Legislative leaders and Governor Baker made a joint announcement that payroll withholding to fund the state’s new Paid Family and Medical Leave (PFMLA) will be delayed by three months to until October 1, 2019. This delay will allow employers across the Commonwealth more time to prepare.
Required Withholding Now Starts October 1, 2019
On that date, employers must begin withholding PFMLA contributions from employee qualifying earnings.
Contribution Rate Change
The previously announced rate was 0.63 % to be shared by employees and employers with 25 or more employees. With the delay, the total contribution rate has been adjusted to 0.75% of employee qualifying earnings.
Timeline Extended for Required Employee Notices
Employers now have until September 30, 2019, to notify all covered individuals of their rights and obligations under PFMLA.
Timeline Extended for Exeption Applications
Employers that offer benefits that are at least as generous as those required under the new PFMLA law, may apply for an exemption. The deadline to apply for an exemption is now December 20, 2019.
For more information on how this will impact you or your business contact our Employment Law Group.