Under this bill, employers would pay into an insurance program established under the Department of Employment and Economic Development (DEED). The DEED commissioner would maintain a premium account in which each employer must pay premiums quarterly at a rate. Employers would also be required to submit a quarterly wage detail report to the commissioner.
This bill would provide that any employee (FT or PT) has a right to leave under this legislation 90 days after date of hire. It would require 30 days’ notice to an employer for foreseeable leave, or if not practicable because of the circumstances, as soon as practicable. Leave could be taken on an intermittent or reduced-schedule basis if reasonable and appropriate to the needs of the individual.
Under this bill, employers would be required to submit electronically a quarterly wage detail report including for each employee in covered employment during the calendar quarter, the employee’s name, total wages paid to the employee, total number of paid hours worked, number of employees, and other information as prescribed by the DEED commissioner.
The bill would require all employers to pay a yearly premium on employee taxable wages, paid quarterly into the family and medical benefit insurance account and calculated based on the wage detail report. The bill would allow an employer to deduct up to 50% of the premiums paid by the employer from employee wages.
Employers that provide their own paid family and medical leave plan could apply to the Commissioner for approval to meet their obligations under this bill so long as the plan confers all of the same rights, protections, and benefits provided to employees under the bill.
Calculate your premium cost
One way to estimate this premium would be to pull 2022 total wages and multiply by .7% (.007).
- Keep in mind that the maximum wage subject to a premium in a calendar year is equal to the maximum earning subject to Social Security tax.
- You should review payroll and isolate individual wages that exceed the maximum earning and reduce total wages accordingly. The wage cap for 2022 is $147,000 and for 2023 is $160,200.
Premium rate adjustments would be made annually depending on the amount dispersed under the program in the prior year.