This week, the Massachusetts Legislature and the Baker-Polito Administration enacted legislation to delay the start of employer and employee contributions to the Paid Family and Medical Leave program (PFML) by three months to October 1, 2019. This delay will allow employers across the Commonwealth more time to prepare their organizations and workforces for PFML. Please read below to see how this delay will affect you and your responsibilities under the law. What Has Changed • Payroll deductions will start on October 1 instead of July 1. • The contribution rate has increased from 0.63% to 0.75%. • The deadline for informing employees about PFML has been changed to September 30. • The deadline for applying for an exemption has been changed to December 20. To qualify for an exemption, an employer must have a documented leave policy comparable to or better than the PFML and meet other requirements, including having the plan bonded. What Has NOT Changed • PayPlus Payroll will handle the payroll deductions for our clients, as we do for all taxes. • You are still required to inform your employees about their rights and obligations under PFML. Only the deadline for informing them has been changed. Required Withholding Now Starts October 1 The start date for required PFML contributions is now October 1, 2019. On that date, employers must begin withholding PFML contributions from employee qualifying earnings. Employers will be responsible for remitting employee and (if applicable) employer contributions for the October 1 to December 31 quarter through MassTaxConnect by January 31, 2020. PayPlus will take care of this for our clients. Contribution Rate Change The PFML law requires that the Department adjust the contribution rate to offset the shorter period for collections that will result from the three-month delay. As a result, the total contribution rate has been adjusted from 0.63% to 0.75% of employee qualifying earnings. This adjustment will ensure that full funding will be in place for the commencement of benefit payments in January 2021. PayPlus will take care of this for our clients. Timeline Extended for Required Employee Notices Employers now have until September 30, 2019, to notify all covered individuals of their rights and obligations under PFML. Check the Department website at mass.gov/pfml in the coming days for updated notices to provide to your workforce. You need to do this. Timeline Extended for Exemption Applications Employers that offer paid leave benefits that are at least as generous as those required under the PFML law may apply to the Department for an exemption from making contributions. Employers will now have until December 20, 2019, to apply for an exemption that will excuse them from the obligation to remit contributions for the full period commencing with the October 1 start date. PFML Regulations Will Be Final and Effective on July 1, 2019 The final regulations will be posted on the Department website at mass.gov/pfml on Monday, June 17, 2019. The regulations will be formally published under the title 458 CMR 2.00 DEPARTMENT OF FAMILY AND MEDICAL LEAVE. More about PFML Beginning in 2021, PFML will provide temporary income replacement to eligible workers who are welcoming a new child into their family, dealing with a serious illness or injury, caring for an ailing relative, or dealing with complications resulting from the military deployment of a family member. The program is funded by payroll-based contributions from employers, employees, and certain contract workers. To learn more about PFML, including information about how this new program impacts your organization, more background on exemptions, and details on contribution levels, please visit mass.gov/pfml.