On March 29, 2019, the Executive Office of Labor and Workforce Development published a new regulation declaring Massachusetts employers are now required to provide paid family and medical leave (PFML) benefits to its Massachusetts-based workers. Consequently, employers will be asked to pay financial contributions to the Department of Family and Medical Leave starting January 31, 2020. This is three months later than its original start date October 31, 2019. To comply with this new law, employers must obey to a list of requirements.
From now until December 20, 2019 - Apply for an exemption
If an employer already provides generous paid leave benefits to its workforce, they can apply for an exemption from collecting, remitting, and paying PFML contributions. To be granted an exception, the employer’s plan must be greater than or equal to the benefits provided by the PFML law. Additionally, this employer must offer the same rights and protections that are listed under this law. All applications for exemptions must be submitted by December 20, 2019. Learn more at www.mass.gov/dfml.
By September 30, 2019 – Inform your MA employees
The employer must notify its entire workforce of the PFML law by September 30, 2019. To do so, employers must post posters of Paid Family and Medical Leave Workplace in the work site. Besides, employers must provide a written notice of contributions, benefits, and workforce protections to all its covered individuals in the workforce. To finish, they must collect a signed acknowledgment from each covered individual. To administer this initiative expeditiously, employers can find all the materials they need at www.mass.gov/dfml/notices.
Starting October 1, 2019 – Start recording deductions
Start deducting family and medical leave payroll contributions for all your MA W-2 employees. If your total workforce is made up of 50% or more of MA 1099-MISC contractors, you need to pay dues for them as well. No matter the size of your workforce, you are still responsible for remitting contributions on your covered individuals’ behalf.
By January 31, 2020 – Pay your contributions
Employers must remit contributions through the Department of Revenue’s MassTaxConnect. Based on the make-up of your workforce, employers may be responsible for remitting contributions for both Massachusetts W2 employees (full-time, part-time, seasonal) and Massachusetts 1099-MISC contractors. As a result, employers are required to contribute 0.75% of the gross wages or other payments to all covered individuals in the Massachusetts workforce. All contributions must be remitted to the Department of Revenue’s MassTaxConnect by January 31, 2020 for the quarter October 1 to December 31, 2019.