New Paid Family Leave Rate for 2022
The New York State Department of Financial Services released the 2022 rate for Paid Family Leave (PFL). The State is retaining the 2021 rate of 0.511% of covered wages up to a maximum of the State average wage (NYSAWW). However, the State is increasing the NYSAWW to $82,917.64. This results in the maximum any employee can pay towards PFL $423.71 per year.
New York State describes their methodology for determining this rate including claims that have been filed and overall usage of PFL. Ironically, with fewer people working over the past year due to the pandemic claims are down. You need to be working to claim PFL.
It’s important to update your payroll information with this new rate. Most employers started payroll deductions for PFL at the first of the year, however the original law allows for deductions to start up to 6 months prior to the year. If your business started early you may want to apply the new rate early as well.
PFL started in 2018 with a benefit of 50% of the employee’s annual wages up to the State’s average wage for up to 8 weeks. Being implemented over four years the final benefit in 2021 will be 12 weeks of benefit at 67% of the employee’s wages up to the State average wage. It remains at this level for 2022.
If you have questions regarding NYS Paid Family Leave please reach out to us at KBM.