The Massachusetts Paid Family and Medical Leave program is 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.
What we'll cover
- Notifying Qualified Individuals
- Quick Facts about the Paid Family and Medical Leave Program
- OnPay Employer FAQ
Notifying Qualified Individuals
Employers are required to provide written notice of the Massachusetts PFML to their 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.
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 began in October 2019, after a 3-month delay to allow employer implementation. Claims for leave benefits started 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 for 2021 was adjusted from 0.63% to 0.75%. This adjustment ensured that full funding was 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 saw this deduction begin for the employee automatically on all payrolls dated for October 1, 2019 and after. However, 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".
For more information on the program, please contact the Massachusetts state customer care team:
Phone: (617) 466-3950