2019 Inflationary Updates for New York Paid Family Leave Program (article)
The New York paid family leave benefit took effect on January 1 of this year. This law builds on the state temporary disability law and provides paid time off for baby bonding, to care for a family member, or military exigency. Recently, the New York Department of Financial Services announced inflationary changes relating to the duration and amount of the paid family leave benefit, as well as the payroll contribution amount for 2019.
The paid family leave benefit is fully funded by employees through a payroll deduction. At its discretion, the employer can choose to pay all or a portion of the cost of the program. The 2018 payroll contribution is 0.126% of an employee’s weekly wage and capped at an annual maximum of $85.56. For 2019, the contribution increases to 0.153% of an employee’s gross wages each pay period and capped at a maximum of $107.97.
Beginning January 1, 2019, the amount of leave available to an eligible employee increases from 8 weeks to 10 weeks. Further, the benefit amount increases to 55% of an individual’s average weekly wage, up to a cap of 55% of the current Statewide Average Weekly Wage of $1,357.11. The maximum weekly benefit for 2019 is capped at $746.41.
Additional information about the New York Paid Family Leave Program is available on the state’s dedicated webpage.
The information contained in this article is provided as general guidance and may be affected by changes in law or regulation. This article is not intended to replace or substitute for accounting or other professional advice. Please consult a CBIZ professional. This information is provided as-is with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.