PFML Massachusetts: An Employer's Guide to MA PFML in 2024

PFML Massachusetts: An Employer’s Guide to MA PFML in 2024

With the recent amendment to Paid Family and Medical Leave (PFML), Massachusetts businesses have a new duty. As of 2024, the state has developed new rules that greatly affect how companies handle this employee benefit.

This guide provides a clear, simple overview of what PFML requires, the most current modifications, and how Mosey can help Massachusetts companies manage state compliance.

What Is Massachusetts PFML?

Paid Family and Medical Leave (PFML) in Massachusetts is a state program designed to provide financial support to workers who must take time off for certain family or medical reasons.

This program ensures that qualified workers may respond to personal or family issues without the additional burden of missed income by allowing them to take up to 26 weeks of paid leave annually.

PFML provides partial income replacement, while the federal Family and Medical Leave Act (FMLA) only promises unpaid leave. Therefore, PFML is a useful tool for employees, even as it imposes some additional responsibilities on employers.

PFML’s eligibility is clear-cut. Most Massachusetts-based companies have to join, and under the program, almost all employees — including former and part-time workers — may be qualified for benefits. To make sure they‘re providing the right information and assistance, companies must know who among their workers qualifies for PFML.

PFML receives funding from company and employee donations. The state mandates that partial employee pay be deducted to support the program, and companies make contributions based on their workforce size.

Some businesses might choose a private plan that satisfies or surpasses governmental criteria. Under these circumstances, one might seek an exemption from state contributions, although this must be renewed yearly.

What Are the Changes to Massachusetts PFML in 2024?

When it comes to “topping up” benefits, 2024 ushers in significant revisions to Massachusetts PFML. Previously, an employee who decided to spend accumulated paid leave from their company would not be entitled to PFML benefits concurrently.

Employees who sought to add their accumulated leave to match the state’s partial income replacement would find it difficult to keep their full pay. However, the legislation has changed to let workers use their earned paid leave to augment PFML benefits without losing eligibility. This took effect on Nov. 1, 2023.

As long as the sum is under 100% of their average weekly pay, employees can now mix PFML benefits with their employer-provided paid leave. This shift provides your staff with more freedom and financial consistency during a leave.

The new rules also clarify how and when employees may use their earned leave to augment PFML benefits, which would be governed by the conditions of their paid leave policy. This is significant, as it lets companies control their leave policy even while following state legislation.

What Are the Responsibilities of Employers Under MA PFML?

Under the PFML statute, Massachusetts employers have numerous important obligations. These have become even more important with the 2024 revisions.

Notify Employees

This step comes first among your responsibilities. New hires should receive written notification within 30 days of their start date, including their rights and benefits under the PFML program.

Employers must also display a PFML poster somewhere clearly in the workplace. Should the Department of Family and Medical Leave (DFML) produce a translation, this poster should be accessible in English and any other language spoken by five or more workers.

Calculate Contributions

Another important task is computing PFML contributions. Every year, employers must report the size of their workforce to determine whether they have to make employer contributions.

Companies with 25 or more insured employees must participate in the initiative; companies with less than 25 just have to pay the employee portion. Employers should calculate these contributions using the same pay basis they show the Department of Unemployment Assistance.

MassTaxConnect, the state online tax site, handles quarterly reporting and contributions. Employers must turn in their PFML contributions and reports every three months to ensure every employee contribution is faithfully deducted and forwarded to the state.

Manage PFML Applications and Top Off Payments

The PFML application procedure is mainly under the control of employers. An employee’s application for PFML benefits is reviewed by their employer, who has 10 working days to provide pertinent information.

Employers must create a PFML account and name a confirmed leave administrator who will receive alerts regarding fresh applications to facilitate this process.

Employers should also ensure that all information is precise and complete after completing an application. If the employer fails to reply in time, the state will proceed with approval. Effective handling of this process helps prevent disturbances or problems with the employee’s leave.

The new “top off” provision also demands attention from employers. Workers can now add earned paid leave to augment their PFML benefits — although the total cannot be more than their average weekly salary.

Companies should keep a close eye on these payments to avoid overpaying, as the DFML will not help recover extra amounts. Since the employer bears the responsibility, tracking and controlling top-off payments is imperative.

Negotiating Private Plans and Exemptions

Although most companies have to join the PFML program, there are options for those that provide a private plan that satisfies or surpasses state criteria. Companies that decide to provide a private plan may request a state contribution exemption, which must be renewed yearly.

Employers considering moving from a private plan to the state’s PFML program should know the required processes. See a tax professional to be sure all criteria are satisfied, as this change might affect tax reporting and compliance.

Some employers might be automatically exempt from PFML rules depending on their position or type of company. Employers who believe they qualify for an exemption should check with a tax advisor to prevent unanticipated debt or penalties.

What Are Common Challenges and Best Practices for PFML?

Managing PFML compliance can be difficult, especially for small companies with limited resources. Tracking donations, organizing applications, and guaranteeing conformity with the most recent rules are all essential administrative tasks.

Employers can follow best practices to simplify these procedures. First, they should stay updated on continuous legislative changes in the PFML law. Reviewing updates from the DFML and other reliable sources regularly allows employers to stay ahead of legal obligations.

Second, companies should consider using technologies and services designed to help with compliance management. While some businesses do these tasks in-house, others can benefit from employing outside providers with payroll and compliance management specialists. Compliance automation from Mosey can streamline the process and save time and effort.

Lastly, employers should check their leave rules and change them to coincide with the new PFML. This entails ensuring your policies are properly shared with every employee and clearly show how team members can use their accumulated paid leave to augment PFML benefits.

How To Prepare for Potential Audits

Additionally, employers should be ready for possible PFML compliance audits. Audits run by the Massachusetts Department of Family and Medical Leave ensure that companies are correctly computing contributions, handling employee applications, and following PFML rules.

Maintaining thorough records of all PFML-related activities — including employee notices, contribution filings, and any correspondence regarding leave — is crucial to avoiding fines.

By using an internal audit system, employers can find and fix problems before they become more significant. Reviewing your PFML compliance policies on a regular basis makes sure your company is always ready for an inspection.

Stay Compliant With Mosey

PFML is a key component of Massachusetts’ labor laws, and your business must comply with it. Companies have a lot to consider with the 2024 revisions to the program, especially the new addition of topping up benefits.

Reviewing existing PFML policies and procedures will help your company make necessary changes to match the most recent recommendations. Staying proactive and informed is essential to negotiating the complicated nature of PFML and successfully assisting your staff.

Mosey can simplify payroll compliance so you can concentrate on what really counts — expanding your company. Mosey’s compliance management platform streamlines the process using real-time information, automated systems, and expert insights for companies managing hundreds of employees.

Don’t let compliance obstacles slow you down. Schedule a Mosey demo to embrace hassle-free compliance management.

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