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tp7
Experienced Member

Is there an update coming for new MA Family Leave Act effective 10/1/19 - I see no payroll item setup for the new withholding required

 
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Best answer 3 weeks ago

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QuickBooks Team

We always make sure to be in compliant with the federal a...

We always make sure to be in compliant with the federal and state regulations, @tp7.

 

Yes, there’s a payroll update coming for the new MA Family Leave Act. This will be released in the later part of September.

 

Once released, you can set up the employee deductions and company contributions. You can use the Add Payroll Item tool to help you create the 4 new payroll items. Here are the four items:

  • Medical Leave Employer share
  • Medical Leave Covered individual share
  • Family Leave Employer share
  • Family Leave Covered individual share

 

You’ll need to enter the rate so we can calculate the correct portion between the employee and employer responsibility. Here are the two pointers to determine the rates:

  • Figure out how many covered individuals (employees and contractors) you have.
  • Determine what tax rate you are subject to and how to split up the employee and employer tax rates. You can go to the MA state website to review your rates.

 

For more information about this payroll item, check out this article: Massachusetts Paid Family Leave. This will keep you updated about its release and how to add it in the software. 

 

The latest payroll update is 21913 and was released last July 18, 2019. To learn more about what’s included in the recent and previous updates, see this helpful article: Latest Payroll News.

 

I’d also suggest visiting this link to ensure compliance with state payroll tax regulations: https://community.intuit.com/articles/1458569. In this article, you can see the details on your tax forms, withholdings, unemployment tax, e-file and pay information, and employer registration.

 

Please let me know if you need anything else. I’ll gladly help, @tp7.

18 Comments
QuickBooks Team

We always make sure to be in compliant with the federal a...

We always make sure to be in compliant with the federal and state regulations, @tp7.

 

Yes, there’s a payroll update coming for the new MA Family Leave Act. This will be released in the later part of September.

 

Once released, you can set up the employee deductions and company contributions. You can use the Add Payroll Item tool to help you create the 4 new payroll items. Here are the four items:

  • Medical Leave Employer share
  • Medical Leave Covered individual share
  • Family Leave Employer share
  • Family Leave Covered individual share

 

You’ll need to enter the rate so we can calculate the correct portion between the employee and employer responsibility. Here are the two pointers to determine the rates:

  • Figure out how many covered individuals (employees and contractors) you have.
  • Determine what tax rate you are subject to and how to split up the employee and employer tax rates. You can go to the MA state website to review your rates.

 

For more information about this payroll item, check out this article: Massachusetts Paid Family Leave. This will keep you updated about its release and how to add it in the software. 

 

The latest payroll update is 21913 and was released last July 18, 2019. To learn more about what’s included in the recent and previous updates, see this helpful article: Latest Payroll News.

 

I’d also suggest visiting this link to ensure compliance with state payroll tax regulations: https://community.intuit.com/articles/1458569. In this article, you can see the details on your tax forms, withholdings, unemployment tax, e-file and pay information, and employer registration.

 

Please let me know if you need anything else. I’ll gladly help, @tp7.

Frequent Explorer *

Re: We always make sure to be in compliant with the federal a...

This is completely different from the email that was sent yesterday saying it would not be released until the end of October.  This says the later part of September.

 

Which is correct?

 

Beginning October 1, 2019, most Massachusetts employers will be required to make payroll withholdings on behalf their employees for the new MA Paid Family and Medical Leave (PFML) tax. For companies with 25 or more employees, there will also be an employer contribution required.

Currently, we are actively working on adding this new payroll tax item for Massachusetts. While the tax will not be active in your client's payroll account by the effective date of 10/1/2019, we do expect to have it implemented later in October.

When the tax becomes active, an additional email will be delivered explaining that the tax is ready to be setup for your client's employees. At that time, your client will need to login and assign each of their employees to the appropriate rate share. We recommend your client visits the MA PFML website to confirm their rate share and read up on additional information the agency has provided. We have also put together a community article, which contains additional details on the tax and information on setting up in payroll.

After your client has setup all their employees with their MA PFML rate shares, we will run a recalculation to correct any October checks that were created prior to the tax being added. These adjustments will be necessary to calculate the correct total tax due at the end of the 4th quarter. Any amounts not originally withheld for your client's employees will be automatically deducted on future checks once the recalculation is completed.

