Frequently Asked Questions

An employer can seek approval of a private plan on a rolling basis with effective dates on January 1, April 1, July 1, or October 1.

Please contact your American Fidelity account manager to sign up for American Fidelity's PFML Insurance private plan. Once you complete the required paperwork and receive a copy of your plan document from American Fidelity, you will still have to apply with the state to use this private plan through your Delaware LaborFirst account.

To ensure all employees understand the new plan and its requirements, it is necessary to provide a written notice. This notice must be provided to all employees localized in Delaware no later than 30 days prior to the start of contributions. The notice must also be provided to employees at the time of hire, when they request leave, and when an employer acquires knowledge that an employee's leave may be a qualifying event. Written notice is required but may be provided electronically to an employee's work email address provided by the employer, or at a personal email address provided by the employee.

Employers are required to maintain a notice poster in a conspicuous place accessible to employees.

The written notice must be provided in English, Spanish, and any language that is the first language spoken by at least 5% of the employer's workforce.

If you use the American Fidelity PFML Insurance private plan, you can post and provide the American Fidelity notice to your employees. If you use the state plan, you can post and provide the state’s notice to your employees. Links for each notice can be found here:

• Download and share American Fidelity's notice at https://assets.americanfidelity.com/media/pr3igwry/af-3836.pdf 
• Download and share the state’s notice at https://laborfiles.delaware.gov/main/pfl/Notice_of_Employee_Rights.docx

To process PFML Insurance claims, you must upload an updated census file through your online account. This will help ensure accuracy when calculating premiums for the PFML Insurance private plan.

To upload your file, follow these steps:

1. Log in to your online account
2. Select Leave Management
3. Click the Census Data button
4. Click Upload Census
5. Browse for your census file
6. Click Upload File

American Fidelity requires wage information to calculate the correct benefit amount during the claims process. Many employers also choose to provide historical wage data during onboarding so they do not have to verify wage data at the time of claim for each employee. Additionally, we need to know who is covered so we don’t pay benefits to ineligible individuals.

When you go through onboarding, you will work with your leave liaison to determine the frequency for submitting your census file, which includes your employees’ payroll data. Depending on the services you select, you may be able to submit your census file either monthly or quarterly. Many employers also choose to submit a census file with each pay period if employees are paid more than once per month. You will also decide whether you want to provide 12 months of historical payroll data during onboarding or if you prefer to verify payroll data at the time of claim for each employee.

American Fidelity does not charge additional fees to administer PFML Insurance claims under your approved equivalent plan. The state sets the maximum amount employees can be charged. For 2026, employees cannot be charged more than .4%, or no more than 50% of the total contribution rate if the total rate is less than 0.8% of gross employee wages. Payments may be subject to other tax obligations. We encourage you to work with your tax advisor.

Employers who do not want to handle third-party sick pay requirements for employees’ medical leave benefits can sign up for Tax Assist and we will handle those requirements for you. Additional fees apply for this service.

While limited exceptions may apply depending on employer size, in general employers must pay at least 50% of the total premium contribution rate. Employers may choose to pay more than 50%. The employer must deduct any remaining portion through employee payroll deduction.

The state requires the first benefit payment to be paid within 30 days after approving a claim; however, employees will typically receive their first weekly benefit payment within two weeks of us receiving all supporting documentation and information. American Fidelity can only process PFML Insurance claims once the claimant employee submits all applicable information and verification to support their claim. Employees who fail to submit documents and information in a timely manner may delay processing times for their claims.

Applications for benefits submitted outside the required timeframe may delay payment of the leave benefits until 30 days after the employee provided notice, unless the employee can demonstrate the late submission was due to a good cause.

You can log in to your online account to view the status of a claim. Select Leave Management from the menu on the left. Employers can view the status of pending leaves and any action items for those claims under the Requested Leave tab. Employers can view employees on approved leave under the On Leave tab.

To review reports, log in to your online account. Select Leave Management from the menu on the left. Then, click the Reports tab.

Third-party sick pay reports and other tax-related reports can be found by clicking the Tax Documents button.

