Background
The state of Massachusetts implemented mandated paid medical and family leave (PFML) benefits that became effective in 2021. While the benefits have largely been welcomed by employees, they have presented financial and administrative challenges for Massachusetts employers and HR teams.
Because these benefits are funded through payroll withholdings and remitted to the state quarterly (through MassTaxConnect) or to a private insurance carrier, the cost to support these benefits has not been as front and center as the cost of other benefits. With news of the state program's 2024 contribution rates increasing dramatically, employers should understand their options.
MA PFML Contributions
Next Steps for Employers
With paid leave benefits continuing to gain momentum, mounting costs will put increased financial pressure on both employers and employees. Employers should understand the landscape of opportunity of funding these benefits through the state or through an approved private plan.
Consult your payroll provider to ensure they are aware of impending changes to the 2024 Massachusetts PFML withholdings and update accordingly.
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