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.