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Set up and manage Massachusetts Paid Family and Medical Leave

SOLVEDby QuickBooks75Updated 1 month ago

Massachusetts has implemented Paid Family and Medical Leave (PFML). With QuickBooks Payroll, you can set up this insurance for your covered employees. If you have full service payroll, we'll pay and file this tax for you.

To learn more about paid family and medical leave, visit Massachusetts Paid Family and Medical Leave website.

How the Massachusetts Paid Family and Medical Leave program works

Use this Paid Family and Medical Leave Contribution Calculator to determine what portion of the tax you're subject to based on the number of covered individuals. Then enter the share of the employer and covered individual contribution into payroll so we can calculate correctly.

Note: Not sure which payroll service you have? Here's how to find your payroll service.

Add MA PFML to your employees

Step 1: Set up the policy for all employees

  1. Go to Settings ⚙, then select Payroll Settings.
  2. From Massachusetts tax, select Edit.
  3. From Massachusetts Paid Family and Medical Leave Tax (PFML), select Start.
  4. Select the number of covered individuals. 
  5. Enter your account number. 
  6. Select Define rates.
  7. Enter or select the following.
    1. Name.  (Example: Hourly, Salary, Warehouse, Front office)
    2. Contribution effective date.
    3. Employer and employee contribution % rates for Family leave and Medical Leave.
  8. Select Save.
  9. If you have more than one policy, select + Create contribution rates, then add the policy info.
  10. Select Save, then Done.

Step 2: Add the policy to your individual employees

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Tax withholding, select Edit.
  4. From State withholding, Massachusetts Paid Family and Medical Leave, select +Assign Policy.
  5. Select the policy name, then select Save.
  6. Repeat for each covered employee.
  7. Select Save.

If you have already run paychecks before setting up this rate, the employee will have any catch-up amounts deducted from their next paycheck.

Download and install the latest payroll update. When you add a new or an employee that is subject to Massachusetts Paid Family and Medical leave, the taxes will appear on the Other tab in the Taxes window. You can remove items or adjust the rates from this tab.

Important: If you’re asked during the interview if this rate is part of the UI rate, select No. The tool will create two new payroll items related to the MA tax.

Edit or delete MA PFML

Edit your contribution rates

  1. Go to Settings ⚙, Payroll Settings.
  2. From Massachusetts tax, select Edit.
  3. In the Massachusetts Paid Family and Medical Leave Tax (PFML) section, select Edit from the active policy. 
  4. Change your contribution rates as needed. 
  5. Select Save twice, then Done.

Remove employee’s policy

You need to remove the employee’s active policy first if you want to change it to a different policy with the same effective date and year.

Also, you can’t remove an active policy if there are two or more policies assigned in the same year with different effective dates. 

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Tax withholding, select Edit.
  4. From State withholding, select Unassign next to the employee’s policy.
  5. Select Unassign to confirm action.
  6. Select Save.

Enter or change the employee or company percentage

  1. Go to Employees, then select Employee Center.
  2. Double-click your employee's name.
  3. Select Payroll Info, then Taxes.
  4. In the Taxes window, select the Other tab.
    • Select the MA - Paid Medical Leave Co. item. In the Co. Portion Rate field, enter the company share of the premium portion rate as a whole number (no decimals). Example: 60.
    • Select the MA - Paid Medical leave Emp. item. In the Emp. Portion Rate field, enter the employee share of the premium portion rate (no decimals). Example: 40.
    • Select the MA - Paid Family Leave Co. item. In the Co. Portion Rate field, enter the company share of the premium portion rate as a whole number (no decimals). Example: 0.
    • Select the MA - Paid Family Leave Emp. item. In the Emp. Portion Rate field, enter the employee share of the premium portion rate (no decimals). Example: 100.
  5. Select OK, then Save & Close.
  6. Repeat steps 2 - 5 for each covered employee.

If you have already run paychecks before setting up this rate, the employee will have any catch-up amounts deducted from their next paycheck.

Add or edit your account number for this tax

  1. Go to Lists, then Payroll Item List.
  2. Double-click the MA PFML payroll item.
  3. Select Next until you get to the Agency for company-paid liability window.  Next to Enter the number that identifies you to the agency window enter your id number.
    • If you are using Assisted payroll, the account number is your MA DOR Account Number with PFM in front of it (for example, PFM-12345678-123)
  4. Select Next twice, then Finish.

Delete MA PFML items from your employees profile

  1. Go to Employees, then select Employee Center.
  2. Double-click your employee’s name.
  3. Select Payroll Info
  4. Select Taxes, then Other.
  5. In the Taxes window, select: 
    • MA - Paid Medical Leave Co., then Delete.
    • MA - Paid Medical leave Emp., then Delete.
    • MA - Paid Family Leave Co., then Delete.
    • MA - Paid Family Leave Emp., then Delete.
  6. Select OK, then Save & Close.

Exempt employees from MA PFML

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Tax withholding, select Edit.
  4. Under MA state taxes, select [employee] is exempt from this contribution
  5. Select Save.

If you want to exempt an employee from MA PFML, here's what you need to do.

  1. Go to Employees and select Employee Center.
  2. Double-click your employee's name.
  3. Select Payroll Info.
  4. Select Taxes, then Other.
  5. Select Taxes, then Other.
  6. In the Taxes window, select: 
    • MA - Paid Medical Leave Co., then Delete.
    • MA - Paid Medical leave Emp., then Delete.
    • MA - Paid Family Leave Co., then Delete.
    • MA - Paid Family Leave Emp., then Delete.
  7. Select OK, then Save & Close.

Frequently Asked Questions (FAQ)

To accommodate the differences in employee and employer liabilities based on the number of covered individuals, we have programmed our payroll systems to calculate the rates as percentage of shares. This matches the Paid Family and Medical Leave Contribution Calculator provided by the state of Massachusetts.

Yes, 1099 contractors should be included in the calculation of the Paid Family leave tax. Use this Paid Family and Medical Leave Contribution Calculator to determine how 1099s contractors are included in your calculations.

Intuit cannot include 1099 contractors in our payment or filings. You must add your contractor information via the state website.

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