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Paid Family Leave Update – 2017/2018 Employee Deductions

New York State employers subject to Paid Family Leave (PFL) were permitted to take the PFL premium deduction beginning July 1, 2017. The thought was that the early deductions would allow employers to collect funds in advance to pay for the PFL premium due in 2018. The 2018 annual maximum employee PFL contribution is $85.56, regardless of when these monies for the premium were collected. What does this mean for you as the employer? Employee PFL deductions taken in 2017 must be credited toward the employee’s 2018 PFL cap of $85.56.

Hypothetical Example

$85.56 (total deduction allowed per employee in 2017 & 2018)

-$25.00 = 2017 deduction for employee

$60.56 = 2018 total deduction allowed for employee

Paid Family Leave information for employers can be found here.

“Early adopter” employers should work with their payroll provider to comply with these amended requirements.

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HR Works, Inc., headquartered at 200 WillowBrook Office Park in Fairport (Rochester), New York, with an office in East Syracuse, is a human resource management outsourcing and consulting firm serving clients throughout the United States. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.