New for Massachusetts - Paid Family Medical Leave Law

William Delaney, EA
Westwood, MA

RI already mandates paid family leave.  Now comes MA with House Bill 4640.  Effective 7/1/2019, a notice describing this benefit must be posted in each workplace.  Also, within 30 days of hiring, employees must receive written information (either prepared by or approved by MA) explaining the benefits, etc.

All employers are covered.  There is NO minimum number of employees---one is sufficient.  A covered individual is your current employee (regardless of length of service), or a former employee (within 26 weeks of separation).  Also, if they so elect, self-employed may be covered.

Benefits will be paid from the Family and Employment Security Trust Fund.  The money will actually come from a payroll tax on employers – initial contribution rate of 0.63% of all wages paid.  ($40,000 x .0063 = $252)

Employers with 25 or more employees:

Up to 40% of the medical leave contribution may be deducted from the employee’s wages.  The employer is responsible for remitting 100% of the tax.

Up to 100% of the family leave contribution may be deducted from the employee’s wages.  The employer is responsible for remitting 100% of the tax.

Employers with fewer than 25 employees in Massachusetts:

The employer is not required to pay the employer portion of the tax.  The employee is still subject to payroll deduction (see above for 25 or more employees) for his/her share of the tax.

A “covered business entity” (a business which contracts with self-employed individuals and is required to issue federal form 1099-Misc) is subject to the same requirements as to deductions and remittances as outlined above.

Regulations to follow on or before July 1, 2019.  Your Editor assumes that the tax and withholding obligations will be effective July 1, 2019.  The statute does not specify a start date.  Paid leave will not be available until 2021 – effective date not clear; the language in the statute is inconsistent and needs clarification.