New York issues guidance on new Paid Family Leave Program

The New York Department of Taxation and Finance has issued a notice discussing the personal income tax implications of the state’s new paid family leave program. The notice provides the following specific guidance:

  • 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, but 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; and
  • benefits should be reported by the State Insurance Fund on Form 1099-G and by all other payers on Form 1099-MISC. (Important Notice N-17-12, New York Department of Taxation and Finance, August 2017.)

Visit our News Library to read more news stories.