New Hampshire Paid Family Leave Plan

At-A-Glance

• The PFL program is voluntary.
• Employees who work for employers who opt-in to the program can participate.
• Coverage for employees begin on January 1, 2023.
• Employees will receive 60% of their average weekly wage for up to 6 weeks.

Introduction

On June 25, 2021, New Hampshire Governor Chris Sununu signed a budget bill that included a voluntary program called the Granite State Paid Family Leave Plan. Coverage for employees will begin on January 1, 2023.  The effective date to begin payroll deductions of contributions and the tax rate has not yet been released by the agency.

Employer Opt-In

Employers that choose to opt-in to the program must participate in payroll deductions and provide increased employment protections, such as continuation of health insurance coverage during leave, as well as protection from discrimination and retaliation from utilizing the leave. A Request for Proposal process begins no later than March 31, 2022.

Tax credits are provided to employers who opt-in to the program. Individuals working for employers that do not participate in the program or have equivalent paid leave programs can opt-in to the Granite State Paid Family Leave Plan through the individual pool. Employers are responsible for remitting the employee paid premiums to the state by a payroll deduction.

Employee Benefits

The Granite State Paid Family Leave Plan provides New Hampshire employees with 60 percent wage replacement for up to six weeks of work per year if they take time off for personal health or family reasons. Wages that are used to determine the 60% FMLI coverage shall be capped at the amount of the Social Security Taxable Wage Maximum as amended from time to time.

Qualifying Reasons

Employees who work for businesses that participate in the voluntary program can utilize the leave for:

• The birth of a child or caring for a newborn child for the first year;
• For newly adopted or fostered children within the first year;
• Care for an employee’s spouse, child, or parent with a serious health condition;
• Care for a spouse, child, or parent who is in the military;
• A personal serious health condition that is independent of employment, if the employer does not offer short-term disability insurance.

Next Steps

Paylocity will continue to monitor this program and will provide updates as more information is released.  In the meantime, employers should review requirements and make a determination if they will choose to opt-in.

Thank you for choosing Paylocity as your Payroll Tax and HCM partner.

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.