PFL Rates & Withholdings
Paid Family Leave Rates
The Paid Family Leave rate is set by New York State and can be adjusted annually, effective every January 1. The 2018 rate was set by June 1, 2017, and thereafter, updated rates are set and announced by NY State by September 1 each year for the following calendar year.
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.
As PFL is a rider to DBL, the premium gets billed together — and will need to be paid together. You must pay the premium for your entire group, whether you withhold from employees or not. Employers that take PFL contributions cannot take retroactive deductions, or collect more than the allowable maximum contribution for Paid Family Leave.
Estimate how much Paid Family Leave will cost your business now.
*NY Department of Labor releases the updated NYSAWW every March 31.
While Paid Family Leave is frequently referred to as an employee-funded benefit, businesses are not required to withhold from employees. If you decide to take deductions, you can’t take more than the employee’s maximum contribution (check out the ABCs of PFL for more details). The maximum contribution may change every year.
Read more on how these PFL withholdings are required to be structured.
Employers were able to take deductions as early as July 1, 2017, but you cannot take retroactive payroll deductions for Paid Family Leave. If an employee left your company before January 2018, you don’t have to refund any early PFL deductions taken. You must pay the premium for your entire group, whether you withhold from employees or not.
While you can choose to collect DBL and PFL employee contributions from an employee who is out on DBL or PFL, you cannot collect PFL contributions from an employee who is not yet eligible for PFL while that employee is out on DBL.
Learn more about PFL withholdings here.
TOOLS FOR YOU
Use our calculator to get a quick estimate on your annual Paid Family Leave premium.