Employees – Half of one percent (0.5%) will be deducted from your paycheck starting on January 1, 2021, to fund this new state program. Receipt of benefits from the CT Paid Family Medical Leave (PFML) will be available beginning in January of 2022.

Employers – between November 1, 2020, and December 31, 2020 employers need to register with the CT PFML Authority at  www.ctpaidleave.org .  January 1, 2021, begin withholding 0.5% from your employee’s paycheck and remit the withholding to the Authority on a quarterly basis similar to CT unemployment payments.

The Paid Leave Authority is currently working with large payroll companies to develop the electronic file submission protocol. 

Which employees are subject to the payroll deduction? All private industry employees are required to pay into the fund. Government employees, municipal employees, and private school employees are not required to participate and will not be covered by the benefits unless they, as a group, opt into the plan. 

If an employee’s wages are subject to the CT Unemployment tax, those employees are also subject to the CT PFML withholding. The maximum wage for withholding is the same as Social Security, so for 2021,it will be $142,800, meaning a total withholding amount of $714.

Employer tool kit – coming soon to www.ctpaidleave.org. 

If you want more information or help to register your business for CT Paid Family Leave contact our professionals at The Innovative CPA Group (203) 489-0612.  Or contact us online.