Explain My Paycheck

What is a paid family leave (PFL) payroll deduction on my paycheck?

State & Local Taxesbeginner3 answers · 7 min readUpdated February 28, 2026

Quick Answer

Paid Family Leave (PFL) is a payroll deduction that funds paid time off for bonding with new children or caring for seriously ill family members. In California, employees pay 0.9% of wages up to $153,164 in 2026, providing up to 8 weeks of benefits at 60-70% wage replacement.

Best Answer

SC

Sarah Chen, CPA

Best for employees in states with PFL programs who want to understand their deduction and benefits

Top Answer

What is Paid Family Leave (PFL)?


Paid Family Leave (PFL) is a payroll deduction that funds state programs providing paid time off for family caregiving. Unlike vacation or sick leave from your employer, PFL is a state-mandated insurance program that provides wage replacement when you need to care for family members or bond with a new child.


Currently, 12 states and Washington D.C. have enacted PFL programs: California, Connecticut, Colorado, Delaware, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island, and Washington. According to the National Partnership for Women & Families, over 75 million workers now have access to some form of paid family leave.


How much does PFL cost employees?


PFL costs vary significantly by state. Here are the 2026 rates for major programs:


California PFL (largest program):

  • Rate: 0.9% of wages (shared with SDI)
  • Maximum taxable wages: $153,164
  • Your portion: Approximately 0.45% for PFL specifically
  • Maximum annual cost: ~$689

  • New York PFL:

  • Rate: 0.511% of wages
  • Maximum taxable wages: $142,800
  • Maximum annual cost: $730

  • Example: PFL deduction calculation


    California employee earning $80,000:

  • Total SDI/PFL rate: 0.9%
  • Annual deduction: $80,000 × 0.9% = $720
  • PFL portion: ~$360 (approximately half)
  • Biweekly PFL deduction: ~$13.85
  • Monthly PFL deduction: ~$30

  • New York employee earning $60,000:

  • Annual PFL deduction: $60,000 × 0.511% = $307
  • Biweekly deduction: $11.81
  • Monthly deduction: $25.58

  • What benefits does PFL provide?


    PFL provides partial wage replacement for qualifying family leave situations. Benefits typically replace 50-70% of your average weekly wages, subject to state maximums.


    California PFL benefits (2026):

  • Duration: Up to 8 weeks per year
  • Wage replacement: 60-70% of wages
  • Maximum weekly benefit: $1,540
  • Waiting period: 7 days

  • New York PFL benefits (2026):

  • Duration: Up to 12 weeks per year
  • Wage replacement: 67% of wages
  • Maximum weekly benefit: $1,068
  • No waiting period

  • Qualifying reasons for PFL benefits


    Bonding with new children:

  • Birth of your child
  • Adoption or foster placement
  • Both parents can use PFL benefits

  • Caring for seriously ill family members:

  • Spouse or domestic partner
  • Children (including adult children)
  • Parents or grandparents
  • Siblings (in some states)

  • Military family support:

  • Caring for injured service member family
  • Handling deployment-related family needs

  • Key factors affecting your PFL deduction


  • Your state: Only 12 states plus D.C. currently have PFL programs
  • Income level: Higher earners hit wage caps and stop paying on income above limits
  • Employment history: You typically need recent work history to qualify for benefits
  • Family situation: Benefits are only for specific family caregiving scenarios

  • How PFL differs from FMLA


    The federal Family and Medical Leave Act (FMLA) provides unpaid leave, while state PFL programs provide paid benefits. According to the U.S. Department of Labor, only 23% of workers have access to paid family leave through their employers, making state PFL programs crucial for most families.


    FMLA vs PFL comparison:

  • FMLA: Up to 12 weeks unpaid, job protection
  • PFL: 6-12 weeks paid (varies by state), job protection varies
  • You may be able to use both simultaneously

  • What you should do


    Check your paystub for PFL deductions and understand your state's program. Keep records of your contributions, as they establish your benefit eligibility. If you're planning a family or dealing with a family health crisis, research your state's PFL application process in advance.


    Use our paycheck calculator to see how PFL affects your take-home pay and factor these deductions into your family financial planning.


    Key takeaway: PFL costs 0.45-0.9% of wages in participating states, providing 60-70% wage replacement for up to 8-12 weeks of family caregiving leave annually.

    Key Takeaway: PFL costs 0.45-0.9% of wages in participating states, providing 60-70% wage replacement for up to 8-12 weeks of family caregiving leave annually.

