Paid Family And Medical Leave
As everyone is aware, the new Paid Family and Medical Leave
law goes into effect this year. Regulations are currently being drafted. We
urge all members to contact ASM with questions or concerns that you may have.
ASM will be hosting a webinar on February 28th and a live program on
May 14th on this topic.
In the meantime, take some time to familiarize yourself with
the new law. Below is some of the information released by the new Department of
Family and Medical Leave.
Overall Timeline
Draft regulations
available (Jan. 23, 2019)
DRAFT DFML
Regulations regarding the Paid Family and Medical Leave law are
available to review.
The Executive Office of Labor and Workforce Development will be holding public listening
sessions throughout the Commonwealth with respect to the draft
regulations.
Regulations published for
public comment and hearing (March 29, 2019)
Final regulations
promulgated and employer contributions begin (July 1, 2019)
Most benefits available
(Jan. 1, 2021)
-
Paid family leave benefits will be
available for bonding with a new child, and servicemember-related
events
-
Paid
medical leave benefits will be available for serious personal health
conditions
All benefits available
(July 1, 2021)
Contribution rate split for employers with 25 or more employees
Visual breakdown explained
Employers with 25 or more employees will be required to remit a
contribution to the Department of Family and Medical Leave of 0.63 percent of
eligible payroll. This contribution can be split between employee payroll
deductions and an employer contribution and will support both types of leave.
Family leave-
Up to 100 percent
of the family leave contribution can be deducted from employee wages.
Medical leave-
Up to 40
percent of the medical leave contribution can be deducted from employee wages.
Employers are responsible for contributing the remaining 60 percent.
Frequently Asked Questions
Are all employers and
businesses required to comply with the PFML law?
Businesses that employ 1 or more individuals are subject to
the PFML law and must submit contributions on behalf of workers and covered
individuals. Businesses with fewer than 25 employees or covered
individuals must submit contributions on behalf of their workers to cover
the portion of PFML contribution due from employees and covered individuals.
These businesses are not required to pay the employer portion of the
contributions for family and medical leave. Cities, towns, districts, and
political subdivisions or their instrumentalities are exempt unless they opt
in.
I'm already offering
family and medical leave benefits. Am I exempt from the state contribution?
You will be able to apply
for annual exemptions from making contributions for both medical leave and
family leave if you offer a private plan option that is at least as
generous as what is required under the PFML law. If your business receives
this exemption your employees will not be covered by the state PFML plan.
Are self-employed
individuals required to comply with the PFML law?
No. You may elect to pay contributions to get coverage under the
PFML law, but participation is entirely voluntary. Independent contractors who
contract with a business that issues 1099s for more than 50% of its workforce
are treated as “covered individuals,” and their contributions will be remitted
to the department by that business just like the business’s employees.
What are the conditions
for enrollment as a self-employed individual?
You must opt into the PFML program for an initial period of at
least 3 years and must make contributions for at least 2 full quarters before
applying for benefits. Self-employed individuals who opt in are
responsible for paying the full contribution amount.
What is the contribution
rate and how is it collected?
The contribution rate is 0.63% on the first $128,400 of an
individual’s annual earnings. You are responsible for remitting the full
contribution to the department but may deduct from an employee’s wages to cover
the employee’s share. Businesses with fewer than 25 employees in Massachusetts
must remit contributions to the department on behalf of their workers but are
not required to pay the employer share of the contribution for family and
medical leave. Businesses that issue 1099s for more than 50% of their workforce
must remit contributions for their 1099 workers (“covered individuals”) as well
as their employees. If your business has 25 or more workers in total, you
must pay the employer share of the contribution for family and medical leave
for both employees and covered individuals.
How much can I deduct
from pay to cover the employee or covered individual PFML contribution share?
Employers and businesses
with fewer than 25 workers in Massachusetts must remit contributions to the
department on behalf of their workers but are not required to pay the employer
share of the contribution for family and medical leave.
How is the .63% total
contribution rate apportioned between medical and family leave contributions?