To confirm an employee returning to work:

1. Log in to your online account.
2. Select Leave Management from the menu on the left.
3. Select the employee’s PFML Insurance claim from either the Requested Leave or On Leave tab.
4. Click the Report Return to Work button and follow the on-screen prompts.

To upload documentation for a PFML Insurance claim:

1. Log in to your online account.
2. Select Leave Management from the menu on the left.
3. Depending on the status of the request, select the employee’s PFML Insurance claim from either the Requested Leave or On Leave tab.
4. Then, click the Upload Documents button on the right and follow the on-screen prompts.

The information you include in the census file is the primary information you will need to provide. There are required fields and optional fields in the census template. When you sign up for PFML Insurance, you must also sign and agree to follow the guidelines in the Data Usage and Reporting Agreement. This agreement outlines specific data requirements that must be met, including requests for demographic/census data, historical earnings, and return-to-work information. It also outlines the ways in which we will use the data you provide to us.

During onboarding, you will also complete and sign off on an Implementation Workbook that becomes part of your agreement with American Fidelity and provides the details necessary for us to help administer American Fidelity's PFML Insurance.

Note: When your employees request PFML Insurance or an extension on a current leave, you may need to provide additional information or verification for their request.

Withholdings start with every pay period covering days worked on or after the effective date of your PFML Insurance private plan and continue for as long as you participate in PFML Insurance.

Your private insurance plan must be renewed with the state on a yearly basis at least 30 days prior to the anniversary of the effective date.

Applying to use the American Fidelity PFML Insurance private plan is a two-step process.

First, you will sign up to use the American Fidelity PFML Insurance private plan by contacting your American Fidelity account manager and completing all required paperwork.

Next, you will submit your application to the state along with a copy of your American Fidelity group master policy document (the plan document for your new private plan) in your Delaware LaborFirst employer account.

You should sign up with American Fidelity at least 90 days in advance of your intended effective date to allow time to complete all paperwork, file your application with the state, complete onboarding, and notify employees.

Your account manager will be able to help you and answer your questions throughout this process.

Your PFML Insurance does not have any effect on how you handle employees’ day-to-day absences. You will continue to manage all other types of absences, including sick leave, vacation leave, and other paid or unpaid time off as you usually do, whether that is in a human resource information system (HRIS) or some other method.

There is a cap on the amount of premiums paid per employee each year. Contributions are based on a percentage of an employee's earnings. Once an employee's annual earnings reach the Social Security wage base, contributions are no longer owed on that employee's wages for the remainder of the year. Because the cap on contributions is tied to the Social Security wage base, the cap can change from year to year based on adjustments made to the Social Security wage base.

Note: The salary limit amount is updated each year to reflect changes in inflation and cost of living. These limits do not impact how much an employee is paid – only how the money is reported. These employees still receive coverage under your plan.

If you have questions, please contact your leave liaison.

You can log in to your online account and use your portal inbox to reach out to a specific department or call 800-662-1113 for support.

You will receive an email notification at the email address you provided at onboarding when an employee files a PFML Insurance claim.

If an employee knows they will need to use paid leave, they must give you at least 30 days’ notice. In emergency situations, or when providing 30 days’ notice is not possible, employees must notify employers that they plan to use paid leave as soon as possible and practicable under the circumstances. Generally speaking, it will usually be considered practicable for an employee to provide notice to an employer either the same day they learn they have a need for leave or the following business day. In all cases, however, the specific facts and circumstances will govern what is considered practicable.

Employers are encouraged to include their notice and call-out procedures in their written policies and periodically remind employees of the employer’s expectations and requirements.

The maximum allowed paid leave is 12 weeks per application year. The application year is the 12-month period beginning with the first day of a covered individual's paid leave.

• Leave to care for a family member with a serious health condition and for qualifying military exigencies (6 weeks in a 24-month period)
• Leave for an employee's own serious health condition (6 weeks in a 24-month period)
• Parental leave (12 weeks in a 12-month period)
• Cumulative max per application year for any combination of qualifying reasons is 12 weeks

Employees can make a PFML Insurance claim through their online account at americanfidelity.com/login or AFmobile®, our mobile app. Paper applications are also available but strongly discouraged due to the delays that paper applications can cause.