    PFL programs by state for 2026 - employee costs and benefits

    StateEmployee RateMax Weekly BenefitDuration (weeks)Wage Replacement
    California~0.45% (combined with SDI)$1,540860-70%
    New York0.511%$1,0681267%
    New Jersey0.09%$7591285%
    Rhode Island1.1% (combined with SDI)$978560%
    Washington0.4% (combined with PFML)$1,3271290%
    Connecticut$0 (employer-funded)$7801295%

    More Perspectives

    SC

    Sarah Chen, CPA

    Best for remote workers who may work across states with different PFL programs

    PFL complications for remote workers


    Remote work creates complex PFL situations because your deduction location may differ from where you live and where you need family leave. Understanding which state's program applies to you is crucial for both payroll deductions and benefit eligibility.


    General rule: You typically pay into the PFL program where your employer withholds your income taxes, regardless of where you physically work or live.


    Common remote worker PFL scenarios


    Scenario 1: You live in Texas (no PFL) but work remotely for a California company

  • You'll likely pay California PFL: ~0.45% of wages
  • You can use California PFL benefits for family leave
  • Texas residence doesn't affect your California PFL obligations
  • Annual cost on $70,000 salary: ~$315

  • Scenario 2: You live in New York (has PFL) but work for a Texas company

  • Depends on your tax withholding arrangement
  • You might miss out on New York PFL benefits
  • Some employers voluntarily participate in destination state programs

  • Scenario 3: You split time between multiple states

  • PFL obligations follow your primary work location
  • Benefits may be limited if you don't meet state residency requirements
  • Coordination between state programs varies

  • Multi-state benefit coordination challenges


    Unlike federal programs, state PFL benefits don't transfer. If you pay into California PFL but move to New York mid-year, you can't combine your benefit eligibility. According to state labor departments, this affects roughly 15% of remote workers annually.


    What to verify with your employer


    1. Which state's PFL you're paying into

    2. Whether you're eligible for benefits in your home state

    3. How job location changes affect PFL

    4. Coordination with company family leave policies


    Key takeaway: Remote workers' PFL obligations depend on employer tax withholding location, potentially creating mismatches between where you pay and where you need benefits.

    Key Takeaway: Remote workers' PFL obligations depend on employer tax withholding location, potentially creating mismatches between where you pay and where you need benefits.

    SC

    Sarah Chen, CPA

    Best for people who moved between states and need to understand changing PFL obligations

    PFL when you move between states


    Moving between states can dramatically change your PFL situation. You might gain access to paid family leave for the first time, lose benefits you previously had, or switch between different state programs with varying benefits.


    Moving TO a PFL state


    Example: Moving from Texas (no PFL) to California

  • You start paying California PFL: ~0.45% of wages
  • On $65,000 salary: ~$293 annually or $11.27 biweekly
  • You become eligible for California PFL benefits after establishing work history
  • No retroactive benefits for family events before contributing

  • Benefit eligibility timeline:

  • California: Must have earned $300+ in base period (typically previous year)
  • New York: 26 consecutive weeks of employment
  • Most states: 3-12 months of contributions required

  • Moving FROM a PFL state


    Example: Moving from New Jersey to Florida

  • You stop paying New Jersey PFL when employment ends
  • Previous contributions don't provide ongoing benefits
  • You lose access to paid family leave unless your new employer provides it
  • No refund for PFL contributions made

  • Moving between PFL states


    Cost comparison for $75,000 earner:

  • California PFL: ~$338 annually
  • New York PFL: $383 annually
  • Rhode Island PFL: $413 annually
  • New Jersey PFL: $235 annually

  • Benefit differences are even more significant:

  • California: 8 weeks at 60-70% wages
  • New York: 12 weeks at 67% wages
  • Rhode Island: 5 weeks at 60% wages

  • Planning considerations for movers


    Before moving:

  • Research PFL programs in your destination state
  • Factor PFL costs into salary negotiations
  • Consider timing of planned family events
  • Understand benefit eligibility timelines

  • After moving:

  • Update W-4 and state withholding immediately
  • Confirm PFL deductions appear on new paystubs
  • Document your work history for benefit eligibility
  • Review coordination with employer leave policies

  • Special considerations for military families


    Military families face unique PFL challenges with frequent relocations. Some states provide benefits for military deployment situations, while others don't. The Servicemembers Civil Relief Act may provide some protections, but state PFL programs operate independently.


    Key takeaway: Moving between states can cost you access to paid family leave benefits, with no carryover between state programs and varying eligibility requirements that may leave you temporarily unprotected.

    Key Takeaway: Moving between states can cost you access to paid family leave benefits, with no carryover between state programs and varying eligibility requirements that may leave you temporarily unprotected.

    Sources

    pflpaid family leavepayroll deductionsfamily leave benefitsstate taxes

    Reviewed by Sarah Chen, CPA on February 28, 2026

    This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.