The Massachusetts Legislature and Governor have enacted legislation to delay the start of employer and employee contributions to the Paid Family and Medical Leave program (PFML) by three months to October 1, 2019.
Required Withholding Now Starts October 1
The start date for required pay roll deductions was postponed from July 1, 2019 to October 1, 2019. On October 1st, employers must begin withholding 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 of Family and Medical Leave (“Department”) adjust the contribution rate to offset the shorter period for collections that will result 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.
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. Employers who already had employees sign the notice form previously provided by the Department, will need to have the employees sign a new form. We suggest that you wait to see if there are other changes before presenting a new form to employees.
If you have questions regarding paid family and medical leave, please contact Andrew M. Kepple, email@example.com, or Michael P. Doherty, firstname.lastname@example.org, or call us at 508-541-3000.
This blog is for informational purposes only. It should not be considered legal advice. All those who read this blog should seek the advice of a professional before taking action based upon any information provided herein.
© 2019 Doherty, Dugan, Cannon, Raymond & Weil, P.C.