ConnectPay’s Guide to Understanding thePaid Family Medical Leave Act of Massachusetts
ConnectPay is an independent provider of payroll services, HR, and custom timekeeping solutions for small businesses. We blend first-name-basis service with smart technology to integrate with the insurance, retirement and benefit needs of thousands of small businesses.
The Massachusetts Paid Family and Medical Leave (PFML) program begins in 2021, when Massachusetts offers paid family and medical leave benefits to eligible workers.
In this guide, you’ll find answers to frequently asked questions, links to important government resources and podcasts by ConnectPay experts that explain this legislation and what you need to do now to prepare for October 1st, when payroll deductions begin.
In 2018, Massachusetts signed into law a statute that provides paid family and medical leave (PFML) benefits to workers. Benefits will become available in 2021, and the taxes will begin deducting October 1st, 2019.
My business has 25 or more employees. What does this mean for me?
Businesses with 25 or more qualified workers are required to make an employer contribution in addition to the employee portion deducted from workers’ pay. The employer contribution is .312% of payments up to the social security limit. (.60% of .52% of medical leave tax).
When must I notify my Employees of this change?
Employees must be notified by June 30th, 2019. There is a poster that can be downloaded from the state, which explains the program. There is also an employee notification document that needs to be completed by the employer and acknowledged by the employee. There is a separate notification form for qualified 1099’s.
I employed 1099 contractors last year that worked as contractors. Do I need to make deductions for them retroactively?
There are no retroactive deductions for employees or 1099 contractors. Everything begins on July 1st 2019.
My business has fewer than 25 employees. What does this mean for me?
You are still required to notify your workforce, and begin deducting the tax from your employees beginning on July 1st, 2019, and prepare to remit those taxes by Oct 31, 2019.
