What Brokers Need to Know about Paid Family Leave - Selling PFL

Paid Family Leave is deeply entwined with DBL, and with the Family Medical Leave Act (FMLA) for groups of 50+ employees. Since PFL is related to the health side of the insurance spectrum, it may come more naturally to benefit brokers.

However, since PFL was made part of the mandatory DBL policy — which can be written by any NY insurance licensee — P&C brokers have to navigate this new territory.

Whichever side of the spectrum you’re on, ShelterPoint has the information you need to be better informed on the specific details. Learn more about PFL Vs. DBL and PFL Vs. FMLA.

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Paid Family Leave Rate

The 2018 maximum contribution rate for Paid Family Leave is 0.126% of the employee’s annualized wages capped at the annualized New York State Average Weekly Wage (NYSAWW) of $67,907.84 per year;*  which means the maximum annual premium to be charged to an employee for Paid Family Leave is $85.56 per year. Use our calculator to get a quick estimate on the annual Paid Family Leave premium.

As PFL is a rider to DBL, the premium gets billed together — and will need to be paid together. Your clients must pay the premium for their entire group, whether they withhold from employees or not. Employers that take contributions cannot take retroactive deductions, or collect more than the allowable maximum contribution for Paid Family Leave.

While your clients can choose to collect DBL and PFL employee contributions from an employee who is out on DBL or PFL, they cannot collect Paid Family Leave contributions for an employee who is not yet eligible for PFL while that employee is out on DBL.

Read more here on NY Paid Family Leave withholdings.
 

*NY Department of Labor releases the updated NYSAWW every March 31.

 

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More NY Paid Family Leave Resources

ShelterPoint will keep you in-the-know on the latest news, regulations, and updates as Paid Family Leave continues to roll out between now and 2021. We have the tools, information, and tips to keep you compliant with all the changes to Paid Family Leave. Latest Resource Articles

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