What Do Employers Have to Contribute to the Massachusetts Paid Family Leave Fund?
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For small employers, the financial burden of contributing to the PFML fund falls entirely on the employees, in the form of wage deductions, unless the employer voluntarily agrees to contribute as part of its compensation and benefits package.
Employers with 25 or more employees, however, are required to contribute a portion of the total employee contribution. Essentially this works like the social security taxes in payroll- the employer is required to submit the entire amount, but may deduct the employee portion from wages in each paycheck. Because this is a relatively new law, and the Department of Paid Family Medical Leave makes changes in the required contributions from time to time, it is a good idea, especially if you are at or near the 25 employee mark, to use the services of a reputable payroll company who can make sure accurate contributions are made. Learn more here about the Massachusetts Paid Family Leave Law. |
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