Update (incl apparent change to rules): Below is the MA PFML article/info from the Sage 100 knowledgebase,
which apparently is not completely up-to-date/accurate. The mass.gov (non-Sage 100-specific)
link looks to have the correct info. Regarding any applicable exemptions (e.g. after 132,500), I assume that's built into the software. Be sure to install the Tax Updates when prompted in Sage 100 to make sure you have the most recent installed.
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Massachusetts Paid Family & Medical Leave
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Apparently this is not completely up-to-date/accurate; see the mass.gov (non-Sage 100-specific) link.
Employers with 25 or more employees will be required to remit a contribution to the Department of Family and Medical Leave of 0.63 percent of eligible payroll. This contribution can be split between employee payroll deductions and an employer contribution and will support both types of leave.
Users who hire 1099 contractors are another requirement to be reported. This will not be handled via Accounts Payable. These contractors will need to be reported via the Payroll module or manual entry into Aatrix. (Instructions to come upon release targeted prior to the effective date. Currently waiting for the state of MA to finalize the reporting for the MAPFML so we have the information to map our files to Aatrix.)
Payroll deductions and contributions were to begin on July 1st, 2019. **** This date has been extended for 3 months by the state of MAssachusetts. Until finalized this information is subject to change!!!!
Effective January 1, 2021 employees who contribute to the program can take paid leave.
Final specifications from MA are not yet released, however, Sage Engineering and Aatrix are aware and working on a solution before the effective date.
***Updated status:
Massachusetts will delay implementation of its new paid family and medical leave program by three months, concerned that its planned rollout would cause confusion among employers.
The state had planned to begin July 1 requiring businesses to make payroll deductions to fund the paid family and medical leave program. The payroll contributions would equal 0.63 percent of a worker's weekly wages, split between employer and employee contributions. The start date for mandatory contributions has been delayed three months, to Oct. 1, 2019.
Notes:
- In order to comply with this new law you'll require two Tax ID's. It is likely that there will be required reporting for both Tax ID's, therefor Tax ID's must be specific. Employee Tax ID & Employer Tax ID.
- Total premium contribution for 2019 is 0.63%.
- The Medical Leave Contribution is 0.52% and the Family Leave Contribution is 0.11%.
- The Medical Leave Contribution is shared by the employer (60% of the Medical Leave Contribution) and by the employee (40% of the Medical Leave Contribution).
- The Family Leave Contribution is paid 100% by the employee.
- Both taxes will calculate based on formulas created in the SPA.
Considerations:
Both taxes are effective 10/1/2019 at this time. Once you've finished processing the last payroll where the check date will be in September 2019, add the taxes to the MA Tax Group. There are specific considerations for both of these taxes. Familiarize yourself with the rules and what is applicable for your company.
The required reporting is not finalized as yet.
Guide FMLA Leave (Family and Medical Leave Act)
Paid Family Medical Leave for employers FAQ
111083 & 110925
ID:97425Last modified:8-23-2019
Original Message:
Sent: 07-17-2019 12:37
From: Wayne Schulz
Subject: Fyi, 'Massachusetts' Paid Family & Medical Leave (FMLA) - effective 7-1-19
I noticed a post in Sage City about another payroll change which will only be updated in the latest version 2.19.x of payroll. It's important to ensure anyone still on legacy payroll understands that by staying on that older release they undertake the risk of their payroll not being updated for critical payroll year-end 2019 or 2020.
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Wayne Schulz - Schulz Consulting - 860-516-8990
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Original Message:
Sent: 07-17-2019 12:25
From: Brett Zimmerman
Subject: Fyi, 'Massachusetts' Paid Family & Medical Leave (FMLA) - effective 7-1-19
Apparently the 7-1-19 'begin' date for Payroll deductions and contributions has been extended 3mo by the state of MA.
Final specifications from MA are not yet released, however, Sage Engineering and Aatrix are aware and working on a solution before the effective date.
***Updated status:
Massachusetts will delay implementation of its new paid family and medical leave program by three months, concerned that its planned rollout would cause confusion among employers.
The state had planned to begin July 1 requiring businesses to make payroll deductions to fund the paid family and medical leave program. The payroll contributions would equal 0.63 percent of a worker's weekly wages, split between employer and employee contributions. The start date for mandatory contributions has been delayed three months, to Oct. 1, 2019.
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- Brett
Original Message:
Sent: 07-17-2019 12:09
From: Brett Zimmerman
Subject: Fyi, 'Massachusetts' Paid Family & Medical Leave (FMLA) - effective 7-1-19
Apparently the 7-1-19 'begin' date for Payroll deductions and contributions has been extended 3mo by the state of MA.
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- Brett
Original Message:
Sent: 05-15-2019 01:37
From: Jim Woodhead
Subject: Fyi, 'Massachusetts' Paid Family & Medical Leave (FMLA) - effective 7-1-19
Washington State just went though this same thing. We are 6 months in and Washington still hasn't release a format for remit or report the FML...
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Jim Woodhead
DSD Business Systems
619-990-3946