After a three-month delay in implementation to allow employers to prepare for compliance, deductions under the Massachusetts Paid Family and Medical Leave will begin on October 1, 2019.
The program will be funded by both employer and employee payroll contributions and is intended to provide wage replacement and job protection to employees who need time away from their jobs to tend to family or medical needs.
Below are some details for employers about the program plus information about how the deductions will appear in OnPay.
For more information on the program, please contact the Massachusetts state customer care team:
Phone: (617) 466-3950
Notifying Qualified Individuals on or before September 30th, 2019
On or before September 30, 2019, employers are required to provide written notice of the Massachusetts PFML to their current qualified individuals. The notice, which may be provided electronically, must include the opportunity for an employee or self-employed individual to acknowledge receipt or decline to acknowledge receipt of the information.
The notice must include:
- Covered individual contribution rates
- Employer contribution rates (if applicable)
- Job protections
- Other provisions as outlined in M.G.L. c. 175M sec. 4
Note: Please use your Federal Employer Identification Number (FEIN) as your Employer ID Number on the “Employer Notice to Employee” and the “Employer Notice to Self-Employed Individual” Forms.
Employers must also post the required Paid Family & Medical Leave Poster on or before September 30th, 2019.
Quick Facts about the Paid Family and Medical Leave Program
- This statewide benefit plan requires employers to report employee wages, hours worked, and additional information every quarter.
- Collection of the premium begins in October 2019. Claims for leave benefits start in January 2021.
- Workers can take up to 26 weeks of paid leave for qualifying events.
- Businesses with fewer than 25 "Qualified Individuals" are not required to pay the employer portion of the premium but are required to collect and remit the employee portion of the premium and abide by all reporting requirements.
- Your Massachusetts workforce determines your responsibility as an employer for making contributions under the Paid Family and Medical Leave (PFML) law. For the most part, PFML follows the unemployment statute (M.G.L. c. 151A) for determining what qualifies as employment and excluded employment. For more information on determining your company's "Qualified Individuals" please visit the Massachusetts Paid Family Leave Site.
- As a result of the 3-month delay, the total contribution rate has been adjusted from 0.63% to 0.75%. This adjustment will ensure that full funding will be in place for the commencement of benefit payments in January 2021.
OnPay Employer FAQ
Will OnPay report and remit the employee and employer portions to the state?
Yes, OnPay will deposit the withheld funds for both the employee and employer portion and file the necessary reports to the state beginning January 1, 2020.
Will OnPay automatically calculate the Employer portion?
No, employers must opt-in to have their portion calculate. To opt-in, navigate to the "Settings" menu and select "Payroll Taxes". Scroll down to the "Massachusetts State Paid Family Leave and Medical Insurance Setup" Section and check the box "Remit employer portion".
When and where will I see the deduction in OnPay?
Employers will see this deduction begin for the employee automatically on all payrolls dated for October 1, 2019 and after. Employers must opt-in to have their portion calculate. Employers will see this deduction on the payroll register or employee check stub under "PFML Employee Withholding-Mass". The Employer portion will display as "PFML Employer Withholding-Mass".
Our company has self-employed individuals who are exempt from paying the employee portion, how do I exempt an employee?
To exempt an employee from the employee portion, navigate to the "Workers" section in your OnPay dashboard. Then click the employee's name. Select the "Withholdings" tab. Under the state and local options you will see the "FLI Exempt" option. If the employee is exempt, change the toggle to "True".