How PFML premiums appear on a paycheck

There is a line on your payslip you did not choose, deducting somewhere between a few dollars and forty dollars a pay period. It might say PFML, FLI, FAMLI, SDI, TDI, CTPL or just “Paid Leave.” This explains what it is, how much it should be, and what you get for it.

What the deduction actually is

It is a contribution to your state’s paid family and medical leave insurance fund. Unlike income tax, it does not go into general revenue — it buys you a specific entitlement: paid time off, at a percentage of your wages, when you have a baby, need to care for a seriously ill family member, or in most states cannot work because of your own serious health condition.

You do not have to enrol, you cannot opt out at most employers, and you do not lose it if you change jobs within the state. It is insurance you are pre-paying for.

What it is called, state by state

Two jurisdictions are missing from that table on purpose. The District of Columbia funds its program entirely from employers — if you work in DC and see a paid leave deduction, that is an error and your employer may not lawfully make it. Maryland does not start collecting until 1 January 2027.

Checking your deduction is right

Three things can make it wrong, and all three are worth checking.

The wrong state

Coverage follows where you work, not where the company is based. If you work remotely from Colorado for a New York company, you should see a Colorado FAMLI deduction, not New York PFL. Employers get this wrong regularly when someone relocates.

The rate

Take your gross pay for the period, multiply by the employee rate in the table above, and compare. On $70,000 a year paid fortnightly in Washington, gross per period is about $2,692.31, and at 0.8072% the deduction should be roughly $21.73. A few cents of rounding is normal; a different figure entirely is not.

The annual cap

Four states cap what any one employee can contribute in a year: New York at $411.91, New Jersey at $718.62, Connecticut at $922.50 and Rhode Island at $1,100.00. Once you hit the cap, the deduction should stop for the rest of the calendar year. If it keeps coming out, you are owed a refund — raise it with payroll.

Several other states cap the wages rather than the dollar amount, usually at the Social Security base of $184,500. Same effect: high earners stop contributing partway through the year. California is the exception — it removed its wage ceiling entirely, so the 1.3% applies to every dollar you earn.

What you get for it

The benefit is a percentage of your average weekly wage, up to a state maximum, for a capped number of weeks. Replacement rates are progressive in most states — lower earners replace a higher proportion of their pay than higher earners.

You generally claim from the state agency directly, not from your employer, and the agency pays you directly. Your employer’s role is to confirm your employment and wages. That separation matters: the money does not depend on your employer’s goodwill or cash position.

Is it taxable?

The contribution comes out of post-tax pay in most states, and may be deductible as a state tax on an itemised federal return. Benefits you receive are generally treated as taxable income at the federal level for family leave, with the treatment of medical leave benefits varying. Agencies issue a 1099-G or equivalent where benefits are reportable. Check with a tax professional for your situation — this is genuinely state-specific and has changed recently in several places.

Common questions

• Can I opt out? Generally no, if you are a covered employee. Some states allow opt-out for specific categories such as certain self-employed people or employees of an employer running an approved private plan.
• Do I get it back if I never claim? No. It is insurance, pooled across everyone in the state.
• Does it stack with FMLA? They usually run at the same time rather than one after the other. See PFML vs FMLA vs state disability.
• My employer pays my share — is that allowed? Yes, in every state. An employer may always pay more of the premium than required. They may never pay less.

Each state page shows the current rate, the cap and the agency link for that jurisdiction, with the date it was last checked.

Estimates only. Confirm current rates with your state agency before filing or budgeting.