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If you have employees in Massachusetts, deadlines are approaching for the new Massachusetts paid family leave law. Starting on October 1, 2019, employers in Massachusetts are required to begin withholding payroll taxes for the state-run Paid Family and Medical Leave program.
By September 30, 2019, you must post this poster in a highly visible location and distribute a written notice about the program to each employee. Compliant written notices are available on this page, under “Additional Resources,” and may be distributed electronically. Employers are required to collect signed acknowledgments from employees affirming that the notice was received; these may be electronic as well.
The state has numerous resources for employers here, but some FAQs are below.
Which workers are covered?
- All Massachusetts employees, whether full-time, part-time, temporary, or seasonal
- Massachusetts independent contractors if independent contractors make up more than 50% of your total Massachusetts workforce.
How much do I remit, and how much do I, the employer, pay toward the total?
Depending on your size, you will remit an amount equal to 0.75% or 0.378% of the gross wages and payments for all covered workers in your workforce. Here’s the breakdown:
If you had an average of 25 or more covered workers last year
You will remit a total of 0.62% of an employee’s gross wages for medical leave. Sixty percent of that must be paid by you, the employer (0.372%). The remaining 40% of the contribution (0.248%) comes from the employee’s wages.
All of the 0.13% for family leave comes from the employee’s wages.
If you had fewer than 25 covered workers last year
You will remit 0.248% of an employee’s gross wages for medical leave. All of it will come from the employee’s wages.
All of the 0.13% for family leave comes from the employee’s wages.
When and where do I remit payment?
You should remit contributions through the Department of Revenue’s MassTaxConnect beginning January 1, 2020.
What if I already offer paid time off benefits?
If you offer a more generous benefit, you may be exempt from the program, but you will need to apply for approval of your plan through your MassTaxConnect account. The deadline to file for an exemption for first-quarter contributions is December 20, 2019.
The easiest way to be compliant with labor laws and HR regulations like this is to be a GTM client. We’ll keep you informed of new rules and changes to laws so you can focus on growing your business. Request a free quote today.
