Leave insurance funded by employees
New York State Paid Family Leave is the name of an insurance that employees can fund through payroll deductions. The funding amount is low. In addition, the contribution rate has reduced despite the fact that the benefits cover more family members in 2023 (siblings).
How do payment deductions for leaves work?
The percentage employees are contributing in 2023 is 0.455% of their gross wage for a pay period. The maximum annual 2023 contribution for an employee is $399.43. This amount is less than the maximum 2022 contribution by $24.28.
What are some examples of payment contributions based on income levels?
The following are examples of employee contributions based on their weekly earnings:
- $519 weekly earning (totaling about $27,000 a year). Payment would be $2.36 of their gross wage a week ($519×0.455=$2.36) While on leave, an employee at this income level would receive $347.73 per week, which would be a maximum total benefit of $4,172.76.
- $1,000 weekly earning (totaling $52,000 a year). Payment would be $4.55 of their gross wage a week ($1000×0.455=$4.55) While on leave, an employee at this income level would receive $670 per week, which would be a maximum total benefit of $8,040.
- $1,688.19 weekly earning (totaling about $87,000 a year) is also the NYSAWW cap amount. Payment would be 0.455% of their gross wage a week until reaching the maximum of $399.43. While on leave, an employee at this income level would receive $1,131.08 per week, which would be a maximum total benefit of $13,572.96.
(Reference: NY.gov https://paidfamilyleave.ny.gov/2023)
As an employer, do you have legal concerns about New York State Paid Family Leave insurance?
If you have questions about how the paid leave insurance affects your business, arrange a consultation with an experienced employment defense lawyer. Call Stephen D. Hans & Associates, P.C. at (718) 275-6500.