If you hired a nanny in New York, you've probably wrapped your head around NYS-45 (the quarterly state tax return) and the federal stuff your accountant keeps mentioning. Then someone says "DBL and PFL" and the room goes quiet.
DBL and PFL are real legal obligations, but you don't pay them to the state. They're insurance premiums that go to a private carrier. Most new families find out about this late, sometimes years late, and discover they've been quietly out of compliance the whole time.
The short answer: Get a combined DBL/PFL policy through NYSIF, the public NY State Insurance Fund. Online application takes ~10 minutes, NYSIF must accept any NY employer, and total cost runs about $15–25/month for a typical nanny (mostly funded by your nanny's paycheck). You can shop private carriers later for marginal savings, but NYSIF gets you compliant fast.
What is DBL (Disability Benefits Law)?
Disability Benefits Law (DBL) is New York's short-term disability insurance for non-work injuries and illnesses. If your nanny breaks an ankle skiing, has surgery, or recovers from a difficult pregnancy, DBL covers part of their lost wages while they're out.
The benefit itself is modest. It pays 50% of average weekly wage, capped at $170/week (WCL §204), for up to 26 weeks during any 52-week period. The $170 cap has not been raised since 1989, so think of DBL as a thin floor of income protection rather than full wage replacement. Some carriers offer richer "enhanced DBL" policies, but the legal minimum is all that's required.
Coverage becomes mandatory after you've employed one or more people for 30 days (WCL §202). For a household that just hired their first nanny, that means a policy in place within the first month.
You can deduct part of the premium from your nanny's paycheck, but you don't have to. The cap is 0.5% of wages, no more than $0.60/week (WCL §209). Anything above that comes out of your own pocket.
What is PFL (Paid Family Leave)?
Paid Family Leave (PFL) is the larger and newer of the two NY mandates. Active since 2018 and expanded each year, it pays your nanny when they need to:
- Bond with a new child (birth, adoption, or foster placement)
- Care for a family member with a serious health condition
- Handle a qualifying military exigency
The 2026 benefit is much richer than DBL: 67% of average weekly wage, capped at $1,228.53/week, for up to 12 weeks per 52-week period.
PFL is funded entirely by employee payroll deductions, set each year by the NY Department of Financial Services. For 2026 the rate is 0.432% of gross wages, with a maximum annual contribution of $411.91. You don't owe an employer share. Your job is to withhold PFL premiums each pay period and remit them to your carrier on schedule.
When does my nanny actually qualify for PFL benefits?
A nanny working 20+ hours per week becomes eligible for PFL benefits after 26 consecutive weeks of employment. A nanny working under 20 hours per week becomes eligible after 175 days of work in a 52-week period.
| Schedule | Eligible to file a claim after |
|---|---|
| 20+ hours/week | 26 consecutive weeks of employment |
| Under 20 hours/week | 175 days of work (need not be consecutive) |
Until your nanny crosses one of those thresholds, they can't receive benefits. You're still required to withhold premiums and have a policy in place from day one.
Where do you actually pay DBL and PFL?
You pay both to a private insurance carrier or NYSIF, not the state. Three options:
| Option | What it is | Best for |
|---|---|---|
| Private carrier | ShelterPoint, Hartford, Guardian, Prudential, and others | Most household employers; competitive online quotes |
| NYSIF | NY State Insurance Fund, a public not-for-profit | Anyone turned down by private carriers; NYSIF is required to accept any employer who applies |
| Self-insurance | Become your own insurer with WCB approval | Large employers only; not realistic for households |
Here's the part that saves time once you know it: PFL coverage is typically sold as a rider on a DBL policy. When you buy DBL, you usually get PFL bundled in. One policy, one carrier, one bill.
How much DBL and PFL cost in 2026
A NY nanny earning $50,000/year costs about $266–366/year in combined DBL and PFL premiums. Here's the annual breakdown:
| Item | Annual cost | Who pays |
|---|---|---|
| DBL premium | ~$50–150 (varies by carrier) | Employer covers full premium; can deduct up to $31/year ($0.60 × 52) from nanny |
| PFL premium | $216 (0.432% × $50,000) | Nanny via payroll deduction |
| Total | ~$266–366/year |
PFL is exact because the rate is set by NY DFS. DBL varies because you're shopping a real insurance market: quotes depend on your carrier, your nanny's age and demographics, and whether you bundle with other coverage. Most household employers end up paying $15–25/month total on combined DBL+PFL coverage.
