MASSACHUSETTS PAID FAMILY & MEDICAL LEAVE LAW WHAT YOU NEED TO - - PowerPoint PPT Presentation
MASSACHUSETTS PAID FAMILY & MEDICAL LEAVE LAW WHAT YOU NEED TO KNOW Massachusetts Paid Family and Medical Leave Law (MA PFML): What is it? When does it go into effect? Who is eligible and what can it be used for? What
Massachusetts Paid Family and Medical Leave Law (“MA PFML)”:
laws?
THIS MATERIAL IS NOT INTENDED TO BE LEGAL ADVICE AND SHOULD NOT BE RELIED ON AS SUCH. AFTER THIS SEMINAR, SHOULD YOU HAVE QUESTIONS SPECIFIC TO YOUR BUSINESS PLEASE CONTACT DIRECTLY.
M.G.L. c. 175M, §1 et seq.
leave of up to 12 weeks to care for a family member, and up to 20 weeks for your own illness.
personal leave and in July 2021 for leave to care for family members.
employ 1 or more Massachusetts workers, with limited exception.
“probationary” period before being granted leave.
What Employees/Covered Individuals are eligible for PFML?
and all employment in MA) or a 1099 Contractor if that contractor makes up more than 50% of the employer’s workforce;
AND reported earnings to the DOR; or
requirements and all employment in MA at the time of separation, and has not been separated for more than 26 weeks
What Employees/Covered Individuals are eligible for PFML cont.
wages (by any employer) in the last 4 calendar quarters immediately preceding the claim for benefits amounting to at least $4,700 and 30 times the weekly benefit rate
requirements for unemployment insurance
the PFML depends on the makeup of your workforce. To make sure you're correctly assessed for contributions, it's important that you properly report the size and makeup of your Massachusetts workforce to the Department of Family and Medical Leave.
for submitting contributions on behalf of members of your workforce who are treated as covered individuals for the purposes of the PFML law.
individuals
number of covered individuals only if they make up more than 50 percent of your total workforce (W2 employees and 1099-MISC contractors combined)
contractor if you paid them at least $600 in the tax year
1.
Behavioral Control – Does the employer control or have the right to control what the worker does and how the worker does his or her job?
2.
Financial – Are the business aspects of the worker’s job controlled by the payer?
3.
Type of Relationship – Are there written contracts or employee type benefits (ie pension plan, insurance, etc)? Will the relationship continue and is the work performed the key aspect of the business?
1.
Is done without the direction and control of the employer; AND
2.
Is performed outside the usual course of the employer’s business; AND
3.
Is done by someone who has their own, independent business or trade doing that kind of work
made up with covered subcontractors so they are included in your count.
covered individuals but your total is under 25 so you are not required to pay the employer share.
made up with covered subcontractors so they are NOT included in your count.
employees but your total is under 25 so you are not required to pay the employer share.
made up with covered subcontractors so they are included in your count.
covered individuals and your total is over 25 so you are required to pay the employer share.
My company does not run payroll but I pay subcontractors, does this law apply to me?
pay “x” number of subcontractors, your subcontractors are considered “covered individuals” and because they make up more than 50% of your payroll, you are required to pay the tax on their behalf.
How do I determine which subs need to be paid?
their entity type. You only need to collect tax for Sole Proprietors.
Department of Family and Medical Leave of 0.75% of eligible payroll.
deductions and an employer contribution and will support both types of leave.
contribution can be deducted from employee’s wages
contribution can be deducted from employee’s wages. Employers are responsible for the remaining 60%.
remitting the employer’s share
contribution can be deducted from employee’s wages.
contribution can be deducted from employee’s wages. Employers are not responsible for the remaining 60%. The Employer can choose to contribute if they wish.
RESPONSIBILITY!
0.75% contribution to the state paid leave fund, including both the employee portion withheld through payroll deductions and any required employer portion
employer contribution, it is ultimately your responsibility to make sure the correct amounts are remitted to the state.
penalty to the employer of 0.75% of an employer’s total annual payroll for each year of compliance (or fraction thereof).
after placement for adoption or foster care
notification of impending call or order to active duty of a family member
service member (26 weeks)
condition
he/she was a child
*Bolded text indicates an addition from federal FMLA
Yes, when a benefit claim is filed, such claim SHALL include a certification supporting a request for leave Certification deadline is 90 calendar days after the start of leave
More guidelines to come on this before 2021
First seven days of leave are not paid – employee can use accrued sick or vacation or other PTO for those days Employee (other than self-employed or former) shall be restored to previous position or equivalent position Employer cannot compel the employee to exhaust any sick, vacation or personal time prior to or during leave but no double dipping by employee Notice by employee should be at least 30 days prior to leave or as soon as practicable if delay is for reasons beyond the employee’s control Administrative review available to employee, an employee can appeal the denial of leave to The Department of Family and Medical Leave
the statutory leave obligations if they have a private plan
Does PFML run concurrent with other applicable state and federal laws?
required to provide written notice to their current workforce of PFML benefits, contribution rates and other provisions outlined in M.G.L. c 175M
employee to acknowledge receipt or decline to acknowledge receipt of the information.
purposes of enforcement the Department of Family and Medical Leave shall consider an Employer or Covered Business Entity to have fulfilled its notice
the opportunity to acknowledge receipt or decline.
employment.
contract for services
acknowledgement of receipt of the notice or the written statement indicating the employee’s refusal to acknowledge the notice.
Medical Leave or you can create your own
workplace poster prepared or approved by the DFML that explains the benefits available to your workforce under the PFML law. You must post this poster at your workplace in a location where it can be easily read.
primary language of 5 or more individuals in your workforce if such translations are made available from DFML.
www.mass.gov/files/documents/2019/03/21/20190321_DFML%20Notice_ FINAL.pdf
www.mass.gov/lists/paid-family-and-medical-leave-downloads-for- massachusetts-employers
WHAT TO DO NOW
number of covered individuals and determine your company’s
complete information necessary unless they also handle your 1099s.
signatures of acknowledgement by September 30, 2019
running payroll
additional regulations and guidance become available
handled?
independent contractors that include payments for services AND materials?
Click this link to ask the State directly!
Stratlign Inc. info@stratlign.com 508.563.2218 www.stratlign.com