COMPLIANCE UPDATE (See “ADS Action” Below)
In April of 2016, legislation enacting New York’s Paid Family Leave (PFL) program was signed into law, which is among the nation’s strongest and most comprehensive paid leave policies. The law, set to begin January 1st, 2018, was designed to provide job protection, wage replacement, and to reduce economic risk for employees who take time away from work to address certain qualifying events, such as maternity leave or caring for a relative with a serious health condition.
PFL Benefit Overview
Under the the new law, beginning January 2018, employers are required to provide eligible employees up to eight weeks of paid family leave, including 50% of the employee’s gross wages, but not to exceed 50% of the New York state Average Weekly Wage (AWW) in the first year as defined by the New York Department of Financial Services (DFS). The current AWW is set at $1,305.92. Employees are eligible for Paid Family Leave after working full-time for their employer for 26 weeks or part-time for 175 days.
The PFL benefit is set to increase over four years. By 2021, eligible employees may take up to 12 weeks. Employees may also receive 67% of their weekly wage, with a maximum pay of 67% of the state’s Average Weekly Wage (AWW) for that period.
Primary uses for the benefit include maternity and paternity leave, caring for an immediate family member with a serious health condition, or caring for family in the event of active military duty.
PFL Employee Contributions
The PFL benefit will be funded through employee payroll deductions. The employee contribution will be 0.126% of the employee’s gross wage, but not greater than 0.126% of the state’s Average Weekly Wage (AWW). In other words, in 2018 for employees earning more than the state’s average wage, the maximum contribution is $1.65 per week. For employees earning less, their contribution will be applied according to the 0.126% rate.
Employers may elect (see below) to begin making payroll deductions as of July 1st, 2017 (optional) to begin funding the program, and will be required to begin payroll deductions as of January 1st, 2018.
Contact Your Benefits Broker
The PFL benefit will be primarily provided through insurance coverage, typically within the same policy as a disability benefit. Now is an ideal time to contact your benefits broker for more detailed information about the program and to ensure your company is prepared for these changes.
Read below to learn more about what Advanced Data Source is doing in response to this update.
New Deduction Codes
For employers who elect to begin payroll deductions beginning July 1, 2017 (optional), deduction codes will be added to the company and applicable employees.
Regardless of enrollment, beginning January 1, 2018, payroll deductions will be added to all applicable employers and employees according to state program guidelines.
Please Complete the Online Form
Register – Please complete the following form to register for Paid Family Leave deductions:
Contact Your Benefits Broker
As a reminder, the PFL benefit will be primarily provided through insurance coverage, typically within the same policy as a disability benefit. Now is an ideal time to contact your benefits broker for more detailed information about the program and to ensure your company is prepared for these changes.