New York State (NYS) has signed legislation that will require all private employers to provide employees with paid family leave. Employers will be required to purchase a paid family leave insurance policy or self-insure. The premium for the policy will be funded solely by employees through a payroll tax. Our New York tax accountants can help you understand the implications for your business.
Payroll Deductions Will Be Required
Withholding will automatically begin for all employees with New York Unemployment beginning with checks dated January 1, 2018. Starting July 1, 2017, voluntary employee deductions can be taken for the 2018 coverage period.
Employee Eligibility and Notice Requirements
To be eligible for the benefit, employees must generally work full-time for their employer for at least 26 consecutive weeks or part-time for at least 175 days. When the need for family leave is foreseeable, employees must generally provide at least 30 days’ notice to their employer.
Parameters Regarding Use of Leave
Beginning January 1, 2018, employees may use paid family leave:
(1) To care for a family member with a serious health condition;
(2) To bond with the employee’s child during the first 12 months after the child’s birth or after the placement of the child for adoption or foster care; or
(3) Because of any qualifying exigency arising out of the fact that the spouse, domestic partner, child, or parent of the employee is on active duty (or has been notified of an impending call or order to active duty) in the armed forces of the United States.
Benefit Caps: Year Duration Wage Replacement
8 weeks – 50% of the employee’s average weekly wage or 50% of the statewide average weekly wage, whichever is less.
10 weeks – 55% of the employee’s average weekly wage or 55% of the statewide average weekly wage, whichever is less.
10 weeks – 60% of the employee’s average weekly wage or 60% of the statewide average weekly wage, whichever is less
12 weeks – 67% of the employee’s average weekly wage or 67% of the statewide average weekly wage, whichever is less.
Vacation and Personal Leave
Employers may offer employees the option of using any accrued, unused paid vacation or personal leave during family leave and receive their full salary. Employers that pay employees their full salary during family leave may request reimbursement from the state.
Employers with employees in New York State should review their policies, forms, practices, and supervisor training to ensure compliance with the new paid family leave program. Learn more by contacting our NYC CPA office.