If understanding Paid Family Medical Leave (PFML) and your obligations as an employer are not on your to-do list, then it should be because doing so is essential to keeping your business compliant with state laws and supporting your employees. For those who’ve chosen a private plan over the state program, it’s worth taking time to understand a few important details to keep everything running smoothly. Before we dive in, let’s clear up a common point of confusion: PFML isn’t the same as the Federal Family and Medical Leave Act (FMLA).
- FMLA offers job protection for qualifying leave, but it’s unpaid.
- PFML, on the other hand, is run at the state level, provides paid benefits, and is funded through payroll contributions.
Currently, PFML requirements vary from state to state, and eligibility is determined by the state in which the employees work, not where your business is based. Some states allow employers to opt out of the state plan if they offer a private plan that meets or exceeds state standards.
You’ll find a full list of which states offer PFML and how the programs differ in this breakdown from the Bipartisan Policy Center.
In Massachusetts, for example, it is mandatory for employers to offer Paid Family and Medical Leave. These contributions come from employee paychecks, and employers must withhold them.
If you have 25 or more covered workers (including employees and certain contractors), you must also send an employer contribution. If you have fewer than 25, only employee contributions are required. Each person’s contribution is capped at the Social Security taxable maximum.
What Is a Private PFML Plan?
In states with a PFML program, employers may be able to apply for a private plan exemption or substitution, depending on the specific language used in their state’s regulation. These private plans can be self-insured or administered by a third-party carrier but must offer benefits equal to or greater than what the state program provides.
But opting out doesn’t mean checking out. Once you have been approved for a private plan, you’re still responsible for ongoing compliance, including renewals, employee communications, and payroll.
Switching Plans? Don’t Forget to Notify Employees
Whether you’re moving from the state plan to a private one or returning to the state plan after a private exemption lapses, you must notify your employees.
Why it matters:
- Employees need to know how and where to apply for benefits when they need them.
- The notice should include the effective date of the change and how the new plan affects their access to paid leave.
- In some states, written notice is required by law within a certain time frame before the change.
Even if it’s not a legal requirement in your state, it’s a best practice that saves you and your employees from confusion (and missed benefits).
Don’t Miss Your Renewal Window
Private PFML exemptions aren’t forever. In Massachusetts, for example, they’re only good for one year, and you’ll need to reapply annually during a specific renewal window. According to Mass.gov, renewal requests must be submitted between 60 and 30 days before the plan’s expiration.
Missing that window means your business reverts to the state system, where state contributions are automatically withheld from payroll, which can affect your budget almost immediately.
Private PFML exemptions don’t last forever. For example, in Massachusetts, an approved private plan exemption is valid for one year. Employers must reapply every year during a specific renewal window—between 60 and 30 days before the plan expires, according to Mass.gov.
If you miss that renewal period, your business automatically reverts to the state PFML system, and state contributions will begin to be withheld from employee payroll right away—potentially impacting your budget.
In Maine, the concept is similar, but the timing differs. There, a private plan is referred to as a “substitute plan.” Once approved, it remains valid for three years before it must be recertified.
Maine’s PFML program is expected to launch in 2026, and while details are still being finalized, early indicators suggest it will closely mirror the Massachusetts model.
Your Payroll Provider Can’t Read Your Mind
This might sound obvious, but it’s one of the most common pain points we see: If you’re making changes to your PFML status, your payroll provider needs to know.
Here’s why:
- If you don’t tell your payroll provider that you’ve switched PFML plans (for example, if you leave the state program for a private one), they may keep withholding state contributions by mistake.
- If you miss your reapplication window and your provider isn’t informed, your payroll system won’t automatically update to reflect your return to the state plan.
In short, don’t wait for your payroll system to catch up. It won’t; it’s your responsibility to inform them of any changes to your plan.
Staying Private? You Still Need to Act
If you’re planning to stick with your private plan, remember that managing your PFML plan requires ongoing attention, not a hands-off approach. While the state typically sends a reminder email, it’s easy for that message to get lost in a crowded inbox. If you set up a calendar reminder a few months before your renewal date and loop in your payroll provider early, you’ll stay ahead of deadlines and keep your coverage uninterrupted.
How CommPayHR Helps Employers Stay Ahead of PFML Compliance
Running a private PFML plan comes with perks, but also responsibilities. At Commonwealth Payroll & HR, we work proactively with our clients to help them navigate PFML requirements, especially those with private plans. Whether it’s tracking renewal windows, updating plan statuses, or syncing your payroll deductions accordingly, we keep the details from falling through the cracks.
Need help understanding your PFML responsibilities or making sure your systems are set up correctly? That’s exactly what we’re here for. CommPayHR provides personalized guidance backed by the tools and expertise you need to feel confident and keep your business running smoothly. Let’s talk about how we can support your private plan strategy before your next deadline sneaks up.
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