New York Paid Family Leave, commonly called NY PFL, gives eligible employees paid, job-protected leave for qualifying family needs. For employers, it also creates important payroll responsibilities involving employee deductions, insurance coverage, recordkeeping, notices, and leave administration.
For 2026, the New York Paid Family Leave employee contribution rate is 0.432% of gross wages, subject to a maximum annual employee contribution of $411.91.
The New York State Average Weekly Wage used for 2026 is $1,833.63. Eligible employees can receive up to 12 weeks of Paid Family Leave, with benefits equal to 67% of their average weekly wage, subject to the state maximum of $1,228.53 per week.
Employers should understand that New York PFL is not handled like New York unemployment insurance or state income tax withholding.
PFL is primarily an insurance program funded through payroll deductions from covered employees. Employers generally secure coverage through an approved insurance carrier, the New York State Insurance Fund, or approved self-insurance.
What Is New York Paid Family Leave?
New York Paid Family Leave is a state-mandated insurance program that provides eligible employees with paid time away from work for certain family-related events.
Employees may use Paid Family Leave to bond with a newly born, adopted, or fostered child, care for an eligible family member with a serious health condition, or assist family members when a spouse, domestic partner, child, or parent is deployed abroad on active military service.
Paid Family Leave also provides job protection. In general, an employee who returns from qualifying PFL must be restored to the same position or a comparable position with comparable employment benefits.
Health insurance must also continue under the applicable rules while the employee is on leave.
Although employers often search for terms such as "New York PFL tax" or "NY Paid Family Leave tax," the contribution is more accurately described as an employee payroll deduction used to fund Paid Family Leave insurance.
Who Must Pay New York Paid Family Leave?
New York Paid Family Leave is generally employee-funded.
For 2026, employers may deduct the required PFL contribution from covered employees' wages. Employers are responsible for calculating the deduction correctly, applying the annual contribution limit, maintaining required coverage, and handling the deduction through payroll.
An employer may choose to cover some or all of the cost itself rather than collecting the full permitted employee contribution. The state does not require employers to shift the entire cost to employees.
This means employers should distinguish between two separate responsibilities:
| Responsibility | Employer or Employee |
|---|---|
| Funding the standard PFL contribution | Generally employee |
| Calculating payroll deduction | Employer |
| Withholding contribution from payroll | Employer |
| Maintaining required PFL insurance | Employer |
| Paying insurance premiums to carrier | Employer |
| Administering employee leave requests | Employer and insurance carrier |
Who Is Subject to New York Paid Family Leave?
Virtually all private employers that are required to provide New York statutory disability benefits coverage must also maintain Paid Family Leave coverage.
Under New York Workers' Compensation Law, an employer generally becomes a covered employer after having one or more employees working in New York on at least 30 days during a calendar year.
Those days do not have to be consecutive. Coverage generally becomes required after the applicable statutory waiting period.
Full-time and part-time employees may be covered.
An employee who regularly works 20 or more hours per week generally becomes eligible for Paid Family Leave after 26 consecutive weeks of employment.
An employee who regularly works fewer than 20 hours per week generally becomes eligible after working 175 days for the employer.
Citizenship and immigration status do not determine PFL eligibility.
New York Paid Family Leave Tax Rate for 2026
The New York Paid Family Leave contribution rate for 2026 is:
0.432% of an employee's gross wages per pay period
The maximum amount that may generally be collected from an employee during 2026 is:
$411.91 for the year
The rate applies beginning January 1, 2026.
2026 New York PFL Rate Summary
| 2026 PFL Item | Amount |
|---|---|
| Employee contribution rate | 0.432% |
| Maximum annual employee contribution | $411.91 |
| New York State Average Weekly Wage | $1,833.63 |
| Maximum weekly PFL benefit | $1,228.53 |
| Maximum leave | 12 weeks |
| Benefit percentage | 67% of average weekly wage, subject to cap |
The maximum weekly benefit of $1,228.53 is 67% of the 2026 New York State Average Weekly Wage of $1,833.63.
New York PFL Taxable Wage Base and Wage Limit
New York does not describe PFL using a traditional taxable wage base in the same way it does for unemployment insurance.
Instead, the employee contribution is calculated as 0.432% of wages, subject to the $411.91 annual employee contribution cap.
The 2026 New York State Average Weekly Wage is $1,833.63. Multiplying that amount by 52 weeks gives annualized wages of approximately $95,348.76.
At the 0.432% rate, contributions on that level of wages reach approximately the $411.91 annual maximum.
Employers should therefore configure payroll around the official annual contribution cap, rather than treating $95,348.76 as a separately published statutory PFL taxable wage base.
Employer vs Employee Contribution
New York PFL is primarily designed as an employee-funded benefit.
Employers may deduct the state-authorized contribution from employee wages. However, an employer can choose to pay part or all of the cost itself.
