The State’s NEW Paid Family Leave Program has tax implications for New York employees, employers, and insurance carriers. This includes self-insured employers, employer plans, approved third-party insurers, and the State Insurance Fund. Please see the following guidance, based upon the state’s review:
• Benefits paid to employees will be taxable non-wage income that must be included in
federal gross income
• Taxes will not automatically be withheld from benefits; employees can request
voluntary tax withholding
• Premiums will be deducted from employees’ after-tax wages
• Employers should report employee contributions on Form W-2 using Box 14 – State
disability insurance taxes withheld
• Benefits should be reported by the State Insurance Fund on Form 1099-G and by all
other payers on Form 1099-MISC
Please contact us if you have any questions at (516)358-5600 or e-mail: adejohn@carriagetradeinsurance.com