Paid Family Leave Act New York State

Employers Notice – Mandatory Coverage

Effective Date January 1, 2018

Paid Family Leave Act New York

The Paid Family Leave Act New York State is new, mandatory coverage for employers in New York State. It goes into effect on January 1, 2018. Coverage Is Provided By A Licensed Disability Insurance Company. Coverage Is Paid By Each Employee – Employers Deduct Same As Taxes From The Employee’s Payroll.

Paid Family Leave Act New York State – When is this coverage used

New Parents, Adoptive Parents, Foster Parents Within First Year Of A Child’s Life, Adoption or Foster Care

  •  When Caring For A Sick Family Member
  •  When Caring For Children While A Spouse In The Military Is Deployed
Paid Family Leave Act New York State – How Will it affect Your Business
  • Amounts Of .126% Of Payroll Is Deducted For Premiums (Max- $85.00 Year
    • On a $380.00 Weekly Payroll You Deduct 48 Cents ($24.96 a year)
  • With Most Carriers Premiums Are Generally Paid Up Front In Advance
    • You lay It Out – And Collect Back Weekly – A bookkeeping Nightmar
  • When You Charge Each Employee The Estimated Annual Premium You Then Reconcile By Audit At Year End
    • You Will Need To Calculate Refunds And Overages And Make Refunds to Ex-Employees When They Leave
  • Non-Compliance Fine is 1% of Payroll Per Day Per Employee Not In Compliance
    • The Fine Is Charged To The Employer Not The Employee- Compliance Is The Employer’s Responsibility

These Are The Financial Effects, Small Employer May Have Staffing Adjustments As Well. Some Industries Will Not Have A Supply Of People Trained To Replace Employees Not Present For Relatively Short Durations. There May Not Be Enough Time To Cover The Cost Of Training Temporary Employees. The Employees Returning Must Be Offered Their Job, Or One Similar, They Are Not To Be Replaced.

Contact Us To see how we can help

Infinity Payroll Services has arranged with carriers to accept “PAY AS YOU GO” premiums for Worker’s Compensation, NYS Disability, and Paid Family Leave.

Premiums are paid by payroll deduction each pay period, the same as taxes are paid.

Premiums are withdrawn and remitted directly to the proper insurance carrier.
  • This works with all payroll schedules: weekly, bi-weekly, semi-monthly, or monthly.
  • There is no need to lay out premium in advance.
  • There is no need to refund to a former employee when they leave.

No Fines – Easy Auditing – No Accounting Nightmare Tracking Employees Funds

Available Only With New York State Licensed Insurance Companies That Accept “Pay As You Go”

We Will Work With Your Insurance Broker, Accountant or Attorney

Click Here for more information from NY.gov