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NYPFL and NYSDI - what is it and is it deducted from Box 1 of our w-2?

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February 12, 2022
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Is NYPFL and NYSDI deducted from our paychecks for all full-time employees each pay period? Is this amount automatically deducted from box 1 of our w-2 or do we need to itemize our deductions in order to claim this amount? thank you

Best answer by LenaH

Yes. NYPFL and NYSDI are amounts that are deducted from your pay each period. These deductions may be deductible as a state and local tax if you itemize your deductions on Schedule A (Itemized Deductions). All full-time NYS employees are subject to these deductions.

NYPFL is New York Paid Family Leave is insurance that is funded by employees through payroll deductions. Each year, the Department of Financial Services sets the employee contribution rate to match the cost of coverage. In 2022, the employee contribution is 0.511% of an employee’s gross wages each pay period. The maximum annual contribution is $423.71. Pursuant to the Department of Tax Notice No. N-17-12 [PDF], Paid Family Leave contributions are deducted from employees’ after-tax wages. Employees earning less than the Statewide Average Weekly Wage (SAWW) of $1,594.57 will contribute less than the annual cap of $423.71, consistent with their actual wages. Commissions and bonuses are considered wages for PFL purposes.

NYSDI is for state disability insurance. This establishes a fund for any employees who become disabled by an illness or injury that occurs off the clock, or becomes disabled due to pregnancy. The current withholding rate per New York is 1/2 of 1% of wages paid. In addition, although the cap is $0.60 per week.

The correct category for NYPFL and NYSDI in W-2 box 14 when inputting your W-2 is any one of the following slight variations:
- Other mandatory deductible state or local tax not on the above list
- Other Mandatory Deductible State or Local Tax Not Listed Above
- Other mandatory deductible state or local tax not listed
- Other deductible state or local tax

LenaHAnswer

Yes. NYPFL and NYSDI are amounts that are deducted from your pay each period. These deductions may be deductible as a state and local tax if you itemize your deductions on Schedule A (Itemized Deductions). All full-time NYS employees are subject to these deductions.

NYPFL is New York Paid Family Leave is insurance that is funded by employees through payroll deductions. Each year, the Department of Financial Services sets the employee contribution rate to match the cost of coverage. In 2022, the employee contribution is 0.511% of an employee’s gross wages each pay period. The maximum annual contribution is $423.71. Pursuant to the Department of Tax Notice No. N-17-12 [PDF], Paid Family Leave contributions are deducted from employees’ after-tax wages. Employees earning less than the Statewide Average Weekly Wage (SAWW) of $1,594.57 will contribute less than the annual cap of $423.71, consistent with their actual wages. Commissions and bonuses are considered wages for PFL purposes.

NYSDI is for state disability insurance. This establishes a fund for any employees who become disabled by an illness or injury that occurs off the clock, or becomes disabled due to pregnancy. The current withholding rate per New York is 1/2 of 1% of wages paid. In addition, although the cap is $0.60 per week.

The correct category for NYPFL and NYSDI in W-2 box 14 when inputting your W-2 is any one of the following slight variations:
- Other mandatory deductible state or local tax not on the above list
- Other Mandatory Deductible State or Local Tax Not Listed Above
- Other mandatory deductible state or local tax not listed
- Other deductible state or local tax

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A

az148Author

@LenaH So to confirm, I can only claim NYPFL and NYSDI as deductions if I itemize my return, cannot take the standard deduction and claim them, correct? thank you!