What is Massachusetts Paid Family Medical Leave?
Massachusetts Paid Family Medical Leave (MA PFML) is a state program that allows employees and certain independent contractors or self-employed individuals to take up to 26 weeks of leave, paid for by contributions from the state.
Collections for premiums from both the employer and the employee begin on October 1, 2019, and will be deducted as part of payroll.
Who is eligible?
Massachusetts W-2 employees (full-time, part-time, or seasonal)
Generally, PFML follows the same eligibility criteria as the unemployment insurance program in Massachusetts. If the employee’s wages are reported to the Department of Unemployment Assistance (DUA), those employees are eligible.
Massachusetts 1099-MISC contractors*
While contractors paid via Form 1099-MISC may be eligible for Massachusetts PFML, it’s important to note that recent guidance from the Massachusetts Department of Family and Medical Leave states that employers paying an individual who will have their wages reported via Form 1099-NEC are exempt from remitting Massachusetts PFML contributions on that indvidual’s behalf. Currently, all payments issued to contractors through Justworks are categorized as 1099-NEC pay. However, you can find further guidance here on whether you are required to make contributions on behalf of any of your Massachusetts contractors.
*1099-MISC Contractors are ONLY covered if they comprise >50% of the company’s Massachusetts workforce. We calculate average workforce by each month by counting the number of active W2 employees, and then we check how many contractors also had the member status of "active" at the end of the month. The average workforce for the calendar year of 2018 determines contractor eligibility for the following calendar year (2019).
Eligible members cannot opt out of the benefit. If they decline to acknowledge the in-app notice, this does NOT make them ineligible, nor does it stop premiums from being deducted from the employee’s paycheck.
For more or who is eligible, visit the MA PFML site.
How does it work?
Leave taken under MA PFML may run concurrently with other state & federal leave laws, depending on the specific situation (Commonwealth’s Parental Leave Act, the federal FMLA, the commonwealth’s Earned Sick Time Act).
Covered individuals are limited to 12 weeks of family leave in a given benefit year, in the case that an individual is taking family leave to care for a covered service member they will have a maximum benefit period of 26 weeks.
Covered individuals are not eligible for medical leave for more than 20 weeks in a given benefit year, if they take both family and medical leave in a given benefit year the aggregate cap for both is also 26 weeks.
This will not impact covered individuals from medical leave during pregnancy or to recover from childbirth so long as it is supported by documentation from the healthcare provider. The 7 day waiting period is waived in this instance.
What does my company need to do?
Massachusetts requires that employers display a workplace poster that explains the benefits available to your workforce under the PFML law. This poster must be displayed in a place that is viewable and accessible for all employees.
If you have remote employees, you must send them an electronic copy.
Filing with the state
You are required to have a MassTaxConnect (MTC) withholding tax account (active or inactive) to submit the required information. In order for Justworks to file MA PFML withholdings on your behalf as your PEO, you will have to log into your MTC account to grant Justworks Third Party Access (TPA).
If you have not yet created a MassTaxConnect account:
- Follow all instructions found in this video to create a withholding account.
- Return to this page and follow the instructions below to grant Justworks TPA.
If you already have a MassTaxConnect account:
- Go directly to the MassTaxConnect portal here and login.
- Under “I Want To” section click on “Add an account type/new location/new license”.
- Select Paid Family Medical Leave.
- Fill out all the information requested and create your new account.
- Grant Justworks Third Party Access (see below).
How to grant Third Party Access:
- Login to MassTaxConnect and click on "Settings" in the top right section of the Home page.
- Under the "I Want To" section, select "Assign access rights to a third party".
- Search for and select "Justworks Employment Group LLC" in the Third Party Directory, then click "Next" to see a list of your tax accounts.
- Check the "Give Rights" check box in for your Paid Family and Medical Leave account, and select the “File and Pay” permissions in the "Access Rights" column
- Click the Next button, review, and then click the Submit button to confirm.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.