On September 1, 2020, the 2021 New York Paid Family Leave (PFL) employee contribution rates and updated annual cap were announced. As of January 1, 2021 the following will take effect:
- Premium Deduction Rate: 0.511% (up from 0.270% in 2020)
- Statewide Average Weekly Wage: $1,450.17 (up from $1,401.17 in 2020)
- Annual Contribution Cap: $385.34 (up from $196.72 in 2020)
The state has set forth the following PFL changes which will also take effect from 1/1/2021:
- Benefit Percentage: 67% (up from 60% in 2020)
- Maximum Benefit Duration: 12 weeks (up from 10 weeks in 2020)
- Maximum Weekly Benefit: $971.61 (up from $840.70 in 2020)
Premiums should be withheld from employees’ gross wages, until the annual cap is reached, which may occur prior to the end of the calendar year.
- Determine if you will collect the increase in premium from employees
- Prepare for updated payroll deductions and begin working with payroll vendors
- Communicate the upcoming change in deduction amounts to employees
- Review your leave of absence polices to ensure they remain compliant with the updated benefit structure for 2021
As a reminder, new parents, family members caring for sick relatives, and employees with family members deployed abroad on active military duty, became eligible for Paid Family Leave benefits starting January 1, 2018.
More information can be found at: