January 1, 2020 NY Paid Family Leave rate update
Dear Valued Clients and Prospects: As we continue to manage New York Paid Family Leave for your employees, we want to keep you up-to-date on changes that affect you and your employees. As stated by the NYS Department of Financial Services (DFS), the implementation of Paid Family Leave is graduated in from 2018 to 2021 with benefit duration moving from 8 weeks in 2018 to 12 weeks in 2021 and the benefit percentage of salary moving from 50% to 67%. To accommodate this graduation of benefits, the NY DFS publishes a new employee contribution rate and wage cap each September 1st for the upcoming year. Effective 1/1/2020, the changes are as follows:
2020 Contribution Rate: The NY DFS has determined a rate of 0.270% of an employee’s gross wages each pay period up to and not to exceed an annual maximum employee contribution of $196.72. The 2020 employee wage cap is $72,860.
2020 PFL Benefit: 60% of the employee’s average weekly wage up to the weekly benefit maximum of $840.70 for up to 10 weeks of leave.
Our insurance carrier will send a communication in the 4th quarter to all of our covered employers along with updated riders and other forms that reflect the 2020 benefit.