Each year, DBL Center insurance brokers eagerly await the new premium rates for the next year for New Jersey TDB and New York DBL insurance. A rate hike from the states means enhanced opportunities for brokers as business owners seek ways to save money on statutory benefits.
This fall, we have even more to report.
As additional states introduce mandatory benefits, brokers have more opportunities to help businesses privatize paid family and medical leave in various states for cost savings and enhanced service. Plus, by bundling ancillary worksite benefits, business owners can improve retention rates amongst employees and brokers can increase commissions.
When an insurance broker tells a business owner they can save 15% to 25% compared to the state’s rate, plus receive personalized service and faster payouts, it’s a no-brainer to privatize required short term disability and paid family leave coverage.
In today’s tight labor market, where employees want everything you can give them and more – it’s a win-win to offer benefits packages that provide peace-of-mind at a low cost to both employers and employees.
Rely on The DBL Center to Find Your Clients’ Extra Money For Ancillary Benefits
There’s a lot to track now that seven states currently have paid family and medical leave with private options available, and more have programs coming soon.
That’s why it’s best to rely on The DBL Center as your wholesale general agency to manage your clients’ required benefits for you. We can help you find money for your clients to spend on other benefits. You can focus on building relationships and cashing commission checks.
Several states have already announced their premium rates and benefits. In states where private plans are available that have not yet started offering benefits, business owners may be able to hold off on remitting the first year’s premiums if they write through a private plan.
The DBL Center can help you take advantage of this savings and then use the “found money” to write vision, dental, group life/AD&D, long-term disability, and voluntary worksite benefits at tremendous savings.
New PFML Rates Across the States with Required Benefits
Let’s take a look at the premium rates across the states that are now mandating some form of paid family and medical leave. Refer to our Paid Family Leave Resource Center for more details on each state.
Connecticut Paid Family and Medical Leave
Connecticut announced that the premium contribution rate for Paid Family and Medical Leave for 2024 will remain the same as this year. The State Plan contribution will hold steady at 0.5% of an employee’s total wages, up to the Social Security limit.
The plan is funded entirely by employee contributions, with no required contributions from employers. Connecticut PFML covers up to 95% of an employee’s base weekly earnings, up to 40 times the state minimum wage, with a maximum weekly benefit of $900 in 2024.
Colorado Family and Medical Leave Insurance (FAMLI)
Colorado is also keeping its premium rates the same for 2024. Contributions are split 50/50 between the employer and employee, with each paying 0.45% of the employee’s wage up to the Social Security wage cap.
In July 2023, the Colorado weekly wage increased to $1,421.16, which means the maximum annual benefit also went up. Benefits are paid on a sliding scale depending on the employee’s weekly wage, with lower income employees able to collect up to 90% of their wages. Individuals whose wages exceed $710.58 per week may only receive 50% of their average weekly wage.
Delaware Paid Family and Medical Leave
Delaware is in the midst of rolling out its Paid Family and Medical Leave program, set to go into effect in 2026, with premiums deducted from payroll beginning in January 2025.
The premium rate will be 0.85% of an employee’s wages, with up to 50% of that contribution paid by the employee and the balance paid by the employer. Private options for Delaware PFML will be available, so stay tuned to The DBL Center website for updates.
Massachusetts Paid Family and Medical Leave
Massachusetts also announced new premium contribution rates and maximum weekly benefits for its MA Paid Family and Medical Leave program this month. Premium contributions vary based on the size of the company.
Employees at businesses with more than 25 Massachusetts-based employees will pay 0.46%, deducted from their paycheck, while the employer must pay 0.42% to make a total contribution of 0.88%. Employees at businesses with fewer than 25 will pay the total of their portion of the required premium amount of 0.46%.
New Jersey TDB and FLI
New Jersey bundles temporary disability benefits (TDB) with family leave insurance (FLI). In 2024, employees must contribute 0.09% of their taxable wage base, which is the first $161,000 in covered wages, with a maximum annual contribution of $144.90.
The employer contributes on the basis of a taxable wage base of $42,300, with a contribution of 0.10% to 0.75% of the taxable wage base. This percentage has not changed since last year, although the wage base increased.
The maximum weekly benefit for TDB in New Jersey has risen from $1025 to $1055.
New York Paid Family Leave
The first state (after California) to kick off a Paid Family Leave program, NYS PFL set the stage for the adoption of PFML programs in other states. New York recently announced its rate for 2024 PFL. In 2024, employers will pay 0.373% of their wages, up to a maximum of $333.25. NYS PFL is fully funded by employees.
The dip in premium rates at the state level gives insurance brokers in NY an opportunity to encourage employees to put that cost savings into other plans that may benefit them more, depending on their stage of life. Some employees may benefit from voluntary vision or dental plans, or even group life/AD&D or long-term care insurance. The DBL Center can help you write these benefits on a voluntary or cost-shared basis to provide something for employees spanning every demographic.
Maryland Family and Medical Leave Insurance
Beginning in October 2024, the state of Maryland will collect 0.90% of an employee’s covered wages for FAMLI, up to the social security cap. Employers with 15 or more employees will be required to cover half the premium amount, but employers may choose to cover more.
Other employers may choose to pay any amount but are not required to do so.
The benefit offers up to $1,000 a week, depending on the base salary, for up to 12 weeks.
With such a high premium rate compared to New York, Maryland business owners can save money by privatizing FAMLI benefits through a licensed DBL Center broker and roll that savings into other desired benefits.
Oregon Family and Medical Leave (FAMLI)
Oregon rolled out its Family and Medical Leave Act (FAMLI) insurance in September 2023. The contribution rate for Oregon FAMLI for 2024 stays the same as this year, which is 1% of wages up to $132,800. Employers contribute 0.4% while employees pay 0.6%. Employers with fewer than 25 employees do not have to contribute but must deduct and remit employee contributions of 0.6%.
Contact Us to Expand Your Book of Business
The DBL Center can help you tap into these new markets or expand your profit potential in states where employers have a choice to privatize Paid Family and Medical Leave. Contact us today to find out how.