PFL is not subject to FICA withholding. If the employee did not elect to have federal and state income taxes deducted from the gross payment by the carrier, the onus is on him or her.
in the past week, CA enacted a statute permitting the use of PFL to care for non-family members. This maybe a bell weather for us in the northeast.
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Ruth B. Kraft, Esq.
Partner and Chair, Employment Law
Vigorito, Barker, Patterson, Nichols & Porter, LLP
300 Garden City Plaza
Garden City, New York 11530
Ruth.Kraft@vbpplaw.com516-282-3355
Cell 516-353-3306
R.Kraft@vbpnplaw.com------------------------------
Original Message:
Sent: 10-09-2022 11:24 AM
From: Michael Schneider
Subject: Paid Family Leave
My client received a "Claim Payment History" from their insurance company for Paid Family Leave payments to employees. The document states that social security taxes and Medicare taxes would be withheld as well as the optional Federal withholding taxes. None of these taxes were in fact withheld.
The IRS website state that the PFL payments are taxable. We have not as yet received any correspondence stating whether the employer of insurance company will prepare any year end information returns (i.e. W-2 or equivalent).
Does anyone have knowledge on the way to proceed? Is there a simple place to get the methods to proceed?
Thank you for your help.
Michael Schneider
MLSCPA01@GMAIL.COM
516-967-8400
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Michael Schneider CPA
MICHAEL L. SCHNEIDER, CPA
Cedarhurst NY
516-374-8400
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