Eligible employees will receive up to 80% of their own average weekly wage, subject to minimum and maximum weekly benefit amounts set by the state. In 2026, the maximum weekly benefit amount is $900, and the minimum weekly benefit amount is $100 or the employee's full wage replacement amount if the employee makes less than $100 per week. Benefit amounts are determined by the Delaware Department of Labor and are subject to change.

An employer cannot require employees to use earned but unused paid time off (“PTO”) such as vacation leave, sick leave, etc., before accessing paid leave benefits. An employer can agree to allow an employee to use accrued PTO to supplement their wages up to 100% of their average weekly wage. Such agreement must be in writing and signed by the employer and employee.

Spouses do not have to share/combine the total paid leave allotment. Each spouse eligible for PFML Insurance is entitled to the full amount of paid leave while eligible. Keep in mind that this is for PFML Insurance claims only. Other protected leave laws may apply different rules.

Yes, intermittent and reduced‑schedule leave may be available. Intermittent leave must be taken in increments of at least one full workday. Notice requirements apply to all claims, including claims for intermittent or reduced schedule leave. Employees should provide 30 days’ advance notice when the need for leave is foreseeable, and provide notice as soon as practicable when the need is unforeseeable. For intermittent leave, planned absences require as much advance notice as reasonably possible, and unplanned absences must be reported as soon as practicable in accordance with the employer’s usual procedures.

Parental leave can only be taken on a reduced or intermittent schedule if permitted by the employer.

Employees can apply for paid leave benefits in increments of full workdays or full work weeks. If an employee claims benefits for less than a full work week, their benefit will be calculated by dividing the weekly benefit amount by the number of days worked per week by the employee for the employer during the qualifying period.

Intermittent paid leave is not permitted in increments of less than a full workday.

If an employee takes at least a full work week of paid leave and a holiday falls during that week, the entire week will be counted against their paid leave time. However, if the employee is taking intermittent leave and takes less than a whole work week of paid leave, the holiday will only count against their paid leave allotment if they were scheduled to work the holiday and chose to use paid leave instead.

PFML Insurance benefits began on January 1, 2026. If you switch to the American Fidelity PFML Insurance private plan after that date, benefits will begin on the effective date of your private plan.

American Fidelity's PFML Insurance covers: 

• 12 weeks of paid leave annually to bond with and care for a new child (whether through birth, foster placement, or adoption)
• 6 weeks in a 24-month period to:
  • Address one's own serious health condition 
• 6 weeks in a 24-month period to:
  • Care for a family member with a serious health condition, qualifying military exigency, or address the impact of a family member's overseas military deployment

An employee is limited to 12 weeks of leave, regardless of the type of leave, in a 12-month period.

To be eligible for American Fidelity’s PFML Insurance private plan, the employee must meet all of the following criteria:

• The employee must work for a covered Delaware employer.
• An employee must have worked for the employer for at least 12 months.
• An employee has at least 1,250 hours of service with the employer during the 12 months before the leave (“hours of service” are hours actually worked and does not include time off for vacation, illness, or any other leave).
• The employee earned at least 60% of wages physically in Delaware each calendar quarter or worked out of state but is classified by the employer as eligible for Delaware Paid Leave.

You must determine how to recoup that payment, as PFML Insurance is the primary payer.

If this happens, you must add the employee to the census file like other employees. American Fidelity will determine eligibility for PFML Insurance benefits based on applicable requirements.

No, we cannot share the medical details regarding why we approved or denied the paid leave claim. This is because the information obtained to make that decision is Protected Health Information (PHI), which we cannot legally share. We can share certain general information about employees’ leave claims, such as approvals, denials, dates of approved leave, etc.

American Fidelity can help with time tracking of your employees’ FMLA claims in addition to their paid leave claims. Talk to your account manager for more details. Additional fees apply.

To be eligible, an employee must work primarily in Delaware (60% of their wages), have worked for their employer for at least 12 months, and have at least 1,250 hours of service (about 25 hours a week) in the most recent 12 months.

