Starting January 1, 2018, eligible NY state employees may begin taking paid family leave under the NY State Paid Family Leave (NY PFL) Program. The program is designed to be 100% employee-funded. To support this new legislation, payroll services will begin supporting NY PFL in August 2017, and will automatically withhold the PFL deduction for NYS employees (excluding contractors), with no setup required.
Per New York’s Department of Financial Services Decision on Premium Rate published on June 1, "the maximum employee contribution for coverage beginning January 1, 2018 shall be 0.126% of an employee's weekly wage up to and not to exceed the statewide average weekly rate."
Eligible employees may begin taking paid leave under the new law as of January 1, 2018, but covered employers are permitted to begin payroll deductions to pay their PFL insurance premiums now.
To support this legislation, payroll services will automatically withhold both New York State Disability (DBL) and New York State PFL for eligible NYS employees. Payroll services will withhold up to $0.60 weekly for disability and up to $1.65 weekly for PFL, for a total of up to $2.25 weekly, depending on how much the employee earns. Employees who get paid less frequently than weekly will have their deductions pro-rated accordingly. (Payroll services already withholds New York State Disability.)
Please note, this is purely a deduction from the employee paycheck, no collections will be made or paid by payroll services on behalf of the employer. If you would prefer payroll services not withhold NY PFL and SDI from your employee payroll, please contact Customer Service.