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MANDATORY PAID FAMILY LEAVE BENEFIT

Geraldine Clahar - Wednesday, June 14, 2017

 

Governor Cuomo recently signed into law a new benefit that must be offered by non-governmental companies with employees in New York State.The family leave benefit will become effective on January 1, 2018.Full-time employees become eligible for benefits after at least 30 days of employment in a calendar year.Part-time employees are eligible after 175 days of employment.Employees are guaranteed job protection while they are utilizing this benefit as well as continuation of health insurance coverage.

 

BENEFIT

 

 

This benefit called “Paid Family Leave” will allow an employee to take time off from work with pay for the following reasons:

1.To care for new-born child

2.To care for a seriously ill family member

3.To assist employees when family members are called to active military service

 

The cost of this benefit will be paid for by employees via payroll deductions.The deduction will be .126% of weekly earnings up to a maximum of $164.55 weekly, based on the average weekly state wage of $1305.92.The average weekly wage will be re-calculated each year, so the maximum deduction will change yearly.

 

PHASE IN

 

 

The paid family leave benefit will be phased in over the next 4 years.

 

# weeks allowed                      % of earnings paid

YEAR 1                                              8                                                   50

YEAR 2                                            10                                                   55

YEAR 3                                            10                                                   60

YEAR 4                                            12                                                   67

 

BENEFIT CLAIMS

 

 

Family leave benefits will be paid directly to the employee by your NYS disability insurance carrier.The cost of coverage will be charged to the employer in increased disability insurance premiums.The family leave deductions withheld from employees will reimburse the employer for increase in premiums created by the family leave benefit.

 

For more information you may visit the following websites:

https://www.ny.gov

http://www.nysif.com

http://www.dfs.ny.gov


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G.A. Clahar, CPA  ·  1188 Village Ave., Baldwin, New York 11510  ·  Phone: (516) 483-3851