We are a week or so into the Paid Family Leave era in New York, and several questions have popped up frequently from clients, including:
- Funding – How much will employees have to pay out of their paychecks for this benefit? It is 0.126% of the employee’s weekly wage, capped at 0.126% of the New York State Average Weekly Wage of $1,305.92 ($1.65). Therefore, no employee will pay more than $1.65 per week for paid family leave.
- Eligibility – Which employees are eligible for paid family leave? Both full-time employees (defined as those who work a regular schedule of 20 or more hours per week for 26 consecutive weeks) and part-time employees are eligible, once they have worked a total of 175 days for the same employer. Those who do not fit either of these categories must be given the option to avoid paying the premium by the employer.
- Taxes – Are Paid Family Leave premiums and benefits taxable? Paid Family Leave premiums are taken from the employees’ after-tax wages, and the benefits are taxable.