Background

In 2016, New York passed a law giving NY employees up to 12 weeks of paid family leave.

New York Paid Family Leave is insurance that is funded by employees through payroll deductions. Each year, the Department of Financial Services sets the employee contribution rate to match the cost of coverage. Pursuant to the Department of Tax Notice No. N-17-12 [PDF], Paid Family Leave contributions are deducted from employees’ after-tax wages.

For 2026, employees will contribute 0.432% of their gross wages per pay period, with a maximum annual contribution of $354.53. Employees earning less than the current NYSAWW of $1,833.63 will contribute less than the annual cap of $411.91, consistent with their actual wages. Commissions and bonuses are considered wages for PFL purposes.

An employer may choose to pay for the Paid Family Leave benefit on behalf of employees.

You can learn more about the Paid Family Leave act on the NY Paid Family Leave website.

Please review this website for the contribution rate and average weekly wage to be used in your deductions.

AccountEdge Setup

Employee Responsibility

If Employees are funding the Paid Family Leave benefit, this will be handled through an Employee Deduction.  

Initially, create the PFML - NY Employee Deduction and set the rate and limit.  Going forward, the Employee Deduction will need to be updated whenever there is change to the rate and limit.  Typically this happens annually.

Set Up New York PFML Employee Deduction 

Go to Payroll > Payroll Categories > Deductions

• Select the PFML - NY Employee Deduction and click Edit.   If the PFML - NY Employee Deduction does NOT exist, click new, and enter the name PFML - NY - Employee.
• Type:  PFML-Paid Family Medical Leave
• State: NY
• Type of Deduction:  Select the second radio and enter the 2026 rate of 0.432% and select Percent of Gross Wages.
• Deduction Limit:  Select the third radio and enter the 2026 annual limit 411.91 and select Dollars per Year.
• Click the Employee button to add PFML - NY to all New York Employees.

Set Up New York PFML Employee Deduction: 

1. Go to Payroll > Payroll Categories > Deductions 

2. Select PFML - NY EE Contrib (or your NY PFML deduction) and click Edit - If it does not exist, click New and enter the name: PFML - NY EE Contrib 

3. Configure the deduction:

• Type: PFML
• State: NY - Type of Deduction: Percent of Gross Wages
• 2026 Rate: 0.432% (2026 rate)
• Deduction Limit: $411.91 annually 

4. Click the Employee button to apply to all Minnesota employees.

Employer Responsibility

If your Employees fund the Paid Family Leave benefit:

• Double-check that the PFML - NY Employer Expense Rate is 0.0%.  The PFML - NY Employer Expense is automatically created with a PFML Rate of 0.0%.

If you opt to cover the cost of the Paid Family Leave benefit on behalf of your employees:

• The PFML - NY Employer Expense is automatically created with a PFML Rate of 0.0%. 
• The wage limit will be automatically updated, but you must set the PFML rate.

Set Up New Yorkk PFML Employer Expense

Go to Payroll > Payroll Categories > Expenses

• Select the PFML - NY Employer Expense and click Edit.
• If Employees fully fund PFML, enter 0.0%.
• If you are funding PFML, update the PFML rate to the 2025 rate of 0.432% with a wage limit of $95,349.54.
• Click the Employee button to add PFML - NY to all New York Employees.