The employer remains responsible for securing the required insurance policy even when employees fund the premium through payroll deductions.
Employers should also avoid collecting more from employees than permitted under state rules. Excess employee contributions may need to be returned.
How to Calculate New York Paid Family Leave
The payroll calculation is straightforward for most employees.
First determine the employee's gross wages for the pay period. Multiply those wages by the 2026 PFL rate of 0.432%.
Continue withholding the applicable amount each payroll until the employee reaches the $411.91 annual maximum.
Once the employee reaches the annual cap, additional PFL deductions should generally stop for that calendar year.
New York Paid Family Leave Calculation Formula
The basic 2026 calculation is:
PFL Contribution = Gross Wages × 0.00432
The annual employee contribution cannot exceed:
$411.91
For payroll purposes:
Employee PFL Deduction = Lesser of 0.432% of applicable wages or the employee's remaining annual PFL contribution limit
This second formula is useful for employees approaching the $411.91 annual maximum.
Practical New York PFL Payroll Calculation Example
Assume an employee earns $2,500 every two weeks.
The calculation would be:
$2,500 × 0.432% = $10.80
The employee's PFL deduction for that payroll would therefore be $10.80.
If the employee earned $2,500 for all 26 biweekly payroll periods, the calculated annual deduction before applying the cap would be:
$10.80 × 26 = $280.80
Because $280.80 is below the 2026 annual maximum of $411.91, the full calculated amount could be deducted throughout the year.
Now consider a higher-paid employee earning $5,000 biweekly.
$5,000 × 0.432% = $21.60 per payroll
If that employee received 26 equal payrolls:
$21.60 × 26 = $561.60
The employer would not deduct the full $561.60. Payroll should stop PFL deductions once the employee reaches the $411.91 annual maximum.
This is why annual contribution tracking is important, especially for higher-paid employees.
Is There a New Employer PFL Rate in New York?
No separate "new employer PFL rate" applies in the same way that a new employer unemployment insurance rate may apply.
The 0.432% employee contribution rate for 2026 applies under the statewide PFL contribution rules.
An employer's actual insurance billing may depend on its carrier, coverage structure, and other policy factors, but employers should not replace the state employee contribution rate with an employer-specific insurance premium rate when calculating employee payroll deductions.
New York PFL Employer Registration Requirements
There is no separate New York PFL payroll tax registration comparable to registering for unemployment insurance or withholding tax.
Instead, covered employers must secure the required Disability Benefits and Paid Family Leave insurance coverage.
Employers can generally obtain coverage through:
An insurance carrier authorized to provide coverage in New York.
The New York State Insurance Fund, commonly called NYSIF.
Approved self-insurance for employers that qualify.
New York generally provides PFL as a rider to the employer's statutory disability benefits policy.
Employers should make sure there is no gap in coverage when changing insurance carriers.
Required New York Paid Family Leave Forms
Several forms may be relevant depending on the employer and employee situation.
Form PFL-1, Request for Paid Family Leave
Form PFL-1 is the primary employee request form for Paid Family Leave.
Part of the form is completed by the employee and part by the employer. After receiving the employee's form, the employer is generally required to return its completed portion within three business days.
Additional forms may be required depending on whether the leave is for bonding, family care, or a military-related qualifying event.
PFL Waiver
Employees who meet specific eligibility conditions may sign a Paid Family Leave waiver.
The employer should keep the completed waiver on file.
Form PFL-120
Employers are generally required to post the Notice of Compliance for Paid Family Leave, Form PFL-120, at the workplace.
The form is normally obtained from the employer's insurance carrier.
Disability and PFL Coverage Documentation
Because PFL is connected with New York statutory disability coverage, employers may also encounter forms such as DB-120 or other proof-of-coverage documents depending on their insurance arrangement.
New York PFL Filing Requirements
New York PFL should not be confused with New York unemployment insurance reporting.
Employers do not generally report the standard employee PFL contribution as a separate payroll tax on Form NYS-45.
Instead, employers maintain PFL coverage through an approved insurer or self-insurance arrangement, collect authorized employee payroll deductions, keep appropriate payroll records, and follow their insurance carrier's premium and reporting procedures.
Employee claims are generally submitted to the employer's PFL insurance carrier rather than being filed as a quarterly payroll tax return with the New York Department of Taxation and Finance.
Filing and Payment Frequency
There is no single statewide quarterly PFL tax payment schedule that works like unemployment insurance or state withholding tax.
Employee PFL deductions are normally calculated each payroll period.
The employer then pays premiums according to the billing or payment arrangement established with its insurance carrier, NYSIF, or approved self-insurance program.
Because carrier billing schedules can differ, employers should follow the due dates stated in their PFL insurance policy or carrier invoice rather than assuming that quarterly NYS-45 deadlines apply.
Important New York PFL Due Dates
Employers should pay attention to several PFL timing requirements.
