How to exempt an employee from the New York Paid Family Leave deduction

New York Family Leave Insurance (NY FLI) is deducted automatically from any employee with wages earned in New York. To stop it for an employee who does not qualify, claim the exemption on that employee's payroll profile.

Who the NY FLI deduction applies to

• NY FLI is deducted automatically from employees who have wages earned in New York.
• It does not apply to New York residents who work outside the state of New York.
• Any employee who does not qualify for the deduction must be exempted from their payroll profile.

How to exempt an employee

1. Open the person's employee profile, either by typing and selecting their name in the Universal Search bar, or by navigating to More and selecting People under the HR menu.
2. From the slide-out page, click the chevron icon and select Payroll Profile under the Profile menu.
3. Under the State and Local Tax section, locate the New York Family Leave Benefits tax and click the Details link.
4. Click Edit.
5. On the Edit Tax Election page, select either Update or Correct (see the table below).
6. In the Start field, enter the effective date of the NY FLI deduction exemption.
7. Check the Claim Exemption box.
8. Check the box to the confirmation message.
9. Click Submit.

Update or Correct: which to choose

Frequently asked questions

Who has New York Family Leave Insurance deducted from their pay?

NY FLI is automatically deducted from employees who have wages earned in New York. It does not apply to New York residents who work outside of the state of New York.

How do I stop the NY FLI deduction for an employee who does not qualify?

Open the employee's Payroll Profile, locate the New York Family Leave Benefits tax under the State and Local Tax section, and click the Details link, then Edit. On the Edit Tax Election page, enter the effective date of the exemption in the Start field, check the Claim Exemption box, check the box for the confirmation message, and click Submit.

Should I choose Update or Correct on the Edit Tax Election page?

Choose Update when you are adding a new record — for example, the employee was subject to the NY FLI tax but you want to change this starting with a new date. Choose Correct if incorrect information was added and you want to erase the previous record; in that case, enter the original effective date of the record in the Start field.

Where do I find an employee's payroll profile?

Access the employee profile either by typing and selecting their name from the Universal Search bar, or by navigating to More and selecting People under the HR menu. From the slide-out page, click the chevron icon and select Payroll Profile under the Profile menu.