New York Disability and Paid Family Leave Requirements for Employers

Most New York employers must provide both disability (SDI) and Paid Family Leave (PFL) coverage. Employers buy a policy from an authorized private carrier or the NY State Insurance Fund, or self-insure with Workers' Compensation Board approval.

Who must provide coverage

Most employers in the state of New York (NY) are required to provide Disability and Paid Family Leave benefits coverage for their employees.

How to obtain coverage

• Employers obtain state disability insurance (SDI) coverage by purchasing an insurance policy through an authorized private carrier or the NY State Insurance Fund.
• Paid Family Leave (PFL) coverage is typically a rider on the disability insurance policy.
• Alternatively, employers may apply to the New York State Workers' Compensation Board for approval to administer benefits coverage as a self-insured employer.

Payroll deduction rates

Employers may withhold 0.5% of employees' wages, up to a maximum deduction of $0.60 per week, to offset the cost of SDI coverage.

PFL coverage is employee-funded at a rate set by the state each year. The 2024 contribution rate is 0.373% of gross wages, with a maximum annual deduction of $333.25.

Note: Employers may also choose to cover the entire cost of SDI and/or PFL coverage on behalf of their employees.

Important: The PFL rate and annual maximum above are the 2024 figures given in the source material. Confirm the current year's rate before applying it to payroll.

How CoAd handles NY SDI and PFL

NY SDI and PFL deductions are maintained on client- and employee-level tax screens and recorded in the tax sections of our reports. However, unlike other tax types, we do not impound these amounts or remit payment. Clients are responsible for remitting all premium payments to their insurance provider.

More information

http://www.wcb.ny.gov/content/main/coverage-requirements-db/

Frequently asked questions

Do New York employers have to provide disability and paid family leave coverage?

Yes. Most employers in the state of New York are required to provide Disability and Paid Family Leave benefits coverage for their employees.

How do I obtain New York SDI and PFL coverage?

Employers obtain state disability insurance coverage by purchasing an insurance policy through an authorized private carrier or the NY State Insurance Fund, and Paid Family Leave coverage is typically a rider on that disability policy. Alternatively, employers may apply to the New York State Workers' Compensation Board for approval to administer benefits coverage as a self-insured employer.

How much can be withheld from an employee's pay for New York SDI?

Employers may withhold 0.5% of an employee's wages, up to a maximum deduction of $0.60 per week, to offset the cost of SDI coverage.

How much is the New York PFL employee contribution?

PFL coverage is employee-funded at a rate set by the state each year. The 2024 contribution rate is 0.373% of gross wages, with a maximum annual deduction of $333.25, so confirm the current year's rate before applying it to payroll.

Does CoAd remit New York SDI and PFL premiums?

No. NY SDI and PFL deductions are maintained on client- and employee-level tax screens and recorded in the tax sections of our reports, but unlike other tax types these amounts are not impounded or remitted. Clients are responsible for remitting all premium payments to their insurance provider.