The New York State Department of Financial Services (DFS) have published their final regulations, and rate factor for the calculations of the employee contributions and premiums for PFL benefits.
Effective January 1, 2018 all covered employers will be required to withhold contributions on behalf of employees based on their meeting the eligibility criteria full or part-time status.
THE RATE FACTOR
The rate factor used for employee PFL weekly contributions will be 0.126% of an employee's weekly wage up to and not to exceed 50% of the New York State average weekly wage (AWW).
NYS AVERAGE WEEKLY WAGE (AWW)
NYSAWW is the average weekly wage paid in New York State during the previous calendar year as reported by the Commissioner of Labor to the Superintendent of Financial Services on March 31 each year.
MAXIMUM WEEKLY CONTRIBUTION
The maximum weekly contribution rate for Paid Family Leave is 0.126% of the employee’s weekly wage which is capped at the NYS Average Weekly Wage currently $1,305.92*.
HOW TO CALCULATE CONTRIBUTIONS?
Employee Earning Maximum Weekly:
.126% x $1,305.92 (Employee Weekly Wage) = $1.65 (Employee Weekly Contribution)
Employee Earning: $1,000 Weekly:
.126% x $1,000.00 (Employee Weekly Wage) = $1.26 (Employee Weekly Contribution)
Employee Earning: $500 Weekly:
.126% x $ 500.00 (Employee Weekly Wage) = $0.63 (Employee Weekly Contribution)
Note: Employee contributions as shown are not based on or subject to any other rate factors i.e. age, gender, industry, or location.
MAXIMUM WEEKLY BENEFIT
The maximum weekly benefit for an employee Paid Family Leave for 2018 is capped at 50% of the NYS AWW ($1,305.92) or $652.96.
The Employee PFL rate factor, benefit and contributions are currently the same for all covered employer groups regardless of the number of employees, which is subject to review and change by NYS Workers’ Compensation Board and Department of Financial Services.
The Employee PFL rate factor, benefit, limits and contributions are the same for each of participating insurance carriers underwriting New York Paid Family Leave.
CONTRIBUTIONS / DEDUCTIONS
In no event may the employee's annual contribution for family leave exceed his or her per capita share of the actual annual premium charged for the same year and must be determined consistent with the principle that employees should pay the total costs of family leave premium.