Connecticut Paid Family & Medical Leave (PFML)
Effective January 1, 2021 employers with one or more employees working in Connecticut must begin mandatory employee payroll taxes of 0.5% of income, up to the Social Security wage base for a State PFML plan; there is no required employer contribution.
Benefits begin January 1, 2022, providing up to 12 weeks for family and medical leave and 14 weeks for pregnancy disability leave in any 12-month period. Learn more
here.
Private Plan Option Provides Financial Incentive
Employers may apply for approval to meet obligations under the law through a Private Plan; the Private Plan must provide all of the same rights, protections and benefits as provided under the PFML law.
Similar to MA PFML, employers with Private Plans approved by March 31, 2021, do not have to pay the employee PFML contribution of 0.5% for Q1 2021; contributions may be waived or used to fund their Private Plan. In addition, the process for approval of a Private Plan requires that the majority of the employees working in Connecticut vote in favor of the Private Plan, among other obligations.
A Private Plan option may make sense for your organization, but to make a decision you will need to consider the cost, how employees will access benefits, and other benefits your offer. If you are interested in a Private Plan option, please take note that employee communication requirements, arranging for an employee vote, and obtaining Private Plan rates will take some time, so we strongly recommend you begin evaluating Private Plan options as soon as possible.
Several insurers have been approved by the State of CT, although many are just preparing to begin the quote process.
What You Need to Do Now
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Consider Private Plan Options; ask your current disability carrier for a proposal as soon as possible if you intend to offer one. AAAAAAAAAAAAAAAAAAAAAAAAAAAA
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Register with The Connecticut Paid Family and Medical Leave Authority (the Authority) by December 31, 2020; this is required and will ensure you receive any important information issued by the Authority. Before you register, access the checklist here. Please note: prior to registering with the Authority, make sure your business has established a State identity at https://stg.login.ct.gov/ctidentity/registration. AAAAAAAAAAAAAAAAAAAAAAAA
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Prepare to Withhold Employee Payroll Deductions; plan to withhold from employee paychecks starting January 1, 2021 if you are implementing the State plan. If you are planning for a Private Plan, consider withholding from employee paychecks and refund their employee contributions if your Private Plan is approved, or use those contributions toward Private Plan costs and adjust withholdings prospectively. AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA
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Notify your Connecticut Employees of your Intentions; advise them of impending withholdings (see employee communication materials below), if you are planning to implement a Private Plan address your intentions and advise employees how you will conduct the mandatory vote.
