Background
The Massachusetts Paid Family and Medical Leave (PFML) law requires all private Massachusetts employers to provide covered individuals with paid family and medical leave, funded through a payroll tax that began in October 2019. Employees are eligible for MA PFML if they meet the financial eligibility requirements. This law provides paid, job-protected leave, with no employee hours or service requirement.
Summary
Each year, the Department of Family and Medical Leave will assess contributions and benefit amounts. The changes outlined below will go into effect on January 1, 2022:
Average Weekly Wage
The amount for which individuals taking leave may be compensated is based upon the state’s average weekly wage. Starting January 1, 2022, the average weekly wage will increase from $1,478.78 to $1,694.24.
Benefit Amount
The maximum benefit will remain at 64% of the average weekly wage, however the maximum weekly benefit increased from $850 to $1,084.31 per week. Individuals who receive their benefit from multiple employers will receive the maximum benefit amount in aggregate.
Contribution Rates
Contribution rates for MA PFML will be decreasing from 0.75% to 0.68% in 2022.
- Employers with 25 or more employees may withhold 0.12% of eligible wages for the family portion of the leave, and an additional 0.224% of eligible wages for the medical portion of the leave. Employers are required to contribute the remaining 0.336% to the medical portion of the leave.
- Employers with 24 or fewer employees do not need to contribute any portion of the family or medical leaves. However, they are required to withhold 0.12% of eligible wages for the family portion of the leave, and an additional 0.224% of eligible wages for the medical portion of the leave.
Employers Next Steps
- Review your payroll records to ensure you are withholding the correct contribution rates.
- Continue to provide notice to newly hired employees of their eligibility to take leave under MA PFML.
- If you are an employer offering private plans, make sure the plans are updated with the 2022 limits.
- If you are a Full-Service or Virtual HR client and would like our assistance with updating your MA PFML policy, please email us.
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This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this content, please contact HR Knowledge at 508.339.1300 or email us.
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