September 17, 2021
Connecticut deadline for employer paid family and medical leave insurance catch-up contributions is September 30, 2021
The Connecticut Paid Leave Authority announced that employers making additional catch-up deductions for Connecticut Paid Family and Medical Leave Act (PFMLA) have until September 30, 2021 to complete the process and remit the withheld amounts. After September 30, 2021, employers will only be allowed to deduct the 0.5% contribution from employees' wages.
Effective January 1, 2021, Connecticut employers with one or more employees are required to withhold up to 0.5% from employees' covered wages up to the Social Security wage limit ($142,800 for 2021). PFMLA payments are required to be made by the close of each quarter. Covered employers are required to register with the Authority.
Up to 12 weeks (14 weeks for those experiencing a serious health condition resulting in incapacitation that occurs during a pregnancy) of PFMLA benefits are available to eligible individuals starting January 1, 2022.
Sole proprietors and independent contractors may opt into the PFMLA program.
Starting July 1, 2022, employers are required to provide written notice to new employees upon hire and annually to all employees about their entitlement to PMFLA. (PFMLA information card; PFMLA mailer; PFMLA poster.)
The law allows employers to alternatively provide the same or better benefits as the PFMLA program at the same or lesser cost to employees through a private plan. Private plans must be approved by the state and meet certain requirements. Employees covered by an approved private plan are not required to contribute to the state's PFMLA program.
If employers were delayed in withholding PFMLA from employees' wages due to the time required to make payroll system updates, the Connecticut Department of Labor allows them to make catch-up deductions of not more than 1% of the employees' wages. Originally, catch-up deductions were allowed only through the first two quarters of 2021; however, the Authority announced that this deadline is extended through September 30, 2021.
Note that employers can't make catch-up deductions if they did not take the required deductions due to a lack of understanding their legal obligations or because they did not agree with the law. Employers that simply failed to take deductions will be responsible for any contributions that should have been made to the Authority.
More information about Connecticut PFMLA is available here.
Ernst & Young LLP insights
Connecticut is one of several states (California, District of Columbia, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Washington) that have established paid family and medical leave insurance program. While Connecticut's program is funded only by employees, other states also require employer contributions. For the current paid family and medical leave insurance rates read our special report here.
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