Massachusetts Paid Family and Medical Leave

In 2018, Massachusetts established the Paid Family and Medical Leave Act, a statewide paid family and medical leave program financed by employer and employee contributions. In 2019, leadership agreed to delay the required contributions for three months, from July 1 to Oct. 1, 2019. The paid family and medical leave program is funded by a mandatory payroll tax of 0.75% (adjusted from .63%) on the first $132,900 of an employee’s wages, to be adjusted annually. The payroll tax will be split between employers and employees. However, for employers with fewer than 25 employees, no employer contribution is required for family or medical leave premiums.

An employer is considered a Massachusetts employer with respect to services performed by a covered individual for the employer if the service is:

Localized in Massachusetts. Service is localized in Massachusetts if the service is performed:
(1) Entirely within Massachusetts; or
(2) Both within and outside of Massachusetts, but the service performed outside of Massachusetts is incidental to the individual’s service within Massachusetts (for example, is temporary or transitory in nature, or consists of isolated transactions); or

Not localized in any state, but some part of the service is performed in Massachusetts and:
(1) The individual’s base of operations is in Massachusetts or, if there is no base of operations, then the place from which the service is directed or controlled is within Massachusetts; or
(2) The individual’s base of operations or place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual’s residence is in Massachusetts.

Effective September 30, 2019, employers must:
1) conspicuously post a workplace notice that informs employees of benefits provided under the paid family and medical leave program. The DFML provides a model poster for employers to use.
2) provide each new hire with written notice detailing the new family and medical leave program within 30 days from the employee’s start date. The employer must obtain each new hire’s written acknowledgement of receipt of the information above, or have the employee sign a statement that he or she refused to sign the acknowledgement. The DFML provides a model notice for employers to use.

Effective October 1, 2019, employers must begin remitting contributions to the trust.

Refer to the below bulletin for details and contact your NEEBCo representative with questions.

Massachusetts Paid Family and Medical Leave Contributions Delayed Until Oct 1 2019

Massachusetts PFML Employer FAQ’s