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ISSUE 7
tax through payroll deductions and remitted to the state by the employer. There are a few states that have an employer contribution component, but the majority of PFL plans are employee-funded. Maine’s PFL, for example, starts January 1, 2025, and the total deduction requirement is 1% of an employee’s gross wage. The employer can opt to pay the entire 1% or recoup up to .5% from the employee. Payroll needs to work with HR colleagues in implementing these new requirements so that deductions are properly made and accruals are reported accurately and timely. Although a federal requirement for paid leave remains elusive, requirements for paid sick leave and paid family leave are becoming more popular post-COVID. In the most recent election cycle, citizens of Alaska, Missouri, and Nebraska voted to require employers to provide sick leave. On January 1, 2026, another four states (Delaware, Maine, Maryland and Minnesota) are expected to implement their Paid Family Leave programs. How Payroll is Involved How does all this relate to or impact a company’s payroll? Modern technology is great with being able to track taken and accrued time off, but the challenge is understanding
the laws and regulations to configure accrual policies.
If one thing is certain, it is that a one- size-fits-all leave program is practically impossible in an environment where full-time workers must accrue leave at one rate, part-timers at another, and minimum amounts that need to accrue and carry-over vary. Often it is a best practice to consult with an employment attorney specific to the state or jurisdiction an employer does business in to craft a plan to meet the leave law’s requirements. While it can seem overwhelming as a payroll leader to stay informed of any changes and new requirements, resources are available, and my payroll colleagues in the U.S. are up to the task.
Author: April Smith
April Smith, CPP, is the Director of Payroll & Benefits
for Senior Lifestyle LLC (SLC) based in Chicago. SLC specializes in the senior housing industry. April has 18 years of experience in various Payroll & HR roles where she developed a broad range of skills in areas critical to the employee base of an organization and operational goals.
Email: AprilS@seniorlifestyle.com
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