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Three-Month Delay, Rate Change for Massachusetts PFML Contributions

BY: APA Staff | 06/20/19

There will be a three-month delay for withholding and remitting Massachusetts paid family and medical leave (PFML) contributions. Initially scheduled to begin July 1, contribution withholding will now begin on October 1 [S.B. 2255, L. 2019; Gov. Charlie Baker, Press Release, 6-11-19].

In a notice to employers, the Massachusetts Department of Family and Medical Leave announced the delay to allow employers more time to prepare their organizations and workforces for PFML.

Required Withholding Starts October 1

Effective October 1, 2019, employers must begin withholding PFML contributions from qualified employee earnings. Employers will be responsible for remitting employee and (if applicable) employer contributions for the fourth quarter (October 1-December 31) through MassTaxConnect by January 31, 2020.

Contribution Rate Change

To offset the shorter period for collections that will result from the three-month delay, the contribution rate has been adjusted to 0.75% of qualified employee earnings (formerly 0.63%). The adjustment will ensure that full funding will be in place for the start of benefit payments in January 2021.

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