What Is New York Family Leave (NY FLI) on My W2?
Demystify NY Family Leave Insurance (NY FLI) on your W2 and its financial implications.
Many individuals reviewing their W2 forms might notice a deduction labeled “NY FLI.” This entry represents contributions to New York’s Paid Family Leave program. This article clarifies what NY FLI is, how it appears on your W2, and its associated tax implications.
Understanding New York Family Leave Insurance
New York Family Leave Insurance (NY FLI), also known as Paid Family Leave (PFL), is a state-mandated program providing eligible employees with paid, job-protected time off for specific life events. The program aims to offer financial security and job stability during these significant personal or family needs.
Employees can utilize NY FLI for several qualifying reasons. These include bonding with a new child, whether through birth, adoption, or foster care, within the first 12 months of placement. It also covers caring for a close family member, such as a spouse, parent, child, or grandparent, who has a serious health condition. Additionally, the leave can address qualifying exigencies when a family member is called to active military service abroad or has been deployed.
Most private sector and certain public employees in New York State are covered. Eligibility requires full-time employees to have worked 26 consecutive weeks, or part-time employees 175 days. The program offers up to 12 weeks of leave, with benefits generally 67% of an employee’s average weekly wage, capped by the statewide average weekly wage. For example, in 2024, the maximum weekly benefit was $1,151.16 and $1,177.32 for 2025.
NY FLI on Your W2
The “NY FLI” on your W2 form signifies your contribution to this state-mandated insurance program. This deduction represents the employee-paid portion that funds Paid Family Leave benefits. It is typically located in Box 14 of the W2, which is designated for other tax information.
Employers are required to withhold these contributions from an employee’s wages; they are not optional for eligible workers. The specific label in Box 14 might vary, sometimes appearing as “NY PFL” or “NYFLI_EE,” but all refer to the same program. These deductions are calculated as a percentage of gross wages, up to an annual maximum.
For 2024, the employee contribution rate for NY FLI was 0.373% of gross wages, with an annual cap of $333.25. This rate and cap are adjusted annually based on the statewide average weekly wage. In 2025, the contribution rate is 0.388% of gross wages, with a maximum annual contribution of $354.53. These amounts are deducted from an employee’s after-tax wages.
Tax Treatment of NY FLI
The tax treatment of New York Family Leave Insurance involves how both contributions and benefits are handled for tax purposes. This influences federal and state income tax filings.
Employee contributions to NY FLI, shown in Box 14 of your W2, are generally not deductible on your federal income tax return. While some state-specific deductions might be allowed, these contributions typically do not reduce federal taxable income. However, they may be deductible under New York state tax regulations; consult the latest state tax guidelines.
Conversely, benefits received under the New York Paid Family Leave program are considered taxable income. These benefits are subject to federal and New York state income tax. Employers do not automatically withhold taxes from these benefit payments; however, individuals receiving benefits can request voluntary tax withholding to avoid a larger tax liability at year-end. These benefits are typically reported on Form 1099-G or Form 1099-MISC.