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New York Personal Family Leave Deduction


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This is for New York State preparers in this board.

New York State is requiring an employee funded Family Personal Leave deduction form the payroll but there are no guidelines what to do with the money that is being withheld from Employee paychecks.

Most confusing part is on one hand they have labeled it voluntary post tax voluntary deduction like medical insurance deduction and on the other hand they are saying all full time and part time employees are required to join.

They are calling it similar to Mandatory New York Disability insurance deduction but no where in the instruction it says whether an employer is required to purchase this type of insurance and where do you go about buying this type of insurance.

This is supposed to start effective today.

Has anybody in this board come across this and how are you handling it.

thanks

 

Naveen Mohan

 

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Well yes - most of us by now have been informed that the NYS Family Leave Insurance is covered through your employer disability insurance carrier - the VOLUNTARY withholding starts July 1, 2017  - the MANDATORY employee withholding starts January 1, 2018 - the rate is .126% x maximum weekly salary of $ 1,305.92 , or $ 1.65.

Yes - it is true - not all the rules have been put in place yet.

However - NYS does have a link on its website for further clarification of these details.

It is suggested you speak to the business insurance agent that provides the disability insurance policy - when I contacted them a month ago - they knew nothing about it - I guess they haven't been briefed yet.

Now that you've been informed of this from the NYSSEA Google Group board, as well as here - continue going to other sites to present the same problem.

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I only have to worry about the withholding... Yes, it is optional to withhold for the remainder of 2017, and required starting with 2018.

For providing the actual benefit, I would research that separately.  There may be options such as some sort of policy, or even self insured.  I did not read much in that area, but I gathered employers can start collecting now, to help cover the cost, but do not have to buy or offer coverage until 2018.  BS alert went off for me, that if the PTB are allowing collection for 6 months prior, the rate is too low to cover what the actuaries believe is needed.  Either the employER has to fund the difference, or the rate will go up quickly.  There will also be cases where an employer collects, then never buys a policy or goes away.  Strange to have collection power but no trust fund to pay into.

(Funded in full by employees is untrue.  Employers have to spend time/money to manage the process, which is not reimbursed by the employees.)

 

https://www.ny.gov/new-york-state-paid-family-leave/helping-new-yorkers-need

Businesses play an important role in implementing Paid Family Leave.

What are an employer’s obligations under Paid Family Leave?
Employers will be required to purchase a Paid Family Leave insurance policy or self-insure. The premium of the policy will be paid for by your employees.

An employer may not discriminate against employees for taking Paid Family Leave. Employees are guaranteed job protection upon return from Paid Family Leave. For purposes of the Paid Family Leave program, job protection is defined as returning your employee to the same or a comparable job. Employees are also guaranteed continuation of health insurance while out on Paid Family Leave.

When does a new employer have to provide Paid Family Leave insurance coverage? 

A new employer that has had 1 or more employees on each of at least 30 days in any calendar year is required to provide Paid Family Leave insurance coverage upon the expiration of four weeks after that 30th day of such employment.

Employers may collect employee contributions prior to obtaining the insurance policy or self-insured approval.

When will new employees be eligible for Paid Family Leave? 
A new employee becomes eligible for Paid Family Leave benefits 26 weeks from the date they were hired.

If the new employee is part-time, they become eligible after working 175 days.

Where do I obtain a Paid Family Leave policy?
Employers should contact their current New York Disability Benefits carrier to learn more about adding Paid Family Leave coverage. If you renew or start New York State Disability Benefits in 2017, benefits won't start any earlier than January 1, 2018.

How much will Paid Family Leave cost a business?
The Paid Family Leave insurance premium will be funded in full by your employees.

Will employers have to pay an employee’s salary while the worker is on leave?
No. The employee will receive the Paid Family Leave benefit through the insurance policy.

What information do I need to communicate to my insurer when an employee requests Paid Family Leave?
As an employer, you are responsible to complete the employer portion of the claim form and provide detailed information to the insurance carrier regarding the exact dates an employee has used Paid Family Leave.

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