New York Family Leave Insurance

The New York Paid Family Leave Insurance (FLI) program is intended to provide a period for workers to:

• Bond with their newborn or newly adopted child

• Provide care for a seriously ill family member

• Spend time with military spouse, child, domestic partner, or parent before their deployment

Deductions taken from employee's wages fund the FLI plan. FLI coverage is included under the required disability plan.

The payroll process automatically reports employee contributions on form W-2 using Box 14. For further info, see Configure the Form W-2 in the Help Center.

Before you implement New York FLI, there are some issues you need to consider.

• What are the employee eligibility criteria

• How to begin FLI withholding

• How to exclude individual employees

• How to cost FLI taxes

For further info, see the following sections.

Employee Eligibility Criteria

To be eligible for the New York FLI tax, an employee must:

1. Have a valid tax card with a tax reporting unit (TRU) association

2. Have New York identified as their state disability insurance (SDI) state on the tax card

Withholding for Eligible Employees

NY FLI tax isn't automatically withheld. The NY State Disability calculation component enables this deduction at the payroll statutory unit (PSU) and TRU levels.

To begin withholding:

1. Start the Legal Entity Calculation Cards task to enable this tax at the PSU level.

   Start the Legal Reporting Unit Calculation Cards task to enable this tax at the TRU level.

   Settings at the TRU level override those at the PSU level.

2. In Component Groups, select New York.

3. In Calculation Components, select State Disability.

   Create it if it doesn't already exist.

4. Select Enterable Calculation Values on the Calculation Card.

5. Click Create, and select Exempt from Family Leave Insurance.

6. In Value, enter No if your organization deducts this tax for your New York employees.

   Enter Yes if your organization doesn't.

7. Save your work.

Exclude Individual Employees

To exclude individual employees from this tax:

1. From My Client Groups, click Payroll.

2. Click Calculation Cards.

3. Search for and select the person.

4. Open their Tax Withholding card for editing.

5. In Withholding Exemption, select Yes for Exempt from Family Leave Insurance.

6. Save your work.

Cost the FLI Taxes

To process FLI taxes, cost these predefined elements using the FLI Tax Calculated input value.

• Family Leave Insurance Employee Tax

• Family Leave Insurance Employee Tax Not Taken

For further info, see Payroll Costing of Elements for the US in the Help Center.