Contributions to Massachusetts Paid Family and Medical Leave (PFML) Program – Delayed for 3 Months

Required Withholding Now Starts October 1

The start date for required PFML contributions is now October 1, 2019. On that date, employers must withhold PFML contributions from employee-qualifying earnings.  Employers will be responsible for remitting employee and (if applicable) employer contributions for the October 1 to December 31 quarter through MassTaxConnect by January 31, 2020.

Contribution Rate Change

The PFML law requires that the Department adjust the contribution rate to offset the shorter period for collections resulting from the three-month delay. As a result, the total contribution rate has been adjusted from 0.63% to 0.75% of employee-qualifying earnings. This adjustment will ensure that total funding will be in place for the commencement of benefit payments in January 2021.

Timeline Extended for Required Employee Notices

Employers now have until September 30, 2019, to notify all covered individuals of their rights and obligations under PFML. Check the Department website at mass.gov/pfml for updated notices to provide to your workforce in the coming days.

Timeline Extended for Exemption Applications

Employers that offer paid leave benefits that are at least as generous as those required under the PFML law may apply to the Department for an exemption from making contributions. Employers will now have until December 20, 2019, to apply for an exemption that will excuse them from the obligation to remit contributions for the entire period commencing with the October 1 start date.

PFML Regulations Will Be Final and Effective on July 1, 2019

The final regulations will be posted on the Department website at mass.gov/pfml on Monday, June 17, 2019. The rules will be formally published under 458 CMR 2.00 DEPARTMENT OF FAMILY AND MEDICAL LEAVE.

More about PFML

Beginning in 2021, PFML will provide temporary income replacement to eligible workers who are welcoming a new child into their family, dealing with a severe illness or injury, caring for an ailing relative, or dealing with complications resulting from the military deployment of a family member. The program is funded by payroll-based contributions from employers, employees, and specific contract workers.

To learn more about PFML, including information about how this new program impacts your organization, more background on exemptions, and details on contribution levels, please visit mass.gov/pfml.

Source:  www.mass.gov

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