As announced last year, Massachusetts will be enacting a Paid Family and Medical Leave program. Earlier this week, the Governor and two state legislators agreed to seek a three-month delay to the start of a payroll tax designed to fund the program which was set to take effect on July 1st.
The delay in implementation will not reduce total contributions paid into the new trust fund because the State will increase the contribution rate from .63% to .75% of wages. State leadership also will be adopting technical changes to clarify the program’s design and are looking forward to implementing the tax portion of the program this fall.
Massachusetts workers will be able to access paid leave benefits beginning in January 2021.
If you have questions, please contact one of our HR Consultants at 888-622-6460.