On October 19, 2022, the State of Connecticut announced the 2023 maximum contribution rate for Paid Family & Medical Leave will remain at 0.5%, up to the Social Security wage contribution cap, which has been adjusted to $160,200 for 2023.
How much will employees contribute for CT PFML in 2023?
The maximum employee contribution for CT PFML is determined by multiplying two factors:
- The federal Social Security Income Limit for 2023: $160,200.
- 2023 CT Paid Family & Medical Leave contribution rate: 0.5%.
This means that an employee’s maximum contribution in 2023 to the State Plan will be $801 for the year.
What counts as wages when calculating the state’s CT PFML contribution?
For PFML, wages used to determine earnings for FICA purposes are counted and may include salary or hourly pay, vacation pay, holiday pay, tips, commissions, severance pay, and the cash value of any “in-kind” payments.
Does this affect Private Plan rates?
Private plan rates are not tied to the contribution rate for the State’s Paid Leave Trust Fund, so your 2023 rates may not be affected. Be sure to speak to your broker about any questions about the rate. Keep in mind that private plan coverage cannot cost employees more than what they would be required to contribute under the State Plan. This means that if your private plan rate is higher than the State rate, you, as the employer, are required to cover any cost in excess of the State rate. And, if your private plan rate is lower than the State’s rate, then the employee contributions would be capped at the private plan’s rate. Learn more about private plans here.
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This blog post is for informational purposes only and is not intended to provide legal counsel. Please consult with an appropriate professional for legal and compliance advice. The information in this material is as of the blog post’s date stamp; it is based on our knowledge of the applicable statutes and regulations and may change as the CT policy & procedures evolve or Connecticut Paid Leave Authority issues guidance regarding CT PFML policy & procedures guidelines.