19 December 2019 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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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. ———————————————
ATTACHMENT Document ID: 2019-2252 |
