What Is the FAMLI Deduction on Your W2?

The “FAMLI” deduction on your W2 represents contributions to a state-administered Family and Medical Leave Insurance program. This deduction typically appears in Box 14 of your W2 form, labeled as “FAMLI” or a similar designation. It signifies your contribution to a state fund for paid leave benefits.

What FAMLI Contributions Represent

The “FAMLI” line item on a W2 indicates a mandatory payroll deduction, much like other withholdings such as federal income tax or Social Security. These contributions fund a state-run social insurance program, ensuring that eligible workers have access to paid leave when needed. Contributions are typically a percentage of an employee’s gross wages, with a portion paid by the employee and often a matching or larger portion paid by the employer.

These contributions are generally considered post-tax deductions, meaning they do not reduce an employee’s taxable income for federal purposes. Employers are responsible for collecting the employee’s share through payroll deductions and remitting the funds to the state’s FAMLI division, usually on a quarterly basis. While employees typically contribute a set percentage of their wages, some states may also require employer contributions, often splitting the cost equally or with the employer paying a larger share.

Benefits of the FAMLI Program

The contributions made to a FAMLI program provide individuals with paid leave benefits for a range of qualifying life events. These programs offer partial wage replacement, ensuring that workers do not face complete loss of income when they need to take time off from work. Common reasons for utilizing FAMLI benefits include caring for a new child, whether through birth, adoption, or foster placement. It also covers leave for an employee’s own serious health condition, which can encompass illnesses, injuries, or conditions related to pregnancy and childbirth.

Additionally, FAMLI programs allow individuals to take leave to care for a family member with a serious health condition. The duration of benefits typically ranges, with many programs offering up to 12 weeks of paid leave, and some providing additional weeks for complications related to pregnancy or childbirth. The wage replacement rate often varies on a sliding scale, with lower-wage earners receiving a higher percentage of their average weekly wages.

State Variations in FAMLI

Family and Medical Leave Insurance is not a federal program, meaning its existence and specifics vary considerably across the United States. While some states have established comprehensive FAMLI programs, others do not currently offer such benefits. For states that do have these programs, there can be notable differences in eligibility requirements, such as the amount of wages an individual must have earned to qualify.

Contribution rates and how they are split between employees and employers also differ by state, though they are often capped at a certain percentage of wages. The types of leave covered can vary, alongside standard medical and family care reasons. Furthermore, the maximum duration of benefits and the percentage of wage replacement provided can differ significantly from one state program to another. Individuals should consult their specific state’s labor department or relevant agency to understand the precise regulations and benefits applicable to their situation.