NOTE and DISCLAIMER: The following information, including any calculations required herein, are not intended, nor should be interpreted as legal advice. Massachusetts employers should not rely on these or any calculations when determining PFML other than those which come directly from the state. A Massachusetts employer or employee should contact a professional skilled in these calculations. Contact 978-273-8337 for more information or assistance in these matters as an attorney-client relationship is not formed through the reading, interpretation or use of the information on this webpage.
Where Do the Funds Come from for Paid Family Medical Leave?
Employer and employees, jointly, contribute to the fund that is used to provide PFML monies to employees.
How Much Time Off Can an Employee Take Under PFML?
Paid Family Medical Leave in Massachusetts covers up to 26 weeks of time taken for family or medical leave. In order to meet the qualifications necessary to take PFML, the employee must be employed by an employer required to contribute to PFML, must be an eligible employee and must be requesting to use the time for family or medical reasons.
Keep in mind that the Family Medical Leave Act, and the provision of that Act, are federal law. Like PFML, the Family Medical Leave Act provides for leave for employees that meet certain criteria. The following steps for Massachusetts Employers are meant to educate employers as to the steps that an employer might take in order to determine how to PFML applies to their specific circumstances. If you operate or own a Massachusetts business contact attorney Richard Gaudet for more information.
Steps for Massachusetts Employers Considering PFML
Step 1 – Which Employees are Eligible?
The first matter is to determine the number of W-2 employees that the business has.
Once the number of W-2 employees has been determined, calculate total workforce as defined by PFML.
Total workforce is calculated by reviewing the previous calendar year, then adding the number of W-2 employees of the business that receive pay from the business, then divide that number by the number of pay periods. Additionally, you will need to consider the number of 1099-MISC contractors that received payments from your business during the past calendar year, then divide that number by the number of payment periods applicable.
By comparing the W-2 average to the 1099-MISC average, a further calculation may be required. If the 1099-MISC average is greater than the W-2 average, then the 1099 MISC contractor must be added to the W-2 employees. If, however, the 1099-MISC average is lower than the W-2 average, these 1099-MISC contractors are not required to be counted as individuals covered by the PFML.
If, once the aforementioned calculations are complete, your business has 25 or more individuals (covered individuals) working for your business during the previous calendar year, then your business must make contributions for those individuals to PFML. On the other hand, if your business has less than 25 covered individuals working during the previous calendar year (as determined by the above calculation) then your business may not need to contribute to the PFML program this year. Keep in mind that even if your are not required to contribute as an employer to PFML, your employees may be required to do so through MassTaxConnect (as the business).
Note: A Massachusetts employer may choose to voluntarily contribute to an employee’s PFML, though they may not be required to do so based on these calculations.
Contact an attorney for assistance in this matter, as these calculations required to comply with PFML are confusing.
Step 2 – What is the Total Amount My Business Must Pay to PFML in Massachusetts?
If your Massachusetts business has greater than 25 covered employees, contributions must be made to Massachusetts PFML on behalf of those covered employees. A chart exists, created by the State of Massachusetts to assist employers in determining the precise amount that an employer will need to contribute to PFML.
A summary of the chart is as follows:
Since family leave and medical leave are separate concerns under PFML, they must be separated conceptually to understand how the Commonwealth deals with these distinct issues. Contributions to family leave are actually not required by the Commonwealth to be contributed by an employer. Family leave funds are contributed by the employee at 0.13% of eligible wages. Medical leave, on the other hand, must be contributed by the Massachusetts employer that is required to make PFML contributions at 60% of 0.62% of eligible wages. The remaining 40% is contributed by the employee to medical leave.
Employers may voluntarily pay at a larger percentage, that is, contribute more than is required under the law, however, an employer may not contribute less than what is required.
Step 3 – PFML Notice Requirements
A poster that is available free from the state must be posted publicly to make employees of the Massachusetts business aware of the provisions and requirements of PFML. Additionally, where a language other than English is spoken by 5 or more employees and is a primary language of those employees, the poster must also be in that other language.
In addition to a posting requirement under PFML, Massachusetts employers are required to issue a written notice for both W-2 and 1099-MISC employees within 30-days of that employee’s date of hire. Employers should be certain to obtain the signature of the employee or a refusal to sign such a notice as a means of determining that the burden to notify the employee has been met.
DISCLAIMER:
The information provided in the pages and posts of this website are for general informational purposes only. The information presented on this site is not legal advice, and no attorney-client relationship is formed by the use of this site.