For additional resources, please see the following:

https://www.mass.gov/info-details/family-and-medical-leave-contribution-rates-for-employers

https://www.mass.gov/guides/fmla-leave-family-and-medical-leave-act

https://www.mass.gov/info-details/paid-family-medical-leave-for-employers-faq

UPDATE:

• NOTE: This Employer Paid tax was included in the tax download (19.05). When originally created the tax type was FICA/SDI. This tax type has been changed to an Unemployment tax type and will be included in the next tax download (19.06)
• If you have Pays or Deductions that were not FICA/SDI taxable. Please refer to the considerations in the Resolution section below.
• Please subscribe to this article or to # 24180 for future changes to these taxes.
• You will need to add your MAPFL and MAPFL_E taxes to the MA Tax group in Payroll, Setup, Taxes, Tax Groups after installing the tax update and before your process your payroll with check dates on or after October 1, 2019.
  Note: If checks have already been processed before the tax was added to the tax group you will need to reprocess the check if you wish to have the tax applied.

 

Employers with 25 or more employees will be required to remit an employer contribution to the Department of Family and Medical Leave of 0.372 percent of eligible payroll. This contribution can be split between employee payroll deductions and an employer contribution and will support both types of leave.

Employers with fewer than 25 employees are required to remit 0.378 percent of the eligible employee tax.

If you have fewer than 25 employees, the employer is not subject to the Employer MAPFL_E tax. You would not add MAPFL_E tax to the MA Tax Group after the tax download.

Payroll deductions and contributions were to begin on July 1st, 2019, this was delayed to October.

Effective January 1, 2021 employees who contribute to the program can take paid leave.

NOTE:

When MAPFL and MAPFL_E taxes were originally included with Payroll Tax Download 19.05, they were originally setup as FICA/SDI type of taxes. On the next Tax Download both Taxes were changed to Unemployment type of taxes.

 

 

To apply the tax complete the directions below to download and add the tax to the tax groups.

Download Taxes:

1. In Payroll go to Tools > Download Taxes.
2. Verify your Client Number and check the box "Update tax file when download is complete"
3. Press Start
4. Review print out to see changes.
5. If you have multiple companies with different tax files repeat these steps in each company

Update the Tax Liability, Expense and Distribution settings:

1. In Payroll go to Setup
2. Open Taxes and select Tax Rates
3. Select the tax ID MAPFL and tab into the Tax
4. Add the Liability Account.
5. Note:If the you are not required to process the employers portion skip to Step 10.
6. Select MAPFL_E
7. Select the Distribute to check boxes for the interfacing applications.
8. Enter your Liability account, Job cost distribution and expense as applicable.
9. Select Save and Close

Add the Massachusetts Paid Family Leave Tax to MA Tax Group:

1. In Payroll open Setup
2. Select Taxes > Tax Groups
3. Select State
4. Enter MA into the Tax group.
5. Enter or Tab until your cursor is in the Tax ID column of the table.
6. Enter MAPFL and Accept line
7. Enter MAPFL_E if applicable to your company and Accept line
8. Press Accept Table and Accept
9. Press Close.

Tax Details:

The Tax ID's MAPFL and MAPFL_E tax each have a limit of $132900.00 for 2019. This is the same limit as SOC and SOC_E taxes.

The Tax Level is State and the Tax type is Unemployment..

The percent for MAPFL is .37800, and the percent for MAPFL_E is .37200.

 

Considerations:

There will most likely be reporting required for these taxes, this information is not finalized as yet and this article will be updated with any specific information. Subscribe to this Article in order to be updated of future changes.