By Kelly Sprekelmeyer
On July 28, 2017, PlanSource HCM will offer new tax codes to help New York based employers comply with the new state-mandated leave program. This new ruling takes effect on January 1, 2018 and provides paid leave for employees to bond with new children, care for sick loved ones, or offer relief while a family member is on active military service. Here are some of the main points to consider when assessing the best way to comply:
Beginning January 1, 2018, employers must either:
- Deduct the new 0.126% paid family-leave tax from your employees’ wages, or
- Elect to pay the cost of paid family-leave premiums on behalf of your employees.
All full-time employees are eligible for an 8-week paid family leave benefit after having been employed for 26 weeks. The benefit increases to a 12-week leave in 2021.
From July 1 to December 31, 2017, you have the option to begin collecting the tax early so your employees become eligible for the benefit sooner. The tax cannot be retroactively collected for the optional timeframe.
Two new tax codes, below, will be deployed to your Database (if your company operates in NY), on Friday, July 28th. When deployed it will have a zero tax rate initially. This is because it will not be a mandatory withholding until 01/01/2018.
- Employee Portion (NYPFLEE)
- Paid by Employer (NYPFLEP)
If a company has NYSDIEE setup on the company and EE level, the update will:
- Auto add NYPLFEE to the Company Tax Setup – as a linked code to NY
- Auto add NYPLEE to the EE tax setup
Employers can begin deducting the 0.126% tax during the optional six-month window if they choose to do so.
If your company would like to begin deducting the 0.126% prior to 01/01/2018, please email the HCM Service team at email@example.com with your request.
Please Note: This communication is not intended as legal advice. Please review additional details regarding the new leave program here.