Thank you for your patience while we work on adding this new payroll tax item and please make sure to follow further instructions that will be delivered via email later in October.

Sincerely,

The Intuit Payroll Team
QuickBooks Team

Re: We always make sure to be in compliant with the federal a...

Thanks for bringing this concern to my attention, @Karen27.

 

We value your time and business. You've got me here to share some insights and clarification about the implementation of the New Paid Family Paid Leave in Massachusetts in QuickBooks Desaktop.

 

QuickBooks is compliant with all the rules that are executed from your state agency. Having that said, we always ensure that our software is updated so you'll be able to do your taxes on time.

 

These changes will take effect on your QuickBooks on October 1, 2019. To give you more details about this, you may check out these resources below:

I'd also, recommend visiting the New Feature section on your QuickBooks to see news, updates and stay up-to-date with the latest events, meetups, and releases.

 

To do that:

  1. Click on Help at the top menu bar.
  2. Select on New Features.
  3. Choose New Feature Tour.

You can always reach back out to the Community should you need anything else about this. I'll be around to lend a helping hand. Have a great day!

Not applicable

Re: We always make sure to be in compliant with the federal a...

It is after the implementation date of 10/1, and there is still no way to add this required deduction in QuickBooks Online payroll.  This law was postponed from the original implementation date of 7/1/2019 to give companies more time for their programming.  Will it really be ready in a couple of weeks?   We are not looking too good in our client's eyes.

QuickBooks Team

Re: We always make sure to be in compliant with the federal a...

Thank you for joining this thread, @EdJaworski.

 

A payroll update will be released in mid November. Rest assured that all your payroll run on or after the effective date of your MA Paid Family Leave payroll deductions and contribution will now be using the newly implemented rates before your filing due dates.

 

With this, I've added this helpful article you can read to learn more about your newly implemented payroll item: Massachusetts Paid Family Leave.

 

Know that you can always visit our Help Articles page for QuickBooks Online Payroll in case you need articles for your future payroll tasks.

 

If there's anything else that I can help you with, please let me know in the comment section down below. I'll be always around ready to help.

Experienced Member

Re: Is there an update coming for new MA Family Leave Act effective 10/1/19 - I see no payroll item setup for the new withholding required

Is anyone else having issues getting the new QuickBooks payroll item for MA PFML liabilities (both employer and employee) effective 10/1/19, to take the correct deduction?  Using 2019 max wages for an illustration ($132,900), MA DOR calculator reflects annual employee withholding to be $502.36 total, or $19.32 biweekly.  The new liability item is not deducting the correct amount.   We've attempted to move the %/decimal within the form boxes in each employee profile, and have retested the calculation in every possible configuration.  We have deleted and recreated the new payroll items.  The only solution we can see at this point it to manually calculate and manually override the correct withholding for each employee.  Please advise.

QuickBooks Team

Re: Is there an update coming for new MA Family Leave Act effective 10/1/19 - I see no payroll it...

Hello there, @NancyK2.

 

Let's make sure that your QuickBooks Desktop is updated so that you can set up the employee deductions and company contributions.

 

In the meantime, you follow the steps provide by my colleagues above.

 

For further details about the recent updates, you can check out these articles:

On the other hand, if the same thing happens. I suggest contacting our QuickBooks Desktop Care Team, they have tools such as screen sharing that will guide you step-by-step throughout the process. 

 

Here's how to reach them:

  1. Go to: https://help.quickbooks.intuit.com/en_US/contact.
  2. If asked, choose your QuickBooks product.
  3. Select your QuickBooks version.
  4. On the Contact Us page, click a topic.
  5. Click on the Get Phone Number button to see the support number.

As always, feel free to reach out to us if you have other questions or concerns. We're always here to help you. Have a great day!

Experienced Member

Re: Is there an update coming for new MA Family Leave Act effective 10/1/19 - I see no payroll item setup for the new withholding required

Found solution 

 
Re: Items for MA paid family medical leave are not calculating the correct deduction in QB desktop. Any ideas?
 
 

you have to put 100% in the employee tax tab for the percentage for MA-Paid Family Leave Emp., and 40% in the employee tax tab for the percentage for MA-Paid Medical Leave Emp.  And, this is because the tax rates are already set up through QuickBooks in the payroll items.

Not applicable

Re: We always make sure to be in compliant with the federal a...

