New York Paid Family Leave: 0.432% of wages in 2026
In effectChecked November 8, 2026Run by New York State Workers’ Compensation Board (runs Paid Family Leave) and Department of Financial Services (DFS, sets the premium)
Short answer
Most New York private employers with one or more employees must carry Paid Family Leave (PFL) insurance, usually as a rider on their required disability benefits policy, and fund it with payroll deductions from employees. The deduction is 0.432% of gross wages in 2026, up to $411.91 a year, and the Department of Financial Services (DFS) has set it at 0.452% for 2027, up to $451.81. Employees can take up to 12 weeks of job-protected leave at 67% of their average weekly wage, up to a state cap.
Next date: January 1, 2027: 2027 Paid Family Leave deduction takes effect: 0.452% of gross wages, up to $451.81 a year. The maximum weekly benefit rises to $1,287.91.
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What changed recently
· Rate announced
New York Paid Family Leave rises to 0.452% of wages for 2027
The New York Department of Financial Services (DFS) set the 2027 Paid Family Leave premium at 0.452% of an employee’s wages, up from 0.432% in 2026, with a maximum of $451.81 per employee for the year. Employers deduct it from employees’ pay unless they choose to cover it.
- Premium, share of wages
- 0.432%
- Most you may deduct from employees
- 0.432%
- Employer pays at least
- 0%
- Wages subject to premium, per employee
- $95,348.76
- 2027 premium
- 0.452%
2027 rate: announced.
New York Paid Family Leave premium calculator
In 2026, New York Paid Family Leave premiums are 0.432% of each employee’s wages up to $95,348.76 a year. Employers may deduct all of it from pay.
- Total premium a year
- $216.00
- Most you may deduct from employees
- $216.00
- Employer pays at least
- $0.00
Assumes the full employee share is deducted.
New York Paid Family Leave deadlines
· Paid leave
2027 Paid Family Leave deduction takes effect: 0.452% of gross wages, up to $451.81 a year
The maximum weekly benefit rises to $1,287.91.
Dates already passed (3)
- : The Department of Financial Services (DFS) issues its decision setting the 2027 Paid Family Leave premium at 0.452% of wages, up to $451.81 a year.
- : 2026 Paid Family Leave deduction takes effect: 0.432% of gross wages, up to $411.91 a year. The maximum weekly benefit is $1,228.53.
- : New York’s Paid Family Leave program began providing benefits.
What employers have to do
- Get Paid Family Leave (PFL) coverage, usually as a rider on your disability benefits (DBL) policy, from an insurer licensed by the Department of Financial Services (DFS) or from the New York State Insurance Fund (NYSIF), or self-insure with Workers’ Compensation Board approval. Coverage can’t lapse, even when you switch insurers.
- Post the notices of coverage your insurer provides: Form PFL-120 for Paid Family Leave and Form DB-120 for disability benefits.
- Put Paid Family Leave information, including how to request leave, in your employee handbook or other written materials.
- Offer the PFL waiver form to employees who won’t meet the eligibility minimum, and keep signed waivers on file.
- Deduct 0.432% of gross wages in 2026 (0.452% in 2027) after taxes, stop at the annual cap, and use the deductions to pay the PFL premium. Report them in Box 14 of each employee’s W-2 (the annual wage and tax statement).
- Complete Part B (employer information) of Form PFL-1 when an employee requests leave, and restore the employee to the same or a comparable job afterward.
Handling New York Paid Family Leave in payroll
No state registration: buy coverage or self-insure
New York has no state plan to register with. Coverage comes from an insurer licensed by the Department of Financial Services (DFS) or from the New York State Insurance Fund (NYSIF), usually as a rider on your disability benefits (DBL) policy, or you can self-insure with Workers’ Compensation Board approval. Details from New York State Workers’ Compensation Board (runs Paid Family Leave) and Department of Financial Services (DFS, sets the premium). You’ll still need your payroll to figure the premium on each paycheck and withhold any employee share.
Payroll systems with a help document covering New York Paid Family Leave
| System | What the documentation says | Link |
|---|---|---|
| Gusto | New York tax article explains setting up Paid Family Leave deductions in Gusto; Gusto deducts the employee share and leaves it in the company bank account for the employer to pay its insurance carrier. Read their help doc, Nov 8, 2026 | See plans for Gusto |
| Patriot Software | New York tax list marks the employee Paid Family Leave premium as calculated only, with insurance filed by the employer. Read their help doc, Nov 8, 2026 | See plans for Patriot Software |
| QuickBooks Payroll | Help article explains adding the New York PFL employee deduction; it says Intuit does not pay the insurer, so the employer pays its carrier directly. Read their help doc, Nov 7, 2026 | See plans for QuickBooks Payroll |
| Square Payroll | New York tax article says Square Payroll withholds employee Paid Family Leave contributions and leaves them in the employer’s bank account to pay its carrier. Read their help doc, Nov 7, 2026 | See plans for Square Payroll |
Listed alphabetically. We may earn a commission from these links; it never decides who’s listed.
How New York Paid Family Leave works
Employees pay for Paid Family Leave (PFL) through after-tax payroll deductions: 0.432% of gross wages each pay period in 2026, stopping at $411.91 for the year, and 0.452% in 2027, stopping at $451.81. Employees earning at or above the New York State Average Weekly Wage (NYSAWW), $1,833.63 a week for 2026 and $1,922.25 for 2027, reach the cap; others pay less. Commissions and bonuses count as wages. Employers may choose to cover the cost themselves. The disability benefits (DBL) policy that PFL usually rides on is a separate deduction: employers may take up to 0.5% of wages, but no more than 60 cents a week.
