Lists the tax codes a client may need enabled for Massachusetts Paid Family and Medical Leave calculations, and what each one covers. Explains that the program is funded by both employee and employer contributions.
Massachusetts Paid Family and Medical Leave (PFML) is funded through both employee and employer contributions. Clients may need up to 5 tax codes enabled to properly support their MA PFML calculations.
Employee (EE) contributions are deducted using two tax codes:
In most cases, these tax types should be set to calculate the system rates.
If the client chooses to pay a portion of the EE taxes on their employees' behalf, rather than deduct the full amounts, you will also need to add the following tax codes:
In this case, enter the rates for all 4 tax types according to how the client has chosen to split the contributions. The totals of both PFL codes and both PML codes must equal the current year's tax rates.
Note: The system rates for MAERPFLEE and MAERPMLEE are 0.
Employers with 25 or more subject employees are required to pay an employer (ER) share of Medical Leave tax:
This tax type should be set to calculate at the system rate. If the client is no longer subject to the ER tax or it was added in error, override the rate to 0%.
The following setup examples are based on 2024 tax rates.
| Scenario | MAERPML | MAEEPMLEE | MAEEPFLEE | MAERPMLEE | MAERPFLEE |
|---|---|---|---|---|---|
| Employer with less than 25 EEs | — | System rate (.28) | System rate (.18) | — | — |
| Employer with more than 25 EEs | System rate (.42) | System rate (.28) | System rate (.18) | — | — |
| Less than 25 EEs, ER covers half of EE portion | — | Do not use system rate: .14 | Do not use system rate: .09 | 0.14 | 0.09 |
| More than 25 EEs, ER covers half of EE portion | System rate (.42) | Do not use system rate: .14 | Do not use system rate: .09 | 0.14 | 0.09 |
Important: These examples use 2024 tax rates. Confirm the current year's rates before completing setup.
Clients may need up to 5 tax codes enabled to properly support their MA PFML calculations. Employee contributions use MAEEPFLEE and MAEEPMLEE, the employer-paid portion of the employee tax uses MAERPFLEE and MAERPMLEE, and the employer medical leave share uses MAERPML.
Employers with 25 or more subject employees are required to pay an employer share of the Medical Leave tax, using the MAERPML tax code. That tax type should be set to calculate at the system rate.
Add the MAERPFLEE and MAERPMLEE tax codes and enter the rates for all four employee-related tax types according to how the client has chosen to split the contributions. The totals of both PFL codes and both PML codes must equal the current year's tax rates.
The system rates for MAERPFLEE and MAERPMLEE are 0, so you must enter the split rates yourself when the employer covers part of the employee contribution.
If the client is no longer subject to the employer tax, or the MAERPML code was added in error, override the rate to 0%.
Must send DFML a contribution of 0.88% of eligible wages. The contribution can be split between covered individuals' payroll or wage withholdings and an employer contribution.
| Component | Rate | Employer share | Employee share |
|---|---|---|---|
| Total contribution | 0.88% | - | - |
| Medical contribution | 0.70% | 0.42% | 0.28% |
| Family contribution | 0.18% | 0.00% | 0.18% |
Must send an effective contribution rate of 0.46% of eligible wages. The rate is lower because small employers are not required to pay the employer share of the medical leave contribution. Small employers must send the funds withheld from covered individuals' wages but are under no obligation to contribute themselves, though they may elect to cover some or all of the covered individuals' share.
| Component | Rate | Employer share | Employee share |
|---|---|---|---|
| Total contribution | 0.46% | - | - |
| Medical contribution | 0.28% | 0.00% | 0.28% |
| Family contribution | 0.18% | 0.00% | 0.18% |
Important: these are the 2024 rates carried in the source article. Verify the current plan-year rates with the Massachusetts Department of Family and Medical Leave before relying on them.