New York State (NYS) has clarified that New York Paid Family Leave (NY PFL) employee premiums for 2018 should be 0.126% of an employee’s weekly wage and are capped at an annual maximum of $85.56 for 2018.
Original guidance issued by NYS stated that the maximum employee contribution rate for NY PFL was 0.126% of the employee’s weekly wage (capped at New York’s average weekly wage, which is currently $1,305.92), up to $1.65 per week. This guidance was understood to mean that employee contributions were capped at $1.65 per week, but updated guidance states that there is no week-by-week cap.
The latest guidance by NYS is consistent with Insurance Circular Letter No. 11 issued by the NY State Department of Financial Services last summer which states: “For the calendar year 2018, the annualized statewide average weekly wage is $67,908, which means the maximum annual premium to be charged to an employee for paid family leave benefits coverage for 2018 is $85.56.”
Based on this clarification, employers can collect premiums by withholding 0.126% of every wage dollar paid until the $85.56 annual cap is met, then stop withholding. This means that 0.126% of an employee’s weekly wage may be higher or lower depending on payments, such as, for example, commissions, bonuses, or overtime in some weeks.
We have updated our Questions & Answers of NY Paid Family Leave on our website to clarify this point.
If you have any questions, please don’t hesitate to contact your Crystal & Company representative.