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.
$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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