December 10, 2020
2020-2831 2021 state disability and paid family and medical 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 of paying into the state insurance fund(s). The following chart shows the state SDI and PFML rates and taxable wage limits for 2021 based on information currently available. Changes or additions from 2020 are in bold. State disability and paid family medical leave insurance Tax year 2021 | State/jurisdiction | Employee contribution | Employer contribution | Taxable wage limit if applicable 1 | California | | | | Disability | 1.2% | None | $128,298 | Paid family and medical leave | Included in disability | N/A | Included in disability | Connecticut | | | | Disability | None | None | None | Paid family medical leave | 0.5% (effective January 1, 2021) | None | $142,800 (2021 Social Security wage limit) | Colorado | | | | Disability | None | None | None | Paid family medical leave | 50% of 0.9% (effective 1/1/2023, for employers of 10 or more, employees pay 50%; if fewer than 10 employees, employees pay 100%) | 50% of 0.9% (effective 1/1/2023, employers of 10 or more employees pay 50%; if fewer than 10 employees, employers pay 0%) | 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. The maximum weekly contribution is $5.51 | Difference between cost and worker's contribution | $1,102.90 (weekly) | Paid family medical leave | None | None | None | Massachusetts 4 | | | | 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% | $142,800 (Social Security wage limit) | New Jersey 3 | | | | Disability | 0.47% | 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% | $138,200 | Paid family medical leave | 0.28% | None | $138,200 | 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 | Paid family medical leave | 0.511% (maximum of $385.34 per year) | None | $1,450.17 (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 Rico 2 | | | | Disability | 0.3% | 0.3% | $9,000 | Paid family medical leave | None | None | None | Rhode Island 5 | | | | Disability | 1.3% (2020) | None | $72,300 (2020) | Paid family medical leave | Included in disability | N/A | Included in disability | Washington | | | | Disability | None | None | None | Paid family medical leave | 63.33% of 0.4% (if employer has fewer than 50 employees, employees pay 100% of the premium) | 36.67% of 0.4% (if employer has 50 or more employees, otherwise the employee pays 100% of the premium) | $142,800 (Social Security wage limit) |
——————————————— Contact Information
For additional information concerning this Alert, please contact:
|
———————————————
ENDNOTES 1 Represents maximum annual earnings unless another period is specified. Where the employer contribution is stated as a percentage, the taxable wage limit applies. 2 Puerto Rico. Not anticipated to change for 2021. 3 New Jersey. Legislation (A 3975) effective January 1, 2020, separated the computation of the temporary disability and family leave insurance taxable wage base from that of the state unemployment insurance taxable wage base and increased the figure by almost four times the previous level to fund expanded disability benefits. 4 Massachusetts. According to guidance issued by the Massachusetts Department of Family and Medical Leave, the total rate will remain at 0.75% for 2021. 5 Rhode Island. The 2021 temporary disability insurance rate and wage base have not yet been released. According to a Department representative, rate information will not be released before mid-December 2020. ———————————————
ATTACHMENT EY Payroll News Flash 
|