There is nothing set up in Intuit online payroll system. When would this be ready?

Anonymous
Not applicable

Re: We always make sure to be in compliant with the federal a...

Hi, samiotes2019.

 

We are currently finalizing everything for QuickBooks Online payroll. Upon checking my resources, the updates are set to be released in November 2019. 


Once it’s updated, the system will calculate all the affected paychecks from October 1 until the released date. Check this out to learn more about this: Massachusetts Paid Family Leave


Drop your posts again if you have other questions. 
 

Experienced Member

Re: Is there an update coming for new MA Family Leave Act effective 10/1/19 - I see no payroll item setup for the new withholding required

I am on desktop and accidentally set up my company for the higher FMLA combined rate of .75% and there is no way to edit the payroll item change it to the lower .378% rate for companies with fewer than 25 employees.  Will there be a fix for this?  

 

In the meantime, I can do a liability adjustment but would rather be able to edit the % amount.

QuickBooks Team

Re: Is there an update coming for new MA Family Leave Act effective 10/1/19 - I see no payroll it...

There's a way you can edit the tax rates, martita6.

 

You can go to the employee's tax profile where you can change the info. Here's how:

 

  1. Go to the Employee Center and proceed to the Employees tab. 
  2. Select an employee and double-click the name to open its profile.
  3. Select Payroll Info, then click Taxes.
  4. Go to the Other tab.
  5. Select and click Paid Family Leave.
  6. Edit the tax rate for both the employee and employer portion.
  7. Click OK.

You can also refer to this article for adjusting the amounts in case the paychecks were already created: Adjust Payroll Liabilities In QuickBooks Desktop.

 

I'll get back here if you have follow-up questions. We want to make sure you have the correct tax amounts for this payroll item.

Not applicable

Re: Is there an update coming for new MA Family Leave Act effective 10/1/19 - I see no payroll it...

What about for Intuit Online Payroll? 

QuickBooks Team

Re: Is there an update coming for new MA Family Leave Act effective 10/1/19 - I see no payroll it...

Yes, our product team is working to add this to Intuit Online Payroll, samiotes2019.

 

We'll release a payroll update in mid November. You missing taxes since October 1 will then be recalculated.

 

You can follow this article to stay updated about the leave: Massachusetts Paid Family Leave. Just go to the section for Intuit Online Payroll.

 

Always remember that you can count on us about your taxes. Have a good day!

Established Member

Re: Is there an update coming for new MA Family Leave Act effective 10/1/19 - I see no payroll it...

So what your saying is approx. 45 days after implementation of the tax, you will have a fix?  I have been calculating the tax for each individual employee as Quickbooks does not do this correctly.  Does this mean that you will DOUBLE the tax when you finally get around to solving this problem?

 

"Always remember that you can count on us about your taxes. Have a good day!" SMH

Moderator

Re: Is there an update coming for new MA Family Leave Act effective 10/1/19 - I see no payroll it...

It will not be doubled, Dissapointed1.

 

Once a payroll update will be released, QuickBooks will automatically adjust your payroll in the next succeeding paychecks. 

 

You can always take a look at the article provided by JessT to stay updated with the MA Paid Family Leave.

 

If you have other concerns, please let me know. I'd be pleased to help you.

Active Member

Re: We always make sure to be in compliant with the federal a...

I need assistance with new PFML tax in MA. I need someone to help me add the share of the premium the employees will pay

QuickBooks Team

Re: We always make sure to be in compliant with the federal a...

Thank you for joining the thread, @bobbie7.

 

I can share some insights about the new Paid Family Leave tax in Massachusetts.

 

Last October 1, 2019, the state of Massachusetts has implemented the new Paid Family Leave program. The total insurance premium is .75% for 2019 and is calculated on employee's gross wages up to the Social Security limit. Employees and employers may split the payment of the full program.

 

In addition, if you have less than 25 covered individuals, your combined rate is .38%.

 

You can check the Massachusetts Paid Family and Medical Leave website for more insights: Paid Family and Medical Leave Information for Massachusetts Employers.

 

I'm also adding this article for your future reference about determining what tax rate you are subject to and how to split up the employee and employer tax rates: Massachusetts Paid Family Leave.

 

Let me know if you have any other questions about the Massachusetts Paid Family Leave. I'll be right here to help!

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