Paid Family Leave for Self-Employed New Yorkers
Disclaimer
This guide was last updated on February 28, 2023 and some of the information may have since changed. The information in this guide is not legal advice and is not intended to be relied upon as legal advice. If you have a legal issue, you should not rely on this information and instead speak to an attorney.
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Did you know that self-employed New Yorkers (including independent contractors) are entitled to PAID time off to care for a new child or sick family member?
You may be eligible to receive 67% of your income - up to $1,131.08/week in 2023 - for 12 weeks of bonding time in the first year. As a self-employed individual, your weekly benefits are based on the amount you earned in the past 52 weeks.
The first step is to purchase a policy for both disability insurance and Paid Family Leave within the first 26 weeks of starting your business. You can enroll after 26 weeks, but you will not be able to take Paid Family Leave for two years. The New York State Department of Financial Services states that a self-employed person must obtain coverage within 26 weeks of first becoming self-employed and each self-employed person only gets one 26-week period. A self-employed person - including sole proprietors and members of an LLC or LLP – does not reset the 26-week clock if they change from one type of business entity to another (for instance, sole proprietor to LLC). The New York State Department of Financial Services has a list of insurance companies with approved plans.
Disability benefits provide weekly cash benefits to replace some of the wages you lose due to qualifying injuries or illnesses. Paid Family Leave provides paid time off to care for a new child or family members with qualifying health conditions.
The premium for Paid Family Leave is capped by New York State. Coverage will not cost you more than $399.43 per year in 2023.
You can find additional information here:
· on starting and operating your own business
· on Paid Family Leave
· on bonding leave
· on requesting Paid Family Leave
· on the Paid Family Leave premium cap
