Starting on October 1, 2019, employers in Massachusetts were required to begin withholding payroll taxes for the state-run Paid Family and Medical Leave program.
This is a reminder that the benefits available through the Massachusetts Paid Family Medical Leave begin on January 1, 2021. In accordance with these regulations, employers are required to provide all new employees with the applicable Rights and Obligations under the Massachusetts Family and Medical Leave Law. By September 30, 2019, employers were required to post “Notice of Benefits Available Under M.G.L. Chapter 175M Paid Family and Medical Leave” in a highly visible location and distribute a written notice about the program to each employee.
Employers are required to collect signed acknowledgements from employees affirming that the notice was received; these may be electronic as well. The state has numerous resources for employers here, but we’ve listed the most frequently asked questions below.
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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.
When and where do I remit payment?
You should remit contributions through the Department of Revenue’s MassTaxConnect beginning January 1, 2020. Associated HCM is escrowing and submitting these payments on clients behalf.
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.