Understanding Paid Family and Medical Leave with BSI
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Key Takeaways
⇨ Different states have varying benefit duration, wage replacement rates, eligibility criteria, and funding mechanisms for their PFML programs.
⇨ Less than half (43%) of the workforce within the private sector can access short-term disability coverage through their employer.
⇨ Many SAP organizations are turning to partners like Business Software Inc. (BSI) to help simplify the burdens and close gaps in payroll tax processes, helping to smooth out the issues associated with Paid Family and Medical Leave.
In the United States, Paid Family and Medical Leave is a complicated and uneven process. Workers often need time off of work for medical leave, maternity/paternity leave, or caregiving leave, in addition to several other options. Not everyone is guaranteed PFML, as there is no federal law ensuring that workers can access paid days off for these reasons.
Additionally, only 13 states have passed laws guaranteeing paid family and medical leave. Some states do not even have unpaid time off. This leaves companies in a difficult position, particularly those with workforces that cross state lines. Organizations must find automated and streamlined solutions to ensure that all employees can access their state-mandated benefits.
Breaking Down Paid Family and Medical Leave
Explore related questions
Different states have varying benefit duration, wage replacement rates, eligibility criteria, and funding mechanisms for their PFML programs. The majority of states with PFML laws on the books provide at least 12 weeks of benefits. This includes time off and financial benefits that typically account for a certain percentage of a worker’s income.
Most private sector jobs provide employees with sick days for brief illnesses, but this is generally not enough to cover an extended medical issue. Without state benefits, some workers can receive coverage through their employer, but this is not common.
Less than half (43%) of the workforce within the private sector can access short-term disability coverage through their employer – leaving over half of that workforce potentially without access depending on where they live. The statistics are even more stark depending on employment type. Just 22% of part-time workers have access to this coverage, compared to just over half of those with full-time employment.
Overcoming PFML Hurdles
Many SAP organizations are turning to partners like Business Software Inc. (BSI) to help simplify the burdens and close gaps in payroll tax processes, helping to smooth out the issues associated with Paid Family and Medical Leave. BSI offers solutions like ComplianceFactory to ensure that companies are complying with Federal, State, Local and Territory regulations.
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