The updated 2026 contribution rate became effective January 1, 2026.
When an employee submits Form PFL-1 to the employer, the employer generally has three business days to complete its portion and return the form.
Employees should submit the completed claim package to the employer's insurance carrier within 30 days after the start of leave to avoid risking the loss of benefits.
In most cases, the insurance carrier must pay or deny a completed claim within 18 calendar days after receiving the completed request or after the first day of leave, whichever is later.
Employers must also maintain continuous insurance coverage. There should not be a gap in required DB/PFL coverage simply because an employer changes insurance carriers.
New York Paid Family Leave Exemptions and Special Rules
Paid Family Leave is mandatory for most employees who are covered under the law, but certain workers may qualify to waive coverage.
An employee can generally qualify for a waiver when the employee:
Regularly works 20 or more hours per week but will not work for the employer for 26 consecutive weeks.
Or regularly works fewer than 20 hours per week and will not work 175 days during a 52-week period.
An employer should provide the waiver option when the employee qualifies.
If the employee signs a valid waiver, the employee does not make PFL contributions and is not eligible for PFL benefits while the waiver remains valid.
If the employee's schedule later changes so that the employee will satisfy the eligibility requirement, the waiver can be revoked. State rules may also allow the employer to collect applicable retroactive contributions.
Certain owners, partners, public employers, and other classifications may also have different coverage rules.
For example, members and partners of partnerships, LLCs, and LLPs are generally not treated as employees for mandatory PFL coverage purposes, although voluntary coverage may be available.
New York PFL Rules for Remote and Out-of-State Employees
Remote work creates an important New York PFL compliance question because residency alone does not always determine coverage.
An out-of-state employer may need New York Disability Benefits and Paid Family Leave coverage when an employee's work is localized in New York.
Work is generally considered localized in New York when it is performed entirely within the state or when work performed outside New York is only temporary, incidental, or isolated.
If work is not localized in one state, New York may also consider factors such as the employee's base of operations, where the employee's work is directed or controlled, and in certain situations the employee's residence.
However, simply living in New York does not automatically create PFL coverage.
For example, an employee who lives in New York but regularly commutes to an employer's workplace outside New York generally does not create a New York PFL coverage requirement solely because of New York residency.
Employers with remote employees should therefore review where the employee actually works rather than relying only on the employee's home address.
Common New York PFL Payroll Mistakes Employers Should Avoid
One common mistake is treating PFL as if it were New York unemployment insurance and trying to apply unemployment tax wage base rules to the deduction.
Another is continuing to deduct PFL after an employee reaches the $411.91 annual maximum for 2026.
Employers should also avoid using an outdated PFL percentage. The contribution rate can change annually, so payroll systems should be updated before the first payroll affected by the new calendar year's rate.
A further mistake is failing to stop deductions for an employee who has properly completed a valid PFL waiver.
Employers should also be careful when employees have unusual schedules, multiple jobs, midyear payroll changes, or remote work arrangements.
Finally, payroll deductions do not replace the employer's insurance responsibility. Collecting PFL from employees without maintaining valid statutory coverage does not satisfy New York's coverage requirements.
Penalties and Interest for Late Filing or Payment
Because New York PFL is insurance-based rather than a traditional quarterly payroll tax, there is no standard PFL late-payment interest schedule equivalent to a late state withholding or unemployment tax return.
The more serious compliance risk is failing to maintain required Disability Benefits and Paid Family Leave coverage.
Under New York Workers' Compensation Law Section 220, failure to secure required coverage may result in a penalty of up to 0.5% of the employer's payroll during the period of noncompliance, plus up to $500 for each period of noncompliance.
Failure to secure required coverage may also constitute a misdemeanor. The Workers' Compensation Board states that a first violation may carry a fine ranging from $100 to $500, imprisonment for up to one year, or both. Higher fines can apply to repeated violations.
An uninsured employer may also become responsible for claims arising during the period when required coverage was missing.
Employers should therefore treat continuous PFL insurance coverage as a core payroll and HR compliance responsibility.
How PayDay Can Help Employers Manage New York Paid Family Leave
Managing New York Paid Family Leave requires payroll teams to apply the correct annual rate, calculate deductions consistently, track employee year-to-date contributions, and stop deductions when the annual maximum is reached.
PayDay payroll software can help employers automate payroll calculations and employee deductions based on configured payroll rules. It can also support payroll records, reporting workflows, and year-to-date contribution tracking that help HR and payroll teams manage PFL alongside other New York payroll obligations.
For employers with employees in different states, organized payroll configuration is especially useful because Paid Family Leave rates, wage limits, contribution rules, and reporting requirements may differ by jurisdiction.
Payroll software does not replace an employer's responsibility to maintain required New York PFL insurance or make legal coverage decisions, but it can reduce manual payroll work and help employers follow consistent deduction and reporting processes.
