As the end of summer approaches, we turn our attention to the new year and, with it, changes to New York Paid Family Leave.
On September 1, 2020, the New York Department of Financial Services (DFS) published the new premium rate for Paid Family Leave (PFL) benefits for the calendar year 2021. The maximum contribution rate will be set at 0.511% of the employee’s gross annualized wages, which includes a 0.005% risk adjustment for COVID-19 quarantine claims.
With the New York State Average Weekly Wage (NYSAWW) capped at $75,408.84 (based on the new New York State Average Weekly Wage (NYSAWW) - learn more here),* the maximum employee contribution is set at $385.34 per employee for 2021.
The year 2021 marks the 4th and final year of the phase-in period of Paid Family Leave benefits in New York. For 2021 and beyond, the maximum benefit duration will be 12-weeks, and the maximum weekly benefit rate will be 67% of the employee’s Average Weekly Wage capped at 67% of the NYSAWW (max of $971.61 per week in 2021).
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*NY Department of Labor releases the updated NYSAWW on or about every March 31.
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. Any PFL information is as of the blog post’s date stamp; it is based on the applicable statutes and regulations, and may change as regulations evolve or NY State issues guidance regarding Paid Family Leave regulations. Have more questions? Email us at pflquestions@shelterpoint.com