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PFML Private Plans

Subject: PFML Private Plans

I would like to know how your payroll system handles PFML Private plans. Most states with PFML allow private plans and allow employers to deduct a portion of the premiums from their employees to use to offset the premiums of a private plan. However, the state rules need to be followed, such as limits on the max percentage allowed to deduct from employees, wage base limits, taxable wages, and W2 reporting. I would like to know how your payroll system would support this.

If a deduction is used, can that deduction be set up to only include a percentage of the taxable wages allowed, and set the annual max. allowed? Does the deduction code have to be manually added to the employees in each specific state?

Or do you have a special tax code set up and attached to employees in each state to compute the premiums based on a percentage of taxable wages as well as wage base limits, but not pass the collections to the tax agency?

Any help on how your company handles this would be greatly appreciated! Thanks in advance!


  • Does anyone have any feedback on this situation. I would like to know how your company or payroll provider handles these types of policies please. Any feedback would be greatly appreciated! Thank you!