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In an effort to help businesses in Massachusetts be better prepared for new Paid Family and Medical Leave (PFML) regulations, the state legislature has delayed the start of employer and employee PFML contributions by three months. Employers must begin withholding PFML contributions from employee earnings on October 1, 2019.
Because of the delay, the state has changed the contribution rate to offset the time lost during the collection period, so they can reach their required funding total when benefits become available in January of 2021. The contribution rate has now been increased from .63% to .75% for employee earnings that qualify. Employers have also received an extension to notify their employees of the PFML changes to September 30, 2019. This is the second time the state has given employers an extension to notify employees. For employers who wish to apply for an exemption from making contributions, that deadline has been pushed back by December 20, 2019.
The Massachusetts Department of Family Medical Leave says PFML will provide temporary income replacement to eligible workers who are welcoming a new child into their family, dealing with a serious illness or injury, caring for an ailing relative, or dealing with complications resulting from the military deployment of a family member. The program is funded by payroll-based contributions from employers, employees, and certain contract workers.
If you have questions about Massachusetts Paid Family and Medical Leave and how it impacts you and your business, contact a member of your DGC Client Service Team or Dawn Hagman, SPHR, SHRM-SCP at 781-937-5345 / firstname.lastname@example.org.