As you may already know, on April 3rd, 2020 NYS signed into law that large employers with 100 or more employees can accumulate 56 hours of paid sick leave per year and small employers with 5-99 employees can accumulate 40 hours of paid sick leave per year. Regardless of a business’ size or income, employees accrue 1 hour of paid sick leave for every 30 hours worked. New York Paid Family Leave is insurance that is funded by employees through payroll deductions. In 2021, the contribution rate is 0.511% of an employee’s gross wages each pay period. This is an increase from last year. The maximum annual contribution is $385.34.
Beginning on January 1, 2021, employees may use their paid sick leave as they accumulate. Employees who use their paid sick leave will be paid their regular rate and can also carry over any unused time. If you are an employer, be sure to keep records of accrued paid sick leave. Eligible employees have access to up to 12 weeks of job protected, paid time off to care for a new child, care for a family member with COVID-19 or another serious health condition, or to even assist loved ones when a family member is deployed abroad on active military service. Employees may use this time all at once, or in increments of full days.
Employees who choose to take Paid Family Leave will receive 67% of their average weekly wage, up to a maximum of 67% of the current Statewide Average Weekly Wage of $1,450.17. The maximum weekly benefit for 2021 is $971.61.
If you have any questions regarding NYS Paid Family Leave, please contact Gleason Tax Advisory.
