Last October, the paid family leave program was amended to temporarily expand benefits for eligible individuals. The Fiscal Year 2022 Budget Support Act made permanent many of these temporary amendments, see Benefit Beat article here.

According to the Act, beginning in 2022, the durations of leave may be increased or decreased, but not below the limits in effect prior to October 1, 2021, based on the projected balance of the Universal Paid Leave Fund and other fiscal matters. Due to a surplus in the Universal Paid Leave Fund, the maximum durations of leave were achieved earlier than expected.

Beginning July 1, 2022, eligible employees can take up to 12 weeks (currently 8 weeks) of parental leave, up to 12 weeks (currently 6 weeks) of family leave, and up to 12 weeks (currently 6 weeks) of medical leave for a cap of 12 weeks in a year. The amount of prenatal leave remains at 2 weeks.

In addition, the employer payroll tax used to fund this leave is decreased from 0.62% to 0.26% beginning in July.

Future guidance from the Department of Employment Services, which administers the program, is likely forthcoming as they work to implement the changes as soon as possible.

The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. This information is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. 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.