NYPFL and NYSDI - what is it and is it deducted from Box 1 of our w-2?

[az148]

Is NYPFL and NYSDI deducted from our paychecks for all full-time employees each pay period? Is this amount automatically deducted from box 1 of our w-2 or do we need to itemize our deductions in order to claim this amount? thank you

[LenaH · Accepted solution]

Yes. NYPFL and NYSDI are amounts that are deducted from your pay each period. These deductions may be deductible as a state and local tax if you itemize your deductions on Schedule A (Itemized Deductions). All full-time NYS employees are subject to these deductions. 

NYPFL is New York Paid Family Leave is insurance that is funded by employees through payroll deductions. Each year, the Department of Financial Services sets the employee contribution rate to match the cost of coverage. In 2022, the employee contribution is 0.511% of an employee’s gross wages each pay period. The maximum annual contribution is $423.71. Pursuant to the Department of Tax Notice No. N-17-12 [PDF], Paid Family Leave contributions are deducted from employees’ after-tax wages. Employees earning less than the Statewide Average Weekly Wage (SAWW) of $1,594.57 will contribute less than the annual cap of $423.71, consistent with their actual wages. Commissions and bonuses are considered wages for PFL purposes.

NYSDI is for state disability insurance. This establishes a fund for any employees who become disabled by an illness or injury that occurs off the clock, or becomes disabled due to pregnancy. The current withholding rate per New York is 1/2 of 1% of wages paid. In addition, although the cap is $0.60 per week.

The correct category for NYPFL and NYSDI in W-2 box 14 when inputting your W-2 is any one of the following slight variations:
- Other mandatory deductible state or local tax not on the above list
- Other Mandatory Deductible State or Local Tax Not Listed Above
- Other mandatory deductible state or local tax not listed
- Other deductible state or local tax

[az148]

@LenaH So to confirm, I can only claim NYPFL and NYSDI as deductions if I itemize my return, cannot take the standard deduction and claim them, correct? thank you!

[LenaH]

Yes. If you take the standard deduction, NYPFL and NYSDI are not deductible. 

@az148

[nica2]

WHAT IS THE CORRECT CATEGORY I SHOUL SELECT FOR NYSDI AND NYPFL (BOX 14)   I TAKE THE STANDARD DEDUCTION??

[JulieS]

You should choose "Other (not classified)" from the bottom of the drop down list.

Box 14 is used to report items that do not affect your federal tax return, so  every possible entry is not listed, only the ones that affect your state return. 
 

[nica2]

Hi  Julies

so I have to choose for the NYPFL box the category "Other (not classified) and also for the NYSDI box the category "Other (not classified)"

For your information, I am single and take the standard deduction.

I am asking again because when I uploaded my W2 PDF to Turbotax and got to the page regarding Box 14, I found the category "New York Non-Occupational Disability Fund" pre-selected (or automatically assigned by Turbotax) for NYSDI and I don't know if I have to leave it like this or change the selection to the one you told me in your previous answer: "Other (not classified)"
On the other hand, for the category referring to NYPFL there was no category preselected by turbotax!!
Please what do I have to select for NYPFL and NYSDI as the correct category? Should i select for both the category "Other (not classified)"? Thank you

[JulieS]

Yes, you should select "Other (not classified)" for both of these payments. 

[LWes]

We itemize, and I chose the 'Other Not Classified' option and it's not showing on Schedule A.  How do I get it to carryforward to schedule A as an itemized deduction? 

[AmyC]

In order to itemize, you need to change your w2 box 14 entries to correctly reflect the deductions. Paid family leave and disability should be entered with the matching description. You will see the break down on State Tax Ded worksheet on line 17.