What Businesses Need to Know about PFL 

We have a comprehensive library of PFL resources that are deep-dives on many PFL related topics.But, here are 10 quick facts you should know about NY’s Paid Family Leave.

  1. If you are required to provide DBL, you are required to provide PFL.
  2. Employees who are covered under DBL are covered (and can take) Paid Family Leave.
  3. Paid Family Leave benefits gradually increase every year until 2021, so make sure you stay on top of these changes. To estimate the potential PFL benefit, click here!
  4. Employees need to provide 30 days’ notice for foreseeable leave.
  5. You must include PFL in your written guidance for employees concerning employee benefits & leave rights, such as in an employee handbook.
  6. PFL Expert Tip: Even if you don’t have written manuals now, you need to provide written guidance on PFL, including information on how to file a claim. Get help here.
  7. Just like with DBL, you need to display and keep posted a printed notice concerning PFL as published by NY State. If you’re a ShelterPoint DBL Policyholder you can get yours here.
  8. PFL provides job security for employees out on paid leave, similar to unpaid leave with FMLA, but regardless of employer size.
  9. If you decline to reinstate an employee returning from PFL, the employee may report your business to NY State. You then have 30 days to either take corrective action or file a formal response to the employee.
  10. You cannot require employees to exhaust accumulated PTO before letting them go on PFL (unless it’s also a FMLA approved leave).
  11. You cannot take retroactive deductions, nor can you take more than the allowable contribution amount.
  12. PFL Expert Tip: To ensure you stay on top of deductions, make sure you work closely with your payroll manager or payroll company to avoid any issues.
ShelterPoint

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 2019 maximum contribution rate for Paid Family Leave is 0.153% of the employee’s annualized wages, capped at the annualized New York State Average Weekly Wage (NYSAWW) of $70,569.72 per year;*  which means the maximum annual premium to be charged to an employee for Paid Family Leave is $107.97 per year.

As PFL is a rider to DBL (Statutory Short-term Disability Insurance), 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 per employee.

Estimate how much Paid Family Leave will cost your business now.

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

PFL Withholdings/Deductions

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 to recoup some or all of the PFL premium you have to pay, you can’t take more than each 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.

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.
 

ShelterPoint  TOOLS FOR YOU

Use our calculator to get a quick estimate on your annual Paid Family Leave premium.

 

Latest Resources

How To Calculate PFL Benefits in 2019

Sheila McGarrigle 0 135 Article rating: No rating

PFL family
Knowing how much time an employee can take with Paid Family Leave may seem tricky.  Employees are trying to figure out just how much PFL time can they can take in 2019 should they need to use it.  So how do you calculate…

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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. 

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