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December 19, 2019
2019-2252

2020 state disability and paid family leave insurance wage base and rates

Six jurisdictions — California, Hawaii, New Jersey, New York, Puerto Rico and Rhode Island — operate state disability insurance (SDI) programs. Another nine jurisdictions — California, Connecticut, District of Columbia, Massachusetts, New Jersey, New York, Oregon, Rhode Island and Washington are now operating, or will soon be operating, paid family and medical leave (PFML) insurance programs.

Depending on the jurisdiction, the employee may pay all contributions to the SDI and/or PFML program through wage withholding, or the employer and the employee may share the cost of the insurance coverage. Most states allow employers to use a private insurance company or self-insured plan in lieu if paying into the state insurance fund(s).

The following chart shows the state SDI and PFML rates and taxable wage limits for 2020 based on information currently available.

Changes or additions from 2019 are highlighted in yellow.

State disability and paid family medical leave insurance

Tax year 2020

State/jurisdiction

Employee contribution

Employer contribution

Taxable wage limit if applicable1

California

   

 Disability

1.0%

None

$122,909

California, cont'd

Paid family medical leave

Included in disability

N/A

Included in disability

Connecticut

   

Disability

Paid family medical leave

None

0.5% (effective January 1, 2021)

None

None

None

Social Security wage limit

District of Columbia

   

Disability

None

None

None

Paid family medical leave

None

0.62%

None, payroll tax is on total wages

Hawaii

   

Disability

50% of cost but not more than 0.5% of covered weekly wages up to a maximum. Weekly contribution of $5.60

Difference between cost and worker's contribution

$1,119.44 (weekly)

Paid family medical leave

None

None

None

Massachusetts4

   

Disability

None

None

None

Paid family medical leave

0.75% (Employees pay 100% of family leave portion. If employer of 25 or more employees, 40% of medical insurance portion; otherwise employee pays 100%.)

For employers of 25 or more employees, 60% of medical insurance portion of rate; otherwise employees pay 100%.

$137,700 (Social Security wage limit)

New Jersey3

   

Disability

0.26%

New employers pay 0.5% of taxable wages if in state plan; otherwise, experience rating applies. For other employers, experience rates range from 0.1% to 0.75%.

$134,900

Paid family medical leave

0.16%

None

$134,900

New York

   

Disability

0.5% up to:

$0.14 daily

$0.60 weekly

$1.20 biweekly

$1.30 semi-monthly

$2.60 monthly

Balance of costs over employee contributions necessary to provide benefits

None

New York, cont'd

   

Paid family medical leave

0.27% (maximum of $196.72 per year)

None

$1,401.17 (weekly)

Oregon

   

Disability

None

None

None

Paid family medical leave

60% of 1.0% (Eff. 1/1/2022, for employers of 25 or more, employees pay 60%; if fewer than 25 employees, employees pay 100%)

40% of 1.0% (Eff. 1/1/2022, employers of 25 or more employees pay 40%; if fewer than 25 employees, employers pay 0%)

Social Security wage limit

Puerto Rico2

   

Disability

0.3%

0.3%

$9,000

Paid family medical leave

None

None

None

Rhode Island                  

   

Disability

1.3%

None

$72,300

Paid family medical leave

Included in disability

N/A

Included in disability

Washington

   

Disability

None

None

None

Paid family medical leave

63% of 0.4%

37% of 0.4%

$137,700 (Social Security wage limit)

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)

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ENDNOTES

1 Represents maximum annual earnings unless another period is specified. Where employer contribution is stated as a percentage, the taxable wage limit applies.

2 Puerto Rico. Not anticipated to change for 2020.

3 New Jersey legislation (A 3975) effective January 1, 2020 separates the computation of the temporary disability and family leave insurance taxable wage base from that of the SUI taxable wage base and increases the figure by almost four times the previous level to fund expanded disability benefits.

4 According to Massachusetts representatives, the total rate will remain at 0.75% until at least October 2020.

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