On September 1, 2020, the New York Department of Financial Services (NY DFS) published the 2021 New York Paid Family Leave (NY PFL) benefit and contribution rates. Although we knew that the benefit amounts would increase, the premium rate for employee contributions will almost double beginning January 1, 2021. Here are the highlights of the DFS announcement.
Summary of NY PFL Rates for 2021:
- Weeks of benefit entitlement: 12 weeks (up from 10 weeks in 2020)
- Benefit rate: 67% of the employee’s average weekly wage (up from 60% in 2020)
- Weekly benefit cap: $971.61 max/week (67% of the NY state average weekly wage of $1,450.17 for 2021 – up from $840.70 max/week in 2020)
- Premium rate: 0.511% (0.506% plus 0.005% for the Risk Adjustment for the Covid-19 claims paid under NY PFL law) (up from 0.270% of an employee’s wages each pay period in 2020)
- Premium cap/annual max employee contribution: $385.34 annually (up from $196.72 annually in 2020)
What is ReedGroup Doing?
ReedGroup will update its NY PFL plan offerings to reflect the new benefit and entitlement rates when they become effective on January 1, 2021. We will also make any necessary adjustments to the wording in our letters and notifications relating to NY PFL as well as updating offset amounts when NY PFL offsets are taken against concurrent company paid leave benefits.
ReedGroup has solutions for employers with 5000+ employees seeking assistance with absence management and compliance with state and federal leave laws. Let us know how we can help.
Information provided on this blog is intended for general educational use. It is not intended to provide legal advice. ReedGroup does not provide legal services. Consult an attorney for legal advice on this or any other topic.