Employees who are receiving Paid Family and Medical Leave (PFML) benefits in Massachusetts may supplement those benefits with any available accrued paid leave. This change goes into effect for applications filed on or after November 1, 2023. The contribution rates for 2024 are also slated to increase.
Eligible employers must provide employees using PFML benefits with the option to supplement their weekly benefit with accrued PTO, up to the individual average weekly wage (IAWW). This requirement applies to private PFML plans.
The planned contribution rate increase amount depends on the number of employees. Employers with 25+ covered employees must send a contribution of 0.88% of eligible wages, which can be split between payroll/wage withholdings and employer contribution. Employers with fewer than 25 covered employees must send a contribution of 0.46% of eligible wages. These employers are not required to pay the employer share of the contribution.
This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.
