Drake Accounting®: How do I set up New York paid family leave?
New York Paid Family Leave premiums will be deducted from each employee’s after-tax wages. The paid family leave can be called Family Leave SDI as long as it is a separate item in box 14.
State disability needs to be reported separately from the Paid Family Leave in box 14 of Form W-2.
Summary of setup:
- Confirm the client’s state is NY.
- Set the appropriate NY rates for Family Leave Rate and Family Leave Wage Base.
- Set up the NY paid family leave as a deduction.
- Assign the NY deduction to employees.
Detailed setup steps:
- Confirm that the client’s state is NY in Client > Edit > Contact Information.
- Set the appropriate state rates and limits for NY on the State Setup tab under Firm > Rates & Withholding Setup.
- If you have not previously entered this information, these fields display the 0.00 default setting.
- Once you have entered the correct information for NY, click Save.
Set up the Paid Family Leave
Set up the Paid Family Leave deduction at Employees > Deductions & Benefits. Click on the Deductions tab and click New to add the PFL as a deduction.
- Name – Enter the name of the deduction (such as "NY PFL").
- Account – Necessary if you are using the Bookkeeping function.
- Amount – Enter the same percentage as in the Family Leave Rate field on the Firm > Rates & Withholding Setup > State Setup.
- Ceiling – Enter the max amount for the deduction.
- Percent – Choose Percent in the Based on drop-list.
- As appropriate, make selections in the Deduct After Tax and Exempt From sections.
- Taxable settings must be determined by the preparer and the employer.
- Apply to – check items as applicable.
- WH Code – Choose Family Leave Insurance Plan Contrib. in the drop-list.
- Click Save to save changes.
- Exit the screen if you are done adding deductions.
Assigning NY PFL to Employees
- Assign the NY PFL deduction to employees on the Employees > Employee Setup > Deductions tab.
- Complete this step for each employee.
- Double-click or select the employee and click the Deductions tab. You will see the available deductions listed on the left column:
- Click the NY PFL line item and click the blue arrow button to bring over the default deduction for the employee.
- Verify the information is correct or edit as needed.
- Click Save.
For more information, see the Important Notice from New York's Department of Taxation and Finance and New York Paid Family Leave.
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