The Massachusetts Department of Family and Medical Leave (DFML) has announced the 2023 contribution rates for the state’s Paid Family and Medical Leave program.
The Details:
Paid Family and Medical Leave (PFML) is a state program that offers up to 26 weeks of paid leave for family or medical reasons to eligible employees (including former employees) in Massachusetts. PFML is funded through employee and employer contributions. You may find additional information on the PFML here: Employer's Introduction to Paid Family and Medical Leave | Mass.gov
2023 - Employers with 25 or more covered individuals
Employers with 25 or more covered individuals will be required to remit a contribution to the DFML of 0.63% of eligible wages. This contribution can be split between covered individuals’ payroll or wage withholdings and an employer contribution. (In 2022, the rate is 0.68%).
For Family Leave, up to 100% of the family leave contribution can be withheld from a covered individual's wages (0.11% of eligible wages). (The rate is 0.12% in 2022).
For Medical Leave, up to 40% of the medical leave contribution can be withheld from a covered individual's wages (0.208% of eligible wages). Employers are responsible for contributing the remaining 60% (0.312% of eligible wages). (These rates in 2022 are 0.224% and 0.336% respectively).
2023 - Employers with fewer than 25 covered individuals
Employers with fewer than 25 covered individuals must remit an effective contribution rate of 0.318% of eligible wages. This contribution rate is less because small employers are not required to pay the employer share of the medical leave contribution, reducing the total contribution amount. (The rate was 0.344% in 2022).
Small employers are responsible for remitting the funds withheld from covered individuals' earnings but are under no obligation to contribute themselves. However, they may elect to cover some or all of the covered individuals' share.
For Family Leave, up to 100% of the family leave contribution can be withheld from a covered individual's wages (0.11% of eligible wages). (The rate is 0.12% in 2022).
For Medical Leave, up to 100% of the medical leave contribution can be withheld from a covered individual's wages (0.208% of eligible wages). There is no employer share for employers with fewer than 25 covered individuals. (The rate in 2022 is 0.224%).
Next Steps:
Effective with wages paid in 2023, employers must adjust their withholding for the Massachusetts PFML as outlined above.
For a copy of the Massachusetts PFML announcement, please click on the following link:
Paid Family and Medical Leave employer contribution rates and calculator | Mass.gov
Have Questions?
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