The Connecticut Paid Family and Medical Leave Act was enacted into law last year and applies to most Connecticut employers with at least one employee. While employees won’t be eligible to use paid leave until January 2022, the funding to support the paid leave will come from employee payroll deductions that begin on January 1, 2021, and beginning in 2021, employers must remit these funds on a quarterly basis to the CT Paid Leave Authority. Employers are not required to contribute anything toward the cost of paid leave. An employer’s role is limited to: making the appropriate payroll deductions of .5% beginning January 1, 2021; submitting the employee contributions on a quarterly basis; and communicating with the Connecticut Paid Leave Authority and employees about leave requests.
There are a few things employers should do now to ensure that they are able to make employee deductions in a timely manner:
- Notify employees about the law and that deductions will start in January;
- Confirm with your payroll service provider or accounting department that it will be ready to begin employee payroll deductions on January 1, 2021; and
- If your payroll service has not already registered you, create an account and register with the CT Paid Leave Authority (directly through the CT Paid Leave website).
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