Nypsl-E Tax Code Category (2024)

FAQs

What category is NYPSL-E in box 14? ›

It is paid sick leave. It should show as an informational item in box 14 of your W-2.

To deduct this as a state income tax, you would enter "NYPFL" in the description for box 14 of your W-2 form, then the amount in box 14 and select "Other deductible state or local tax" for the entry the Category box.

New York Paid Family Leave premiums will be deducted from each employee's after-tax wages. The paid family leave can be called Family Leave SDI as long as it is a separate item in box 14. State disability needs to be reported separately from the Paid Family Leave in box 14 of Form W-2.

Box 14 is used to report amounts that don't belong in other boxes on Form W-2. Employers can use it to report additional tax or income information for filing or informational purposes. Some employers use box 14 to report amounts deducted for State Disability Insurance taxes or union dues that may be tax deductible.

Your employer will deduct premiums for the Paid Family Leave program from your after-tax wages. Your premium contributions will be reported to you by your employer on Form W-2 in Box 14 as state disability insurance taxes withheld.

How are taxes impacted if an employee files a claim for NYPFL or NYDBL? Employees would receive the benefit payout without taxes withheld, which needs to be reported on a Form 1099-Misc as taxable, non-wage income.

Employees may be granted a waiver to opt out of the PFL benefit and to not have deductions taken from their paycheck only if they do not meet the minimum amount of time required for eligibility. To opt out, you may complete a PFL waiver (https://www1.nyc.gov/assets/dcas/downloads/ pdf/agencies/pfl_waiver_nyc.

Paid Family Leave is not optional for eligible employees. Coverage can only be waived if: You regularly work 20 hours or more per week, but you won't be in employment with that employer for 26 consecutive weeks; or. You regularly work fewer than 20 hours per week and you will not work 175 days in a 52-week period.

Local Services Tax (LST)

Coding CTPL in Box 14 of your W-2 represents funding to support the CT Paid Leave program. Employee payroll deductions beginning January 1, 2022 are capped at 0.5% of the employee's wages up to the 2022 Social Security contribution base of $147,000.00, or $735.00 CTPL taxes paid.

Is Paid Family Leave taxable in the IRS? ›

Your PFL income is taxable on both your federal and state return. Here's how to enter this income in TurboTax: Enter your W-2 info as you normally would in TurboTax–here's how. When asked, Do any uncommon situations apply to this W-2?, don't check the box Paid family leave.

E = Military TSP contribution (Tax Exempt) *MOST COMMON. F = TIAA/CREF and Fidelity Retirement. G = Pre-tax Transportation Equity Tax.

In the drop down box for box 14 of your W-2, report NYSDI as NY Nonoccupational Disability Fund. The payment may be deductible as a state and local tax if you itemize your deductions on Schedule A Itemized Deductions.

Employers can put just about anything in box 14; it's a catch-all for items that don't have their own dedicated box on the W-2. In TurboTax, enter the description from your W-2's box 14 on the first field in the row.