What Category Is NYPFL in Box 14?

The W-2 form often contains various entries in Box 14, designated for “Other Information” not fitting into other standardized boxes. For New York employees, “NYPFL” (New York Paid Family Leave) is a common entry. This article details its tax implications for both contributions and benefits.

Understanding Box 14 on Your W-2

Box 14 on your W-2 reports additional tax-related information. NYPFL contributions are typically found here, often under categories like “State disability insurance taxes withheld” or “Other deductible state or local tax.” These entries reflect mandatory employee contributions to the New York Paid Family Leave program.

The New York Paid Family Leave program provides eligible employees with job-protected paid time off for significant life events, such as bonding with a new child, caring for a family member with a serious health condition, or assisting with military deployment matters. The program is entirely funded by employee payroll deductions, with the contribution rate and maximum annual contribution adjusted each year. For 2025, employees contribute 0.388% of their gross wages, capped at an annual maximum of $354.53.

Tax Treatment of NYPFL Contributions

New York Paid Family Leave contributions are deducted from an employee’s after-tax wages. These contributions are generally not deductible for federal income tax purposes. While some state or local taxes reported in Box 14 might be deductible if you itemize, NYPFL is typically not eligible for this federal deduction.

New York State generally does not allow a deduction for these contributions on state income tax returns. The inclusion of NYPFL amounts in Box 14 serves primarily as an informational entry, helping employees and tax preparers understand deductions taken from wages. These contributions fund the program, but are not tax-deductible expenses in most cases.

Tax Treatment of NYPFL Benefits

It is important to distinguish between NYPFL contributions and the benefits received. Any benefits an employee receives from the New York Paid Family Leave program are considered taxable income at the federal level. These benefits are treated as non-wage income, similar to unemployment compensation, and must be included in federal gross income when filing tax returns.

Unlike regular wages, these benefits are not reported on a W-2 form. The entity that pays the benefits, typically an insurance carrier or the New York State Insurance Fund, will report the amount on either a Form 1099-G or a Form 1099-MISC. Employers do not automatically withhold federal taxes from NYPFL benefits. However, employees have the option to request voluntary tax withholding from these payments to avoid a larger tax liability at the end of the year. New York State generally exempts NYPFL benefits from state income tax.