Employees who worked more than 60% of their time outside of Delaware may also be eligible if their employer classifies them as eligible for PFML Insurance benefits.

Through your online account, you will manage and pay your premiums at least monthly or more frequently to coincide with your payroll cycles.

You will not receive an invoice, but we will notify you when premiums are due. You’ll fill out an online premium worksheet every pay period and pay the required premiums. We recommend paying with electronic fund transfer (EFT) to ensure your payment is received and to speed up posting premiums.

How to Pay: To make your payment and submit your worksheet, follow these steps:

1. Log in to your online account
2. Select the Billing tab
3. Select Current Bills tab
4. Select the payroll period you’d like to pay
5. Complete the worksheet
6. Submit your worksheet and payment

You will not receive a bill. You will complete a premium worksheet each pay period and send your payment by EFT or check. To help ensure your payment is received and to assist with faster posting of premiums, we suggest paying by EFT instead of checks.

If you have American Fidelity’s PFML Insurance private plan and an employee files a claim for their own serious health condition, they have the option to withhold state and/or federal taxes for their benefits at the time of claim. An employee can notify us to change their withholding status for future benefit payments by calling 800-662-1113. Taxes cannot be withheld or refunded from benefit payments an employee has already received.

For other types of paid leave, American Fidelity cannot withhold taxes. Your employees may be responsible for paying taxes on the benefits they receive when they file their next tax return. To confirm their tax obligations, refer them to IRS Publication 505 or urge them to contact the Delaware Department of Revenue or their tax advisor. American Fidelity cannot offer tax advice or determine whether taxes should be withheld from an employee's paid leave benefits.

If an employee requested American Fidelity to withhold taxes from their benefits for their own serious health condition, this will be reported on their Form W-2. For all other types of paid leave, employees will receive a Form 1099-MISC from American Fidelity by the end of January each year.

Employers must renew their PFML Insurance private plan annually at least 30 days before the anniversary of the effective date of their plan. That renewal process may involve submitting updated plan details or confirmation of compliance. Your leave liaison will reach out to assist you through this process.

All employers, including those with approved private plans, are required to submit quarterly wage and hour reports for their employees. Employers will upload these quarterly reports through the employer's Delaware LaborFirst account.

For employers with American Fidelity’s PFML Insurance Tax Assist service, we will prepare and mail the Forms W-2 to your employees for their applicable medical leave benefits.

If you do not have our PFML Insurance Tax Assist service, we will provide third-party sick pay reporting for leave relating to an employee's own serious health condition. 

This report will have the information needed to adjust an employee's Form W-2. It will be available monthly, quarterly, and annually through your online account. For help filling out your Form W-2 using your third-party sick pay report, follow this guide.

American Fidelity will withhold federal and state income taxes from PFML Insurance taxable benefits that are considered third-party sick pay to the extent required, including the employee’s portion of FICA tax. The employer is responsible for remitting any additional state, local, or federal taxes, including W-2 reporting. Please consult an attorney or tax professional regarding your specific situation.

While we cannot provide tax or legal advice, current guidance indicates that benefits for leave taken for a reason other than the employee's own serious health condition are fully taxable, and medical leave benefits for an employee's own serious health condition are taxable based on employers’ contribution ratio. As such, leave for an employee’s own serious health condition are subject to third-party sick pay reporting and the employer will report a portion of those benefits on the employee’s Form W-2. For all other types of leave that are fully taxable to the employee, American Fidelity will issue a Form 1099 and send it to each employee when applicable after the end of the calendar year.

American Fidelity offer a paid Tax Assist service to help with employers' tax and reporting obligations relating to employees' leave for their own serious health condition (additional terms, exclusions, and fees apply). Reach out to your account manager for more information.

Generally, payroll deductions for PFML Insurance premiums are made on an after-tax basis.

Generally, the employer-paid portion of the taxable portion of medical leave benefits for the employee's own serious medical condition are subject to FICA and reported on Form W-2. Medical leave benefits are not subject to FICA, but the gross benefit must be documented on IRS Form 1099-MISC.

