Delaware Paid Family and Medical Leave Insurance

Delaware Paid Family and Medical Leave (FMLI) program is intended to provide employees working in Delaware paid time off to care for themselves or a family member.

This tax uses these components.

• Family Leave Insurance employee

• Family Leave Insurance employer

• Medical Leave Insurance employee

• Medical Leave Insurance employer

• Parental Leave Insurance employee

• Parental Leave Insurance employer

Before you implement Delaware FMLI, there are some areas you should consider.

• What is the employee eligibility criteria

• How to override the legislative rates and percentages

• How to reclassify employees

• How to opt out your organization

• How to exclude individual employees

• How to cost the tax

• What wage basis rules it follows

What is the employee eligibility criteria

To be eligible for the Delaware FMLI tax, an employee must have:

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

2. Delaware identified as one of the following.

   • Family leave insurance (FLI) state on the person's Tax Jurisdictions card

   • State unemployment insurance (SUI) state on their Tax Withholding card (if FLI state is undefined)

How to override legislative rates and percentages

To override the legislative tax rates and percentage distribution between the employee and employer components:

1. To override at the payroll statutory unit (PSU) level, start the Legal Entity Calculation Cards task from your implementation project.

   To override at the TRU level, start the Legal Reporting Unit Calculation Cards task.

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

2. Open the calculation card for editing.

3. In Component Groups, click Delaware.

4. In Calculation Components, select State FLI.

   Create it if it doesn't exist.

5. Select Enterable Calculation Values on Calculation Cards.

6. Click Create.

7. To override the total tax rate, search for and select FLI Combined Rate.

   To override the annual wage limit of the tax, search for and select Wage Limit.

   To override the distribution between the employee and employer rates, use these calculation value pairs.

   • FLI Employee Percentage and FLI Employer Percentage

   • MLI Employee Percentage and MLI Employer Percentage

   • PLI Employee Percentage and PLI Employer Percentage

   Enter them as percentages. For example, enter 50% as 50. The sum of these percentage pairs must equal 100%.

   The percentages must be the same for all three calculation value pairs.

8. Save your work.

How to reclassify all employees in your organization

You can change FMLI classification at the beginning of the quarter only.

By default, earnings tagged to other work states aren't eligible for Delaware FMLI. To make them eligible for all employees in your organization:

1. To make them eligible at the PSU level, start the Legal Entity Calculation Cards task from your implementation project.

   To make them eligible at the TRU level, start the Legal Reporting Unit Calculation Cards task.

2. Open the calculation card for editing.

3. In Component Groups, click Delaware.

4. In Calculation Components, select State FLI.

   Create it if it doesn't exist.

5. Select Enterable Calculation Values on Calculation Cards.

6. Click Create.

7. Search for and select Family Leave Reclassification.

8. Enter Yes to make all out-of-state earnings eligible.

   Enter No to revoke that eligibility.

9. Save your work.

How to reclassify individual employees

You can change FMLI classification at the beginning of the quarter only.

To make all out-of-state earnings for an individual employee eligibile for FMLI:

1. Open the person's tax card for editing.

2. Open the Delaware component for editing.

3. In Withholding Exemption, set Family Leave Reclassification to either Yes or No.

4. Save your work.

How to opt out your organization

You can opt out your organization from the employee and employer components of these taxes.

1. To opt out at the PSU level, start the Legal Entity Calculation Cards task from your implementation project.

   To opt out at the TRU level, start the Legal Reporting Unit Calculation Cards task.

2. Open the calculation card for editing.

3. In Component Groups, click Delaware.

4. In Calculation Components, select State FLI.

   Create it if it doesn't exist.

5. Select Enterable Calculation Values on Calculation Cards.

6. Search for and select the appropriate calculation value.

   • FLI Employee Tax Exemption

   • FLI Employer Tax Exemption

   • MLI Employee Tax Exemption

   • MLI Employer Tax Exemption

   • PLI Employee Tax Exemption

   • PLI Employer Tax Exemption

7. In Value, select the appropriate exemption status.

How to opt out individual employees

To exclude individual employees from all six components of this tax:

1. Open the person's tax card for editing.

2. Open the Delaware component for editing.

3. In Withholding Exemption, select the appropriate exemption for Family Leave.

4. Save your work.

How to cost the FMLI taxes

To process the FMLI taxes, cost these predefined elements using the FLI Tax Calculated or Tax Calculated input values.

• Family Leave Insurance Employee Tax

• Family Leave Insurance Employee Tax Not Taken

• Family Leave Insurance Employer

• Medical Leave Insurance Employee

• Medical Leave Insurance Employee Not Taken

• Medical Leave Insurance Employer

• Parental Leave Insurance Employee Tax

• Parental Leave Insurance Employee Tax Not Taken

• Parental Leave Insurance Employer

What wage basis rules it follows

When configuring the wage basis rules for Delaware FMLI, find them under State FLI in the Component Group Rules task.