the New York Paid Family Leave Law and regulations and provides an overview of the claims process, as well as sample employee communications. Click here to access the Employer Toolkit.

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