PFLA Delaware

Delaware - Effective January 1, 2025, Delaware now has a paid family leave tax.  Employers are responsible for 100% of the contributions under the plan, but the Act allows the employer to require their employees to pay up to (but no more than) half of their contributions as per the Delaware website link (below).   The Employer Portion of the Paid Family Leave will be tracked accrued under the ETT tax field in the PRCHECKS Table and the Employee withheld portion (if any), will be withheld using the SDI Tax field in the PRCHECKS Table

Employee Family Leave (SDI)

G/L Account - A new G/L Account will need to be set up to track the paid family leave amounts that are deducted from the employee's paycheck.  Be sure to set up this account even if you will NOT be withholding any portion of the Paid Family Leave tax from the employee.

Tax Rate - Enter the rate that you will be using for the employee's portion of the Paid Family Leave tax.  NOTE:   If your employees will NOT be contributing to the plan, then leave the rate set to zero.

Cutoff Limit - It appears from the Delaware Website Link that the cutoff limit for the Paid Family Leave tax will be based on the social security cutoff limit.  Please confirm with your CPA or company controller for setting up the proper cutoff limit.  This cutoff limit will need to be updated as necessary at the start of each new calendar year.

Employer Family Leave (ETT)

G/L Account - A new G/L Account will need to be set up to track the family leave amounts that are accrued for the employer's portion of the Paid Family Leave tax.

Tax Rate - Enter the rate that you will be using for the employer's portion of the Paid Family Leave tax.

Cutoff Limit - It appears from the Delaware Website Link that the cutoff limit for the Paid Family Leave tax will be based on the social security cutoff limit.  Please confirm with your CPA or company controller for setting up the proper cutoff limit. This cutoff limit will need to be updated as necessary at the start of each new calendar year.

Please refer to the Delaware Website Link (below) for more details on the plan and check with your CPA or company controller for more guidance on how the plan rates should be set up for your company’s implementation of the new Family Leave Tax.   https://laborfiles.delaware.gov/main/pfl/Employer_and_TPAs_Guide_to_DPL.pdf.