Less than three weeks before the next phase of the Paid Family and Medical Leave was set to begin, Massachusetts businesses have been given a brief reprieve.
Employers were supposed to begin withholding PFML contributions starting on July 1st. The start date has been pushed back by three months, to October 1st, in a move designed to give businesses more time to prepare for the program. Governor Baker, Senate President Karen Spilka and House Speaker Robert DeLeo released the news in a joint statement.
Under the PFML law, most employers are required to remit and pay contributions for covered individuals. Some employers will be required to pay a share of their employees’ medical leave contributions. Currently the contribution rate is set at 0.63% of an employee’s wages. Because the 2021 effective date for PFML benefits is expected to remain unchanged, the contribution rate will likely be raised to make up for the missing July, August and September funds. The new contribution rate is 0.75%. All employers are required to notify employees in writing about PFML benefits by September 30.
We’ll continue to update you as more information is made available.
If you missed our PFMLA webinar, now might be a good time to watch the recording.
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