New York Paid Family Leave

Description

NY Paid Family Leave is an extension of the NY State Disability Program.

The definitions of employment and employee are the same in the Workers' Compensation Law for disability and Paid Family Leave. If employees are not included in the disability policy, they won't be included in Paid Family Leave either.

Changes to Your Disability Benefits Policy

NYSIF notified disability benefits (DB) policyholders in April 2017 that PFL would be added to DB policies effective January 1, 2018. All employees of NYSIF DB policyholders are automatically covered for PFL under their NYSIF DB policies.

PFL is funded through employee payroll deductions. As an employer, you are responsible for collecting the appropriate PFL contributions to cover the cost of the program. You may begin employee payroll deductions for PFL on or after July 1, 2017.

2026 Paid Family Leave Rates

Employee contribution: 0.432% of gross wages per pay period

Maximum annual contribution: $411.91 (in 2026)

Payroll Deduction Calculator: https://paidfamilyleave.ny.gov/paid-family-leave-calculator

Setting Up PFL Withholding in ProPay

There is nothing to be entered in ProPay by the user for Paid Family Leave. The deduction is an automatic addition to the current Disability deduction.

Disabling PFL Withholding for Any Employer

If an employer is exempt from PFL:

Go to Employer > Employer Setup > Screen 3 (Tax Exemptions and Benefit Accruals).
In the SDI section, check the box labeled Employer is Exempt from this Tax.