CT 2021 Paid Household Medical Go away Act PFMLA Deadlines

Thursday 4th February 2021

In 2019, Connecticut legislature passed major changes to the state’s existing Family and Sick Leave Act that we previously reported here. One of the key changes is that eligible employees will be entitled to paid family and sick leave from 2022. Although the paid vacation requirement won’t go into effect until next year, there are a number of deadlines for 2021 that employers should be aware of.

Website and mandatory employer registration

With the changes to the PFMLA in 2019, the Connecticut Paid Leave Authority (the “Authority”) was created to administer the paid leave program. The agency has set up an information and registration website for employees and employers: www.ctpaidleave.org.

All Connecticut employers with one or more employees must participate in the paid family and sick leave program and register on the agency’s website. Employer registration is now open. Instructions and a video tutorial on learning the process can be found on the website.

Wage deductions

Paid vacation is funded solely through wage deductions for employees who started on January 1, 2021. Currently, employees on the program are taxed at 0.5 percent of their weekly wages (limited to the Social Security base, which is currently $ 142,800 in 2021).

Employers must submit employee contributions to the authority every quarter, but no later than the last business day of the month following the end of the quarter. Late payments can result in penalties and interest. If an employer fails to remit the required contributions after notification of the contributions owed, the agency will exercise its legal authority to work with a government debt collection agency to collect the funds owed, including penalties and interest.

Employers can submit the contributions directly to the agency, or a third party administrator (ie a payroll company) can submit on behalf of employers.

Exemption for Qualified Private Plans

An employer can apply for an exemption from the paid vacation program if they offer their own paid family and sick leave that provides their workers with the same rights, safeguards, and benefits granted by the PFMLA and the majority of the employer’s Connecticut workers on the private Plan. Information on how to apply for an exemption can be found on the agency’s website.

Summary of key dates in 2021

  • Ongoing: Sign up for the paid vacation program

  • January 1, 2021: Employee income tax deductions begin

  • March 31, 2021: The payroll period for the first quarter ends

  • April 30, 2020: Last day for employers to transfer the wage and payroll contributions for the first quarter to the authority

  • Autumn 2021: Employees can submit applications for paid vacation benefits to the authorities

  • Jan 1, 2022: Paid Vacation Benefits for Eligible Applicants

© 2020 Epstein Becker & Green, PC All rights reserved.National Law Review, Volume XI, Number 35

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