As previously communicated in our e-Alert from December 20: the Paid Family Leave (PFL) program for New York State took effect on January 1, 2018. New York State has issued additional guidance and modified employee withholding guidelines.

When the law is fully phased in over the next several years, employees will be eligible for 12 weeks of paid, job-protected leave to bond with a new child, care for a family member with a serious health condition, or assist with family obligations when a family member is called to active military service. During any period of family leave, employers are required to maintain any existing health benefits of eligible employees for the duration of the leave. Further details can be found here.

What has changed?

Previously, weekly deductions were required to be capped at $1.65 per week. This has been modified to replace the weekly cap with an annual cap of $85.56. The 2018 payroll contribution is 0.126% of an employee’s weekly wage. If an employee earns less than the New York State Average Weekly Wage ($1305.92 per week), they will have an annual contribution amount less than $85.56.

Employers who participated as ‘Early Adopters’ in 2017 should count all 2017 contributions toward the 2018 annual maximum contribution. NY State has provided a calculator for employee contributions here. 

For our current Integrated HR Services (Payroll, Benefits, and HR) clients, ADP is planning system modifications to comply with these changes to be in effect for payrolls processed on or after March 9, 2018.

This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this blog, please contact HR Knowledge at 508.339.1300 or email us.