- Emerging Issues Regarding Paid Family Leave
- February 13, 2018 | Author: Paul F. Keneally
- Law Firm: Underberg & Kessler LLP - Rochester Office
We are a week or so into the Paid Family Leave era in New York, and several questions have popped up frequently from clients, including:
• Funding – How much will employees have to pay out of their paychecks for this benefit? It is 0.126% of the employee’s weekly wage, capped at 0.126% of the New York State Average Weekly Wage of $1,305.92 ($1.65). Therefore, no employee will pay more than $1.65 per week for paid family leave.
• Eligibility – Which employees are eligible for paid family leave? Both full-time employees (defined as those who work a regular schedule of 20 or more hours per week for 26 consecutive weeks) and part-time employees are eligible, once they have worked a total of 175 days for the same employer. Those who do not fit either of these categories must be given the option to avoid paying the premium by the employer.• Taxes – Are Paid Family Leave premiums and benefits taxable? Paid Family Leave premiums are taken from the employees’ after-tax wages, and the benefits are taxable.