Paid Family Leave (PFL) is designed to be paid by employees: the Department of Financial Services (DFS) sets the premium rate and the maximum employee deduction at the same level, so deductions of up to $411.91 per employee in 2026 ($451.81 in 2027) fund the policy unless you choose to pay it yourself. The disability benefits (DBL) policy is a separate employer cost, toward which employees can be charged no more than 60 cents a week.
Up to 12 weeks of Paid Family Leave (PFL) in any 52-week period to bond with a new child, care for a family member with a serious health condition, or help when a family member is called to active military service abroad. It pays 67% of the employee’s average weekly wage, up to $1,228.53 a week in 2026 and $1,287.91 in 2027, and can be taken all at once or in full days. Employees return to the same or a comparable job and keep their health insurance on the same terms during leave. New York’s separate disability benefits (DBL) pay 50% of wages, up to $170 a week, for up to 26 weeks of an illness or injury that isn’t work-related; DBL and PFL together can’t exceed 26 weeks in a 52-week period.
Questions employers ask
Who has to follow New York Paid Family Leave?
Most private employers with one or more employees. Under Workers’ Compensation Law § 202, an employer with one or more employees on at least 30 days in a calendar year becomes covered four weeks after the 30th day of employment. A household employer is covered four weeks after hiring a personal or domestic employee who works at least 20 hours a week on at least 30 days in a calendar year. Public employers, self-employed people and out-of-state employers follow separate rules.
How do employers get an exemption from New York Paid Family Leave?
Employees, not employers, can be exempt. An employee who won’t meet the eligibility minimum must be offered the Paid Family Leave (PFL) waiver form: someone regularly scheduled under 20 hours a week who won’t work 175 days in a year, or someone scheduled 20 or more hours a week who won’t be employed for 26 consecutive weeks. An employee who signs the waiver pays no PFL deductions and can’t get PFL benefits. The waiver is revoked automatically if the schedule changes so the employee will meet the minimum, and the employer may then collect deductions back to the date the waiver was signed.
What happens if an employer doesn’t comply?
Not carrying the required disability and Paid Family Leave (PFL) coverage can bring a Workers’ Compensation Board penalty of up to 0.5% of payroll for the period without coverage, plus up to $500 for each period of noncompliance (Workers’ Compensation Law § 220(2)). It is also a misdemeanor punishable by a $100 to $500 fine, up to one year in jail, or both, with fines of $250 to $1,250 for a second violation within five years and up to $2,500 after that (§ 220(1)). The employer also owes the cost of any claims paid during the gap, or 1% of payroll for that period if greater (§ 213(1)). Sole proprietors, partners and a corporation’s president, secretary and treasurer can be held personally liable. If an employer doesn’t reinstate an employee after PFL, a Board judge can order reinstatement, lost wages, attorney’s fees and up to $500 in penalties.
Can employers use a private plan instead?
There is no state plan to opt out of: coverage always comes from an insurer licensed by the Department of Financial Services (DFS), the New York State Insurance Fund (NYSIF), or Workers’ Compensation Board-approved self-insurance. Employers can add more generous benefits, such as longer leave or higher pay; for insured or self-insured plans the Workers’ Compensation Board reviews them to confirm they are at least as favorable as the law requires.
Everything employers in New York must do ·Paid leave in every state
Sources
- N.Y. Workers’ Compensation Law, Article 9 (§ 200 and following), including §§ 202, 209, 213 and 220; N.Y. Insurance Law § 4235(n)(1)
- New York’s Paid Family Leave Program (April 2023 report: the program began providing benefits on January 1, 2018), Office of the New York State Comptroller (read Nov 8, 2026)
- Decision on Premium Rate for Paid Family Leave Benefits and Maximum Employee Contribution for Coverage Beginning January 1, 2026 (dated August 29, 2025), New York State Department of Financial Services (read Nov 7, 2026)
- Decision on Premium Rate for Paid Family Leave Benefits and Maximum Employee Contribution for Coverage Beginning January 1, 2027 (dated August 31, 2026), New York State Department of Financial Services (read Nov 7, 2026)
- New York Paid Family Leave Updates for 2026 (NYSAWW, maximum benefit and contribution), New York State Paid Family Leave (Workers’ Compensation Board) (read Nov 7, 2026)
- New York Paid Family Leave Updates for 2027 (NYSAWW, maximum benefit and contribution, construction eligibility), New York State Paid Family Leave (Workers’ Compensation Board) (read Nov 7, 2026)
- Cost and Deductions (after-tax deductions, employer may pay, waivers, W-2 Box 14), New York State Paid Family Leave (Workers’ Compensation Board) (read Nov 7, 2026)
- Employer Responsibilities and Resources (coverage, notice, waivers, reinstatement, discrimination penalties), New York State Paid Family Leave (Workers’ Compensation Board) (read Nov 7, 2026)
- Obtaining and Funding a Policy (rider, enhanced benefits), New York State Paid Family Leave (Workers’ Compensation Board) (read Nov 7, 2026)
- Disability Benefits and Paid Family Leave Insurance (ways to obtain, DBL deduction of 0.5% up to 60 cents a week), New York State Workers’ Compensation Board (read Nov 7, 2026)
- Disability Benefits: Employers’ Rights and Responsibilities (DB-120 and PFL-120 notices), New York State Workers’ Compensation Board (read Nov 7, 2026)
- What are Disability Benefits ($170 weekly maximum, 26 weeks), New York State Workers’ Compensation Board (read Nov 7, 2026)
- Penalties for Not Having Disability and Paid Family Leave Benefits Coverage, New York State Workers’ Compensation Board (read Nov 7, 2026)
- Workers’ Compensation Law § 202, Covered employer, New York State Senate (read Nov 8, 2026)