The information provided on this website is for informational purposes only and is not intended to provide, and should not be relied upon for tax, legal, or other professional advice. Further, the information on this website may or may not reflect the most current legislative or regulatory PFL requirements. You should not act or rely upon this information without consulting your own professional advisor.
Massachusetts PFML: It's Time to Focus on Deductions
Do you have employees in Massachusetts? If so, here are two important dates for the state's Paid Family and Medical Leave program.
July 1, 2019 ― Employers must begin payroll deductions to fund the state’s PFML program.
Jan. 1, 2021 ― Employees can start receiving benefits for most types of leave.
How can you get ready? Keep reading for information to help you prepare.
1) Understand What You Can Deduct
The contribution rate is 0.63 percent on the first $132,900 of an individual's annual earnings. But an employer may deduct from an employee’s wages to cover the employee's share.
How does the rate break down? The medical leave contribution is .52 percent and the family leave contribution is .11 percent. Employers and employees can share the medical leave portion — 60 percent from the employer and 40 percent from the employee. Family leave can be completely employee-funded. Be sure to read the next section where we discuss how these deduction rules differ based on company size.
Employers can decide to fund the entire contribution, but they can’t deduct more than the above percentages from their employees.
2) Know the Requirements for Your Size Company
Employers with 25 or more employees can deduct a portion from the employee to make up the total .63 percent of payroll, or they can make the full contribution themselves. The family leave portion can be fully employee-funded, but the medical leave portion would be split.
Employers with fewer than 25 employees may deduct the full amount from employee pay, but they don't have to pay the employer portions for the medical leave deduction.
Keep Tabs on Rules and Dates Each Year
Readiness starts with knowing the situation. Things may change from year to year, so we'll continue to cover the Massachusetts PMFL program. Be sure to check back here for more updates.
Watch This Space
The Standard is committed to partnering with employers across the country. We're here to help you anticipate and understand ever-evolving paid family leave regulations.
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