NYS Paid Family Leave Rate Increase
The New York State Department of Financial Services has released the 2021 Paid Family Leave premium amount, which is more than double last year’s rate. Moreover, the rate is now over 400% of the initial rate in 2016. The rate for 2021 is .511% of employee income up to a maximum of the State average wage of $75,408.84.
2021 is the last year of a phased implementation for NYS PFL. Starting in 2016 the benefits were 50% of wages and lasted up to 8 weeks. In 2021 the benefits will be increased to 67% of wages and last up to 12 weeks of leave. The additional benefits alone may account for much of the rate increase. PFL leave parameters were also adjusted early this year to include benefits specific for COVID-19 claims – see our previous blog post describing the change.
What You Need To Do:
Employers need to update their payroll systems, or discuss with their payroll provider the 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 2021 rate early, as well.
If you have questions regarding NYS Paid Family Leave, or any other employee benefits, please reach out to a KBM Management Account Executive.