CT Paid Family and Medical Leave Act (PFMLA) Requires New Payroll Tax Withholding Effective January 1

CT Paid Family and Medical Leave Act (PFMLA) Requires New Payroll Tax Withholding Effective January 1

All Connecticut employers with at least one employee are required to withhold 0.5% of all wages paid after January 1, even if the wages are for time worked before January 1.  Employers includes churches and employees includes clergy – there are no exemptions for churches and clergy.

The first step for churches is to register at www.ctpaidleave.org. The instructions state that if you are using Internet Explorer, to please switch browsers before getting started.  If you don’t already have another browser, such as Google Chrome or Mozilla Firefox, you may want to download and install another browser to ensure that you can register easily.
The website appears to be comprehensive and well designed.  It includes Frequently Asked Questions and video guides for employers and employees.
Self-employed individuals, including any clergy appropriately so classified (clergy working as pastors are generally employees) are eligible to participate in the program.
This program will benefit churches that have difficulty providing paid leave for clergy and other staff that need temporary replacement.  With most of the paid leave covered by the Connecticut Paid Leave Authority, churches will have funds to pay for replacement staff.

Added: Dec. 9:
Question: Are clergy housing allowance amounts included in wages subject to the tax?
Answer.  Yes. Conference counsel has reviewed the law and advised us that clergy housing allowance amounts will likely need to be included when calculating the tax.  Unless or until Connecticut provides additional guidance, the prudent thing to do is to include housing allowances.

Visit www.ctpaidleave.org for additional information.

Photo by Kelly Sikkema for Unsplash.

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Charlie Kuchenbrod

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Charlie Kuchenbrod

Charlie is Legacy Church Specialist for the Southern New England Conference.

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