As Massachusetts employers are aware, on January 1, 2021, the state rolled out its Paid Family and Medical Leave (PFML) program to implement the first phase and most benefits available to employees for managing a personal illness or serious injury as of that date. Then again, the second phase of the program, with benefits to care for a family member with a serious health condition, was made available as of July 1, 2021.  The program benefits must be provided by all Massachusetts employers regardless of size.

Funding for this program is based upon contribution percentages from both employee wages and the employers themselves.

As of January 1, 2022, the maximum employee weekly benefit amount is increasing from $850.00/week to $1,084.31/week, while the contribution rate has decreased from .75% to 0.68% of eligible wages.

Employers with 25 or more covered individuals must remit a contribution to the Department of Family and Medical Leave of 0.68% of eligible wages. Up to 0.12% of eligible wages for an employee’s family leave contribution may be withheld, and 0.224% of eligible wages for an employee’s own medical leave contribution may be withheld. The remaining 0.336% is the required employer contribution.

Employers with fewer than 25 covered individuals must remit a contribution rate of 0.355% of eligible wages. Up to 0.12% of eligible wages for an employee’s family leave contribution may be withheld, and 0.224% of eligible wages for an employee’s own medical leave contribution. For employers with fewer than 25 covered individuals, there is no employer share of medical leave required.

Employer policies and payroll systems must be reflective of these changes.  As such, Prestige will make sure that clients affected by these revised employer contribution percentages contain the proper set-ups within their individual payroll systems. Should you have any questions or concerns about this update, please reach out to your HRBP or Payroll Specialist as needed.