Connecticut business owners are required to offer Paid Family and Medical Leave (PFML) — but here’s something most people don’t know:
You’re not supposed to pay for it out of pocket.
In Connecticut, the entire program is funded by your employees. Yet many employers are still absorbing the cost — often because their payroll company set things up wrong or never explained how the law works.
Let’s break it down.
What Is Connecticut PFML?
Connecticut’s Paid Family and Medical Leave program gives employees up to 12 weeks of paid, job-protected leave to:
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Bond with a new child
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Care for a family member with a serious health condition
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Recover from their own health issue
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Handle family matters related to active-duty military service
An additional 2 weeks may be available for pregnancy-related health issues, bringing the total to 14 weeks in some cases.
It’s a valuable benefit—but it’s not your financial responsibility as the employer.
How It’s Funded
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Funding Rate: 0.5% of employee wages
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Who Pays: 100% employee-paid
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Cap: Applies only to wages up to the Social Security limit (in 2025, that’s $168,600)
This means you are legally allowed — and expected — to withhold 0.5% from your employees’ paychecks to fund this benefit.
If you’re not withholding it, you’re paying it yourself—and you don’t have to.
The Problem with Some Payroll Companies
Unfortunately, we see it all the time:
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Some payroll providers don’t withhold PFML at all
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Others bundle it in with other state taxes and don’t show it clearly
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Some make the decision for you — without explaining that employees are responsible for 100% of the cost
That means you could be overpaying every single pay period.
Why This Matters (Especially in Connecticut)
Connecticut is a compliance-heavy state, and the PFML Authority audits employers to ensure the right deductions are being made and remitted. If your payroll setup is wrong:
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You may owe back contributions
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Your employees might not get the benefits they’re entitled to
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You could be eating costs that aren’t yours to cover
Baron Payroll Does It Right
When you work with Baron Payroll:
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We set up PFML withholding correctly from day one
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You’ll see clear, separate line items on employee pay stubs
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We explain every deduction, so you know where your money is going — and where it’s not
Most importantly, you stay compliant without overpaying.
Should You Be Withholding PFML in Connecticut?
If your payroll provider never mentioned PFML — or never explained that it’s fully employee-funded — you might be footing a bill that isn’t yours.
And over time, that adds up to thousands of dollars.
Want to see how much you could be saving?
👉 Use our instant price calculator — no sales call required.
Or visit https://www.baronpayroll.com/itin-service to learn more.
If you found this article helpful, here are some others you might like:
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- Why are my W2 Wages Lower Than my Salary?
- How to Choose the Best Payroll Company for Your Small Business
- The Pros and Cons of Paying Employees with Payroll Paycards
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