The New York Department of Financial Services (NY DFS) announced the applicable premium rate and maximum employee contribution for Paid Family Leave (NY PFL) coverage beginning January 1, 2024.
NY PFL applies to all private employers, including out-of-state employers, with at least one employee working in New York. The state’s PFL program provides eligible employees with a portion of their wages while taking time off to bond with a child, care for a family member with a serious health condition, or handle personal matters when a family member is deployed abroad on active military service. PFL may also be available for use in situations when an employee or minor dependent child is under an order of quarantine or isolation due to COVID-19.
The PFL premium rate, like the benefit amount, is set as a percentage of an employee's covered wages, so the premium paid by an employee depends on how much an employee earns. NY PFL premiums can be funded through post-tax employee payroll deductions or can be paid directly by the employer at the employer’s discretion.
Effective January 1, 2024, the NY PFL premium rate will be 0.373% of covered payroll (down from 0.455% in 2023). The covered payroll threshold (i.e., the statewide average weekly wage multiplied by 52) will increase to $89,343.80/year (up from $87,785.88/year for 2023). Therefore, the maximum per employee NY PFL premium will be $333.25/year for 2024 (down from $399.43/year for 2023).
Those earning less pay a lower premium, and those earning more will pay a higher premium as they are eligible for higher benefits, up to the maximum PFL benefit of 67% of the statewide average weekly wage, which is $1,718.15 for 2024 (up from $1,688.19 in 2023). This means the maximum weekly benefit for 2024 is $1,151.16 (up from $1,131.09/week for 2023).
Employers should work with their carriers and payroll providers to ensure the premium rates are properly implemented and communicated. Additionally, employers should be aware that the Model Language for Employee Materials and Payroll Deduction Notice were updated for 2024.
For further information on NY PFL, download our publication, New York Paid Family Leave: A Guide for Employers.
New York Paid Family Leave: Updates for 2024 »
PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.
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