The Massachusetts Department of Paid Family and Medical Leave announced updates to the paid family and medical leave benefit for 2022.As a reminder, Paid Family and Medical Leave provides paid leave to eligible employees for one’s own illness, baby bonding, to care for a family member with a serious illness, and for certain military considerations.
The program is funded by premiums paid by both employers and employees as described below. Massachusetts employers must submit contributions at a rate of 0.75% (decreased to 0.68% for 2022) of each covered individual’s wages or earnings, up to the Social Security wage base.
- Employers with 25 or more Massachusetts employees must remit the entire 0.68% contribution to the trust fund. Such employers may deduct 100% of the family leave contribution, and 40% of the medical leave contribution from employees. The employer must pay the remaining 60% of the medical leave contribution.
- Employers with 24 or fewer Massachusetts employees are not obligated to pay the 60% employer share of the medical leave contribution. Such employers need only remit the remaining 40% employee share of the medical leave contribution, and 100% of the employee’s family leave contribution, all of which may be deducted from the wages of employees.
A covered individual’s weekly benefit amount is calculated based on the employee’s average weekly wage, as follows:
- The portion of an individual’s average weekly wage that is equal to or less than 50% of the state average weekly wage shall be replaced at a rate of 80%.
- The portion of an individual’s average weekly wage that is more than 50% of the state average weekly wage shall be replaced at a rate of 50%.
The state average weekly wage for 2021 is $1,487.78 (increasing to $1,694.24 for 2022).The maximum weekly benefit amount for 2021 is $850 (increasing to $1,084.31 for 2022).
The Department provides a detailed explanation on calculating contributions, as well as additional information about the PFML program on its dedicated webpage for employers.
The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. This information is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.