Menu

Compliance Deadline Extended Under the Massachusetts Paid Family Medical Leave Law

Reading Time: 4 minutes

Share:

Share on facebook
Share on twitter
Share on linkedin

RECENTLY, MASSACHUSETTS IMPLEMENTED THE PAID FAMILY AND MEDICAL LEAVE LAW GOING INTO EFFECT ON JULY 1, 2019 THAT WASSIGNED INTO LAW ON JUNE 28, 2018.

The Massachusetts Paid Family and Medical Leave Law (PFML) provides wage replacement to workers to help them bond with a child, care for themselves or a family member with a serious health condition or help relieve family pressures when someone is called to active military service. The program mandates reporting requirements, premium, collection and remittance. Below is information regarding this new paid family leave law:

  • Imposes both employee deductions and employer contributions
  • Employers may elect to pay all or part of the worker’s portion as a benefit to the worker
  • The total (EE + ER) rate is 0.63% of taxable wages and is capped at the Social Security wage limit of $132,900 for 2019

Action Items

Before June 30, 2019, Employers and Covered Business Entities are required to provide written notice to their current workforce of benefits and contribution rates. This can be done by:

While the Massachusetts Department of Family and Medical Leave (Department) doesn’t provide a template for the notice, it should include the following:

  • An explanation of the availability of family and medical leave benefits
  • The employee’s and employee’s contribution amount and obligations
  • The employer’s name, mailing address and employer identification number assigned by the Department
  • Instructions on how to file a claim for benefits
  • The contraction information of the Department

Failing to provide the required information listed above can result in fines of $50 per individual for a first violation and $300 per individual for a subsequent violation.

As of July 1, 2019, employers are responsible for the following in addition to notifying their workforce about the PFML benefits:

  • Reporting wages paid, payment of contract services rendered, and other information about your workforce quarterly
  • Determining contribution amounts for your workforce and for any contribution due from you as an employer where applicable. Premiums are 0.63% of gross wages paid up to the Social Security wage limit. The premiums for the family leave portion and the medical leave portion will be calculated and withheld separately as outlined below.
  • The initial medical leave contribution will be 0.52% of gross wages. Up to 40% of the contribution can be deducted from employee wages (0.208%).
  • The initial family leave contribution will be 0.11% of gross wages. Up to 100% of the contribution can be deducted from employee wages.
  • Making deductions to cover worker contributions from payments you make to your workforce, wither as wages or as payments for services from Massachusetts 1099-MISC contractors.
  • Ineligible workers will need to be excluded from the calculations.

For an example of how the withholding for the premium is calculated, please refer to Mass.gov

Starting January 1, 2021, eligible workers can begin taking leave for qualified family and medical events.

  • Workers can take leave for qualified events for up to:
  • 12 weeks of paid family leave to bond with a new child, care for a family member with a serious health condition or help relieve family pressures when someone is called to active military service.
  • The initial family leave contribution will be 0.11% of gross wages. Up to 100% of the contribution can be deducted from employee wages.20 weeks of paid medical leave for care for themselves with a serious health condition.
  • 26 weeks of paid family and medical leave to care for any family member with a serious health condition.

Refer to Mass.gov for additional information.

If you have any questions or would like additional information, please contact our HCM Consultants or request a consultation at https://www.sikich.com/human-resources/

Sources

Alice Kokodis, S. Berube. Updated Massachusetts Paid Family and Medical Leave Act Regulations Offer Additional Guidance as July 1 Effective Date Draws Near. Littler. April 3, 2019. https://www.littler.com/publication-press/publication/updated-massachusettspaid-family-and-medical-leave-act-regulations

Christopher Kaczmarek, A. Kokodis, S. Berube. Massachusetts extends critical compliance deadlines under the paid family medical leave law. Littler. May 2, 2019. https://www.littler.com/publication-press/publication/massachusetts-extends-criticalcompliance-deadlines-under-paid-family

Employer responsibilities. A guide to paid family and medical leave for massachusetts employers. 2019. Mass.gov. https://www.mass.gov/guides/a-guide-to-paid-family-and-medical-leave-for-massachusetts-employers#-employer-responsibilities-

Neil Koplitz

Neil Koplitz

MANAGING DIRECTOR
T: 630.364.7948
E: neil.koplitz@sikich.com

Karlie Hinman SHRM-CP

Karlie Hinman SHRM-CP

HR CONSULTANT
T: 630.210.3077
E: karlie.hinman@sikich.com

This publication contains general information only and Sikich is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or any other professional advice or services. This publication is not a substitute for such professional advice or services, nor should you use it as a basis for any decision, action or omission that may affect you or your business. Before making any decision, taking any action or omitting an action that may affect you or your business, you should consult a qualified professional advisor. You acknowledge that Sikich shall not be responsible for any loss sustained by you or any person who relies on this publication.

SIGN-UP FOR INSIGHTS

Upcoming Events

Latest Insights

About The Author