Coverage for owners in New York may not be included, but it is required for employees.

Category : Payroll Taxes
Posted On : 19th Apr 2025

 

Employers will be required to register in the PFL program through their insurance carrier starting in 2025 to avoid fines and penalties. Officers and owners can choose not to participate in it voluntarily. It's essential for us to adhere to state laws and notify if we're not adhering to them.

Penalties and Fines:

  • Employers can face financial penalties of up to 0.5% of their payroll during the period of noncompliance, as well as an additional penalty of up to $500 for each noncompliant period.

  • Employers could be held accountable for the entire cost of any PFL claims made by employees during the period of non-compliance.

  • Failing to acquire PFL coverage may be classified as a misdemeanor that can be punished with fines ranging from $100 to $500, imprisonment for up to one year, or both.

  • During the period of non-compliance, employers may be held accountable for the total value of any PFL claims made by employees.

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