On June 14th, we reported that Massachusetts delayed the implementation of the payroll tax under the Family and Medical Leave law by three months (i.e., until October 1, 2019). At the time, the government informed the public that the contribution rate would be increased from 0.63% to 0.75% of wages when withholding of contribution amounts begins on October 1st, but we were not informed about how the 0.75% contribution amount would be allocated between family leave and medical leave contributions. Last week, the Massachusetts Department of Family and Medical Leave answered that question and published two updated rate sheets and employer notices – one for employers with 25 or more covered individuals and the other for employers with fewer than 25 covered individuals.
Employers who completed the notification process prior to the June 14th extension will need to issue an amendment to the form and distribute it to all employees with the modified contribution rate. However, the amendment does not need to be signed by employees and can be sent electronically. The Department of Family and Medical Leave noted that this process will need to be completed each time that the rate changes. The revised notice forms, as well as the amendments, can be found here.
We will continue to monitor all developments regarding the Paid Family and Medical Leave law. Please contact any member of the Labor, Employment and Employee Benefits group if you have any questions.
offtheclockemploymentblog 