MA 2024 Paid Family and Medical Leave – Dillner's Accounting Tools

The Massachusetts Department of Family and Medical Leave released the 2024 Paid Family and Medical Leave (PFML) contribution rate split for employers and employees. Employers with 25 or more covered individuals must send a total contribution of 0.88% of eligible wages (employer share of 0.42%, employee share of 0.46%). The medical contribution is split between the employer (0.42%) and the employee (0.28%). The family contribution is entirely funded by the employee at 0.18% of eligible wages. Employers with fewer than 25 covered individuals must send a contribution of 0.46% of eligible wages. Both the medical (0.28%) and family contributions (0.18%) are funded 100% by the employee. Employee contributions are capped by the Social Security wage base limit in effect for the 2024 tax year.

You will have to select MA as the Default FamLv State on the Company Payroll Defaults tab and set up a Family Leave Employee payroll item in each company any time before the first paycheck in 2024. The employee rate has been set up by us on the Fam Emp tab in Setup>Payroll Taxes. This is a global setting and if you change this rate you will be changing it for all employees for all clients. For clients with an approved private plan, you will have to mark each employee as Fam EMP exempt on the Exemptions tab.

Select Setup>Company Information and select the Company Payroll Defaults tab as shown below.

Select MA from the list as the Default FamLv State.

Go to Setup>Payroll Items and create a Family Leave Employee item as shown below.

If a client has 24 or fewer employees, you do not have to set up an employer portion of the tax.

To set up the employer portion of the premium for clients with 25 or more employees:

Go to Setup>Payroll Taxes and enter the rate on the Fam Co. tab as shown below.
Go to Setup>Payroll Items and create a new Family Leave Company item as shown below.

Do NOT add these items to the Payroll Templates

If the employer is paying the employee share of the tax for Payroll Check writing:

Set up an Other Income item as shown below to reimburse the employee and add it to the bottom grid of the payroll template(s).

If the employer is paying the employee share of the tax for After-the-Fact Payroll:

Set up an Other Income item as shown below to reimburse the employee and add it to the top grid of the payroll template(s) below the Family Leave Employee item. You will have to enter the amount that should be withheld in both fields.