All employers are required to do one of the following:
- Withhold employees’ premiums from their paychecks, OR
- Pay some or all of the employee share of premium on their employees’ behalf
Employers cannot collect missed premiums in later pay periods
For 2021, the Paid Leave premium is 0.4% of each employee’s gross wages (pre-tax wages, minus tips).
- Of this 0.4% of gross wages, employees pay 63.33%, and the employer pays the other 36.67%.
- Premiums are capped at the 2020 Social Security Wage Base of $137,700. (The Social Security cap for 2021 will be $142,800. This calculator will be updated to reflect that change on Dec. 30, 2020).
Businesses with fewer than 50 employees are not required to pay the employer portion of the premium, but they still must:
- Collect employee premiums, OR
- Pay employee premiums on their behalf
If you are using a voluntary plan for family or medical leave, your calculations may be different.