The Superintendent of the New York State Department of Financial Services recently announced the required Premium Rate to be used for employee payroll deductions covering the cost of Paid Family Leave Insurance.
Based on the economic factors outlined in the legislation, the Superintendent will calculate the rate annually based on average weekly wage and claims data then announce the new rate annually. The premium rate for Family Leave Benefits for coverage beginning January 1, 2019 shall reflect 0.153% of an employee’s gross wages each pay period up to and not to exceed an annual maximum employee contribution of $107.97. If an employee’s contributions reach the annual maximum employee contribution of $107.97 before the end of the calendar year, the employee shall not be liable for any additional contributions for that year.
The new rate is an increase from the 2018 rate of 0.126% of wages or an annual maximum $85.56. An annual increase of $22.41
Employers should begin collecting at the new rate for payrolls after January 1, 2019. Paylocity systems will be updated to reflect the change prior to January 1, 2019.
Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.
This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.