Paid Family Leave: What Every Small Biz Owner Should Know
New York Paid Family Leave is insurance that may be partially funded by employees through payroll deductions. Most private employers with one or more employees are required to obtain Paid Family Leave insurance. It’s designed for employers to implement three key tasks of obtaining coverage; collecting employee contributions and completing the employer portion of a Paid Family Leave request from any employee.
Each year, the Department of Financial Services sets the employee contribution rate to match the cost of coverage.
This year, the employee contribution is 0.153% of an employee’s gross wages each pay period. The maximum annual contribution is $107.97. Paid Family Leave contributions are deducted from employees’ after-tax wages. Calculating such deductions can be a daunting task for most small businesses owners. This is especially so for those small businesses, who do not implement an automated payroll platform to manage these and other, employee-related deductions.
Using an automated platform such as Fingercheck, avoids not only the headache of managing it internally and exhausting internal resources but avoids costly errors. So before you receive a request for Paid Family Leave, think about having a platform do the work for you.