As our valued customer, we want to make you aware that Massachusetts is adding a new tax known as Paid Family and Medical Leave.
ConnectPay will be ready to start withholding contributions for this new tax July 1st, 2019.
Here are a few key facts:
- 1) Withholding from Employees begins July 1st.
- 2) Employers with less than 25 qualified employees, will deduct payroll contributions from covered individuals wages.
- 3) Employers with 25 or more qualified employees, in addition to withholding from employees, will also make an employer contribution.
- 4) The overall tax is .63% of wages up to the annual social security limit. 0.11% is the family leave portion. 0.52% is the medical leave portion.
Employees must be notified, and the new posting hung in the workplace by June 30th, 2019. We highly recommend visiting www.Mass.gov/DFML to familiarize yourself with this new tax. Updates to this new law are posted daily and the final law is not expected to be released until July 1st, 2019.