Notify employees about Paid Leave, and file reports and premiums, so workers and your business can stay healthy.
1. Notify your employees about the benefit
Under the law, you are required to inform your employees about the Paid Family and Medical Leave program by posting a notice in a place customarily used to post other employment-related notices. Please download, print and post the mandatory poster provided below. You may also want to share a paystub insert with employees to explain the withholding. Both documents are available in multiple languages.
Download the mandatory poster
Download the optional paystub insert
Do you have an employee who is taking time off for their health condition, or to care for a family member with a health condition? You must let the employee know they may qualify for Paid Family and Medical Leave. Use the notice created by the state. Send it to your employee within five business days of learning they had a qualifying event.
Optional: Provide additional benefits. Employers can provide additional benefits, also called “supplemental benefits,” to their employees on top of the state’s Paid Family and Medical Leave benefits. For example, you can offer employees additional time off to bond with a new baby, additional pay to replace wages lost while they are on leave, or job protection for people whose jobs are not automatically protected under the law.
2. Calculate and collect premiums
Paid Family and Medical Leave is funded by premiums paid by employees and employers. For 2020 and 2021, the Paid Family and Medical Leave premium is 0.4 percent of each employee’s gross wages, not including tips, up to the Social Security cap ($137,700 in 2020; $142,800 in 2021). This premium is divided between the employer and the employee as follows:
Employee premium (mandatory for all employees): In 2020, about ⅔ of the premium (63.33%) can be paid by the employee. Employers are required to either withhold this amount from each employee’s paycheck or pay it on their employees’ behalf. Employers then submit this portion of the premium to the state along with their quarterly reports.
Employer premium (mandatory for businesses with 50+ employees): About ⅓ of the premium (36.67%) is the employer’s share. If your business has 50 or more employees, you must pay the employer share of the premium. This is determined each September and takes effect the following January for that full calendar year. If you have fewer than 50 employees, the employer premium is optional. If your small business chooses to pay the employer share of the premium, you can receive additional benefits for your business.
All employers may either withhold employees’ premiums from their paychecks or pay some or all of the premium on their employees’ behalf. Employers cannot collect missed premiums in later pay periods.
3. Every quarter: Pay premiums and report hours and wages
Every quarter, all employers must complete and file a report and pay Paid Family and Medical Leave premiums. Here’s what your report should include:
- Basic details about your business and employees
- Each employee’s total hours worked, excluding tips
- Each employee’s total wages, including paid time off
Ready to complete your quarterly report?