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Level 1

Do I check the box "i earned all or part of this income as paid family leave"?

I went on paternity leave and utilized Paid Family Leave through the state of CA.  I received a 1099G from CA for my PFL payments.  In addition, while I was out on paternity leave, my employer supplemented my PFL payments by paying me through my accumulated sick and vacation days.  My question is, after entering my W-2 from my employer, I should NOT check the box "Paid Family Leave - I earned all of part of this income as paid family leave" correct?  The income I was receiving while I was on paternity leave through my employer was coming out of my sick and vacation time so I believe that is not considered paid family leave payment.  Only the income that I received from EDD is considered paid family leave payments correct?

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Level 1

Do I check the box "i earned all or part of this income as paid family leave"?

You are correct.  Paid Family Leave (PFL) is either administered by a governmental agency or a private insurer.

When the PFL is paid by the state of California, then the amount is reported by the Employment Development Department (EDD) on a Form 1099-G, which will make it a non-taxable event for the state. In other words, the PFL is not reportable or taxable to the Franchise Tax Board.

When the PFL is paid my an insurer, then the PFL is reported on the Form W-2 as income.  You will then check that it is a PFL W-2. The reason is to ensure that the appropriate adjustment is made to exclude the amount as income on the California return.

Vacation and sick leave are considered fringe benefits an employer may choose to offer; therefore, the benefits are not considered PFL.

1 Reply
Level 1

Do I check the box "i earned all or part of this income as paid family leave"?

You are correct.  Paid Family Leave (PFL) is either administered by a governmental agency or a private insurer.

When the PFL is paid by the state of California, then the amount is reported by the Employment Development Department (EDD) on a Form 1099-G, which will make it a non-taxable event for the state. In other words, the PFL is not reportable or taxable to the Franchise Tax Board.

When the PFL is paid my an insurer, then the PFL is reported on the Form W-2 as income.  You will then check that it is a PFL W-2. The reason is to ensure that the appropriate adjustment is made to exclude the amount as income on the California return.

Vacation and sick leave are considered fringe benefits an employer may choose to offer; therefore, the benefits are not considered PFL.