The “NY FLI” line on your W-2 is your payroll contribution to New York’s Family Leave Insurance program, which funds the state’s Paid Family Leave benefits. Your employer withholds it from each paycheck and reports the yearly total on your W-2 for your records. For most workers it sits in Box 14 as informational text, not as a tax you still owe or a deduction that lowers your wages.
Where to Find It and What the Label Means
Check Box 14 first. That’s the catch-all space employers use for additional withholding information, and most payroll systems drop the family leave figure there with a label like “NY PFL,” “NY FLI,” or a close variation. Box 14 doesn’t feed automatically into your federal or state tax calculation, so the number is there for you to see, not to re-enter as a tax payment.
Some payroll platforms place the amount in Box 19 instead, which is normally used for local income tax. If a figure in Box 19 doesn’t line up with the city tax you’d expect, read the label in Box 20. When it says “NY PFL” or “FLI,” that’s your family leave contribution and not a local tax. Either placement is acceptable; the label is what tells you which one you’re looking at.
Why the Number Is What It Is
New York resets the contribution rate every January based on the state’s Average Weekly Wage. For 2026, employees pay 0.432% of gross wages per pay period, with a hard annual cap of $411.91.1New York State Paid Family Leave. New York Paid Family Leave Updates for 2026 Your employer runs the math and stops the deduction once you hit the cap, so nothing on your end needs tracking.
The 2026 Statewide Average Weekly Wage used in the formula is $1,833.63. Earn at or above that and you’ll pay the full $411.91 across the year. Earn less and you pay proportionally less: someone making $60,000 contributes roughly $259 over the year.1New York State Paid Family Leave. New York Paid Family Leave Updates for 2026 Because the rate and cap change annually, the W-2 figure can differ year to year even if your salary doesn’t. The 2024 rate was 0.373% with a $333.25 cap, for comparison.
What to Do With the Figure at Tax Time
For most filers, nothing. The contribution comes out of your paycheck after federal and state income taxes are calculated, so it does not reduce the taxable wages reported in Box 1 of the W-2.2Department of Taxation and Finance. New York State Paid Family Leave You already paid income tax on the money that went to the premium.
If you itemize on your federal return, there’s a small opening. Under IRS Revenue Ruling 2025-4, mandatory state PFL contributions qualify as state income taxes deductible on Schedule A. That deduction is subject to the $10,000 federal cap on state and local tax deductions, so it only helps if you haven’t already hit that ceiling with property and income taxes. Many New York taxpayers already exceed the SALT cap, in which case adding the PFL contribution produces no additional federal benefit.
If You Also Received PFL Benefits During the Year
A W-2 shows what you paid in. If you actually took leave and collected benefit payments, those arrive separately on a Form 1099-G or Form 1099-MISC from the state or your employer’s insurance carrier, and the tax picture flips. The benefit payments count as taxable income on your federal return and must be reported in gross income.2Department of Taxation and Finance. New York State Paid Family Leave New York also treats them as taxable income, and the same 1099 covers your state reporting.
The common surprise: no federal income tax is automatically withheld from PFL benefit payments, because they aren’t classified as wages for federal employment tax purposes. You can request voluntary withholding, which is worth doing. Without it, you’ll owe the full tax on those benefits when you file. Setting aside roughly 20-25% of each benefit payment, depending on your bracket, is a reasonable estimate if you skip formal withholding.
Can You Opt Out of the Deduction?
Generally no. Nearly every private-sector employee in New York contributes to PFL, and employers with even a single employee must carry the coverage. Public-sector workers aren’t automatically covered, but their employer or union can opt in.3Paid Family Leave. Paid Family Leave and Other Benefits
A narrow waiver exists for people who won’t be around long enough to qualify for benefits. If you work 20 or more hours per week but will not be employed for 26 consecutive weeks with that employer, or you work fewer than 20 hours and won’t hit 175 days in a 52-week period, your employer must offer you a waiver. Signing it stops the deductions and gives up any right to benefits.4Paid Family Leave. Eligibility This mostly comes up for seasonal and short-term workers. Everyone else sees the line on their W-2 every year.