The apportionment between
family and medical leave contribution rates will be determined each year based
on projected benefit costs for each benefit year. The first year’s contribution
breakdown will be determined in the coming months and published before July 1,
2019.
When must I begin paying
the PFML contribution?
Contributions to PFML
begin on July 1, 2019.
When will the PFML
regulations be published?
The statutory deadline for the publication of PFML regulations
is March 31, 2019.
A draft of these regulations
was published on Jan. 23, 2019.
Who is covered by the
Paid Family Medical Leave (PFML) law?
The PFML law creates a paid family and medical leave benefit
that will be available to employees, covered individuals, and self-employed
persons beginning in January 2021.
-
If
you're an employee who works for a business or a state or federal
governmental agency in Massachusetts, you are automatically covered
-
If
you’re an independent contractor who contracts with a business that issues
1099s for more than 50% of its workforce, you are also covered and the
PFML law refers to you as a "covered individual." Check with any
businesses that you work for as a 1099 worker to determine if you are a
“covered individual” on this basis.
-
If
you're self-employed, you can opt in to obtain coverage
-
If you work for
a city, a town, or other local governmental employer, you are covered only
if your employer chooses to opt in
Additionally, there is an
earnings eligibility requirement for any individual who wants to take paid
leave under the law. You must have approximately 15 weeks or more of earnings
and have earned at least $4,700 in the 12-month period before you apply for
leave.
Am I covered by the PFML
law if I'm unemployed?
In some circumstances, yes. PFML benefits are available if:
You cannot receive
unemployment benefits and PFML benefits at the same time.
Are self-employed
individuals required to comply with the PFML law?
No. You may elect to pay contributions to get coverage under the
PFML law, but participation is entirely voluntary.
Independent contractors
who contract with a business that issues 1099s for more than 50% of its
workforce are treated as “covered individuals,” and their contributions will be
remitted to the department by that business just like the business’s employees.
Under what circumstances
am I eligible for PFML benefits?
-
To
deal with your own serious medical condition
-
To
care for a family member who has a serious health condition
-
To
bond with your child during the first 12 months after the child’s birth or
the first 12 months after the placement of the child with you for adoption
or foster care
-
To
deal with any qualifying exigency arising out of the fact that a family
member is on active duty or has been notified of an impending call or
order to active duty in the Armed Forces
-
To care for a
family member who is a covered service member with a serious injury or
illness incurred or aggravated in the line of duty
How do I claim these
benefits?
Benefits are not
available until January 1, 2021.
When must I begin paying
the PFML contribution?
Contributions to PFML
begin on July 1, 2019.
How much can my employer
deduct from my pay to cover the PFML contribution share?
Employers and businesses
with fewer than 25 workers in Massachusetts must remit contributions to the
department on behalf of their workers but are not required to pay the employer
share of the contribution for family and medical leave.
When can I begin taking
protected Paid Family and Medical Leave?
Beginning on Jan. 1, 2021, you can start claiming benefits for:
-
Bonding
with a child or newborn
-
Servicemember-related
events
-
Dealing with a
personal serious health condition
Beginning on July 1, 2021, you can start claiming benefits for:
How much is the benefit?
The weekly benefit amount is calculated as a percentage of
your earnings and so will vary for each individual.
The maximum
benefit is $850 per week.
What is the maximum
period of paid medical leave available?
Paid medical leave is
capped at 20 weeks per benefit year.
What is the maximum
period of paid family leave available?
Paid family leave is
capped at 12 weeks per benefit year.
What is the maximum
period of paid family leave available due to active duty by a family member?
Paid family leave arising
from a covered service member’s call to active duty is capped at 26 weeks per
benefit year.
What is the maximum
combined amount of paid family and medical leave I can take?
The maximum amount of
combined family and medical leave that an individual may take is capped at 26
weeks per benefit year.
When will the PFML
regulations be published?
The statutory deadline for the publication of PFML regulations
is March 31, 2019.
A draft of these
regulations was published on Jan. 23, 2019.
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