On August 30th, the Department of Financial Services (DFS) published the NY Paid Family Leave (PFL) premium rate percentage for the 2020 calendar year. The New York State Average Weekly Wage was also announced.
For 2020, the employee contribution rate for Paid Family Leave will increase from 0.153% to 0.270% of an employee’s gross wages each pay period. Contributions will be capped at 0.270% of the 2020 New York State Average Weekly Wage (SAWW) of $1,401.17 ($72,860.84 per year), which translates to a maximum annual premium contribution of $196.72 per employee. The DFS bases the premium increase on available 2018 and 2019 data analysis relating to factors such as claim frequency and duration, average covered payroll of those making claims, and the anticipated shift of claims to PFL due to the higher benefits available.
Benefit amounts will increase in 2020 as well. Currently employees are eligible to take up to 10 weeks of PFL and earn a maximum of 55% of their average weekly wage (not to exceed 55% of the SAWW). Per the previously established schedule, employees may utilize up to 10 weeks of leave at 60% of their weekly wage in 2020. Benefits will continue to increase each year until 2021:
|Effective Date||Max. Length of PFL||% of Employee’s Average Weekly Wage||To the Max % of NY Average Weekly Wage|
|January 1, 2018||8 Weeks||50%||50%|
|January 1, 2019||10 Weeks||55%||55%|
|January 1, 2020||10 Weeks||60%||60%|
|January 1, 2021||12 Weeks||67%||67%|
The SAWW for 2020 has been set at $1,401.17, which caps the max benefit an employee can collect at $840.70 per week.
Bene-Care Payroll clients will automatically have the deduction amounts updated within iSolved, and won’t need to take any action to ensure proper amounts are withheld beginning in January 2020. Those who utilize another payroll vendor should work with their payroll specialist to ensure systems are updated.
Please contact us with any questions you may have. We are always available to offer guidance and solutions.