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Massachusetts Paid Family and Medical Leave

  • Updated

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. The program is jointly funded by employees and employers, though small employers may not be required to contribute the employer portion of the tax. Employers may also choose to "pick up" the employee portion for some, or all employees.

Employer pick-up

An "employer pick-up" is when an employer pays the employee portion of required paid leave insurance contributions. Because these contributions would normally be deducted from employee pay, an employer pick-up is considered "additional compensation" by the IRS.

As of January 1st, 2026, when employers "pick up" their employees' premium payment for PFML plans, these pick-up contributions are considered taxable income, and are included in subject wage amounts. 

Contribution rates

  • Employers with fewer than 25 covered employees - 0.46%
  • Employers with 25 or more covered employees - 0.88%

What you need to know

  • This statewide benefit plan requires employers to report employee wages, hours worked, and additional information every quarter.
  • Workers can take up to 26 weeks of paid leave for qualifying events.
  • Employers must withhold PFML contributions from employees’ paychecks. 
  • Individual contributions are capped by the Social Security taxable maximum.
  • Employers must contribute at least the minimum share of the contribution described below; however, they may choose to cover a larger share of the contribution for some or all of their employees (employer pick-up).
  • Employer pick-up amounts are subject to tax, according to the IRS.
  • Businesses with fewer than 25 qualified individuals are not required to pay the employer portion of the premium, but are still 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.

Employer pick-up

An "employer pick-up" is when an employer pays the employee portion of required paid leave insurance contributions. Because these contributions would normally be deducted from employee pay, an employer pick-up is considered "additional compensation" by the IRS.

As of January 1st, 2026, when employers "pick up" their employees' premium payment for PFML plans, these pick-up contributions are considered taxable income, and are included in subject wage amounts. 

More information at Paid Leave Massachusetts→

 

Employer FAQ

  • Yes, OnPay will deposit the withheld funds for both the employee and employer portion and file the necessary reports to the.
  • No, employers must opt-in to have their portion calculate. To opt-in, go to Company, then Payroll Taxes. Under "Massachusetts State Paid Family Leave and Medical Insurance Setup", and check "Remit employer portion".

  • Employers saw this deduction begin for their employees 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".

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  • To exempt an employee from the employee portion, go to their profile in the Workers tab,and select "Withholdings".  Under the state and local options you will see "FLI Exempt". If the employee is exempt, change the toggle to "True".

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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:

  • Benefits
  • 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.

 

State resources and support

For more information on the program, please contact the Massachusetts state customer care team:

 

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