June 7, 2019
In 2018, Massachusetts signed into law a statute that provides paid family leave and medical leave (PFML) benefits to workers. Employers and covered individuals must begin making contributions on July 1, 2019, with benefits becoming available to employees in 2021.
Here are some highlights of the new law.
The contribution rate is 0.63% on the first $128,400 of a covered individual’s annual earnings and is split between medical leave contribution (0.52%) and family leave contribution (0.11%).
You must notify all covered individuals of the PFML law by June 30, 2019 (See attachments for notice of benefits available and employer notice to the employee).
Employers with 25 or more covered individuals are required to pay 60% of the medical leave contribution (which is 0.52%). Employers are required to deduct the remaining 40% of the medical leave contribution from their covered individuals’ wages.
Employers with fewer than 25 covered individuals are not required to pay 60% of the medical leave contribution. Employers are required to deduct 40% of the medical leave contribution from their covered individuals’ wages.
All Employers are required to deduct from covered individuals’ wages 100% of the family leave contribution (which is 0.11%).
Start deducting family and medical leave contributions from covered individuals on July 1, 2019.
Employers will be required to remit contributions to the Department of Family and Medical Leave of 0.63% of eligible payroll through their payroll service or MA Department of Revenue’s MassTaxConnect.
Employers who already provide a paid leave benefit to their workforce may be eligible to receive an exemption from collecting, remitting and paying contributions for paid family or medical leave under the state’s PFML law.
Under the PFML law, your Massachusetts 1099-Misc contractors are counted as covered individuals if they make up more than 50% of your total workforce (W2 employees and 1099-Misc contractors combined).
Final regulations on the PFML will be issued on July 1, 2019. Information and updates can be found at mass.gov/dfml.
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