If you have paired PFML Insurance with Tax Assist, then you will not have to deal with Form W-2 adjustments. For employees' medical leave benefits, we will pay and remit the employer portions of FICA (Social Security and Medicare). We'll also send your employees a Form W-2 for the portion of their medical leave benefits that are considered taxable wages. For all other benefits, we will send employees a Form 1099-MISC reflecting the benefits they received.

If you don’t have Tax Assist, then we will withhold FICA tax, and income tax if requested, for medical leave benefits and provide you with reporting information as outlined below. We’ll also provide your employees with 1099-MISC for other benefits.

An employee's medical leave benefits are taxable based on the ratio of employer contributions to total employer and employee contributions.

The following benefits are subject to income tax:

• Parental leave benefits
• Family caregiver leave benefits
• Qualifying military exigency leave benefits
• The portion of medical leave benefits attributed to the employer's contributions

Note: If you don't have Tax Assist, you are responsible for Form W-2 reporting. All employers and employees should consult their own tax advisors regarding the tax consequences of PFML Insurance contributions and benefits.

For more information on adding PFML Insurance Tax Assist to your plan, contact your account manager.

Medical Leave Benefits: Taxable PFML Insurance benefits for an employee’s own serious health condition subject to federal and state income and employment taxes for the first six months of benefits. PFML Insurance employee medical leave benefits are taxable to the employee at the same percentage the employer pays toward the premiums. Employee medical leave benefits that are considered wages and taxable income and must follow third-party sick pay rules. Therefore, those wages must be reflected on the employee’s Form W-2 and applicable employer and employee payroll taxes must be paid.

If you have paired PFML Insurance with Tax Assist, we will handle the extra burden of tax filings related to PFML Insurance employee medical leave benefits. For employers, we will remit payment of the portion of Social Security and Medicare taxes due on PFML Insurance employee medical leave benefits each month to the Internal Revenue Service (IRS). For employees, we will withhold and submit the portion of Social Security and Medicare taxes and complete reporting requirements for taxable PFML Insurance benefits made by us. We will also issue a Form W-2 and include benefits paid and taxes withheld from the employees’ PFML Insurance benefits. For all other leave benefits (parental leave, family caregiver, and qualifying military exigency), American Fidelity will issue Form 1099-MISC to employees who receive these benefits. We are unable to withhold taxes from these types of benefit payments. Employees should plan accordingly and consult with their tax advisor. 

If you don’t have Tax Assist, the reason for using paid leave will affect how American Fidelity treats an employee’s benefit payments:

• Benefits for Family caregiver leave, parental leave, and qualifying military exigency leave are generally taxable income to the employee and will be reported on a Form 1099-MISC by American Fidelity. We are unable to withhold taxes from these types of benefit payments. Employees should plan accordingly and consult with their tax advisor.
• Medical leave benefits for an employee’s own serious health condition are treated like disability benefits for tax purposes. These benefits are taxable to the employee based on the ratio of employer contributions to total premium contributions. For example, suppose the employer pays the mandatory minimum contribution of 50% of the total contribution rate. In that case, 50% of the medical leave benefits an employee receives would be taxable income to the employee. American Fidelity is responsible for withholding the employee’s portion of mandatory FICA taxes and any voluntary taxes requested by the employee (federal and state income taxes). The employer must pay the employer portion of the FICA taxes on the medical leave benefits and complete any Form W-2 reporting required to reflect the employees’ taxable wages.

For more information about taxable PFML Insurance benefits, or to add Tax Assist to your plan, contact your account manager.

For employers who choose not to enroll in the PFML Insurance Tax Assist service, PFML Insurance benefits paid due to an employee's serious health condition will be reported to the employer through third-party sick pay reporting. These reports will show how much medical leave benefits are taxable to the employee. This allows employers to have the information to report the income on a Form W-2 and remit the employer share of FICA on the taxable portion of employees' medical leave benefits. Employers are encouraged to work with their tax advisors on the specific circumstances where it is appropriate to impute income to employees. American Fidelity does not provide tax advice. 

Reach out to your account manager for more information about Tax Assist and how it can help you with your PFML Insurance-related tax and reporting obligations.

Yes, we will send Form 1099 to each employee when applicable after the end of the calendar year.