2020 Paid Family Leave Premium Release
The New York State Department of Financial Services (DFS) has released the 2020 premium rate for Paid Family Leave (PFL). The 2019 rate of .153% of gross wages will be increasing to .270% (not to exceed $196.72 per employee annually). Benefit amounts are also increasing in 2020 from 55% to 60% of an eligible employee’s average weekly wage (AWW).
Employers need to update their payroll systems or provider with this rate change before the beginning of the new year. Most employers start payroll deductions for PFL at the first of the year, however the law initially allowed for deductions to start up to 6 months prior to the coming year. If your business started early in the past you may want to apply the 2020 rate early, as well.
PFL became effective in 2018 with a benefit of 50% of an employee’s AWW, up to the State’s AWW (currently $746.41), for up to 8 weeks. Benefit structure is being implemented over four years and the final benefit amounts in 2021 and beyond will be 12 weeks of benefit at 67% of the employee’s AWW. The increase in benefits, along with the increased utilization of the benefit, is being used to determine premium rates that employees are required to pay. Premiums have already more than doubled in the first two years.
If you have questions regarding NYS Paid Family Leave, or any other employee benefits, please reach out to a KBM Account Executive.