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 2020 maximum contribution rate for Paid Family Leave is 0.27% of the employee’s annualized wages, capped at the annualized New York State Average Weekly Wage (NYSAWW) of $72,860.84 per year;* which means the maximum annual premium to be charged to an employee for Paid Family Leave is $196.72 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.
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.
TOOLS FOR YOU
Use our calculator to get a quick estimate on your annual Paid Family Leave premium.