For different wage levels:
| Annual nanny wages | PFL withheld from nanny | DBL premium estimate | Total |
|---|---|---|---|
| $20,000 | $86.40 | ~$50 | ~$136 |
| $50,000 | $216.00 | ~$120 | ~$336 |
| $100,000+ | $411.91 (capped) | ~$220 | ~$632 |
PFL hits its annual cap at about $95,400 of wages, so a high-earning nanny stops paying once they've contributed $411.91 for the year.
How to get DBL and PFL coverage in 4 steps
Getting DBL/PFL coverage takes about 30 minutes online:
- Get an EIN. Same one you use for federal payroll. Carriers won't write a policy without one.
- Pick a carrier (NYSIF is the easy default). Most household employers go with NYSIF. They have to accept you, the online application takes about 10 minutes, and they specialize in statutory-minimum coverage with no upselling. If you'd rather shop private carriers (ShelterPoint, Hartford, Guardian) for potential savings of 5–15%, that's a fine alternative. Just ask each one for "DBL + PFL Statutory" coverage in the household employer category.
- Apply for the policy. Online application, 15–30 minutes. You'll provide nanny info, expected annual wages, and hire date.
- Set up payroll deductions. Once the policy is active, start withholding $0.60/week DBL and 0.432% PFL on every pay period.
Coverage usually goes back to the policy effective date — not the nanny's hire date — so don't put it off. The longer you delay, the bigger the catch-up bill if WCB ever audits.
What NannyKeeper handles, what you handle
NannyKeeper calculates and tracks the employee-side of DBL ($0.60/wk max) and PFL (0.432% of wages, capped at $411.91/year) on every paycheck. Your /taxes page rolls up what's accumulated each quarter so you know what to send your carrier when their bill arrives.
What NannyKeeper does not do today:
- Set up your insurance policy
- Choose a carrier or pull quotes for you
- Remit premiums directly to your carrier on your behalf
The "set up the policy" step is a one-time, 30-minute task. After that, NannyKeeper handles the per-paycheck deductions and per-quarter tracking on autopilot, and reminds you when something's accumulated that needs to be paid.
FAQ
Should I use NYSIF or a private carrier?
For most newbies, NYSIF is the right starting point. They must accept any NY employer (no rejection risk), the online application is straightforward, and they specialize in statutory-minimum coverage, which is exactly what most households need. Private carriers can be 5–15% cheaper for some situations, which is useful if you're already comparison-shopping, but the time spent shopping often outweighs the savings for a typical household.
What if my nanny opts out of PFL?
A nanny can only waive PFL if they work fewer than 20 hours per week and won't reach 175 days of work in a 52-week period, or they work 20+ hours but won't be employed for 26 consecutive weeks. Most regular nanny arrangements don't qualify for the waiver.
Can DBL and PFL come from the same carrier?
Almost always. Every major NY DBL carrier sells PFL as a rider. You'll buy a single "Combined DBL/PFL" policy, get one ID card, and pay one premium each billing cycle.
Does NYS-45 cover any of this?
No. NYS-45 is the quarterly return for NY state income tax withholding and unemployment insurance, which both go to the NY Department of Taxation and Finance. DBL and PFL go to a private carrier on a completely separate billing schedule. They never touch NYS-45.
What happens if I don't have coverage?
WCB can assess penalties of $50 to $500 per 10-day period without coverage, plus interest on the premiums you would have owed. If your nanny is injured off the job and you don't carry DBL, you can become personally liable for the benefits a carrier would have paid.
Is there a separate registration with the state for DBL/PFL?
No. Your insurance carrier reports your coverage to WCB electronically when the policy is issued. You don't file anything directly. NYS-45 registration with the NY Department of Taxation and Finance is a separate step you handle when you start withholding state income tax.
Is Disability Benefits Law (DBL) the same as workers' compensation?
No. Workers' compensation covers injuries that happen on the job (a fall down the stairs while carrying laundry, an injury during outdoor play). Disability Benefits Law covers injuries and illnesses that happen off the job (skiing accident, surgery, non-work-related conditions). NY household employers usually need both: a workers' comp policy and a separate DBL/PFL policy. Many carriers sell them together as a package.
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