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Set up New Hampshire Voluntary Paid Family Medical Leave (PFML)

SOLVEDby QuickBooksUpdated January 16, 2024

Learn how to set up QuickBooks Payroll to track paid family and medical leave in New Hampshire.

New Hampshire has implemented a voluntary paid family medical leave program, called Paid Family and Medical Leave (NH PFML). The program gives employees paid time off to care for themselves, ill family members, or a new child. 

Unlike traditional state-mandated PFML plans, NH PFML is voluntary for both you and your employees.  
Find out more about NH PFML.

How the NH PFML program works

  • This program is optional for both you and your employees.
  • You can get PFML insurance from MetLife.
  • You can get a Business Enterprise Tax (BET) credit equal to 50% of the NH PFML insurance premium you pay (doesn’t cover employee contributions). 
    • Complete and send form DP-160 to the NH Department of Revenue Administration to claim the BET credit.
    • If you purchase other PFML insurance plans, you don’t qualify for the BET credit. 
  • If you don’t provide coverage, your employees can purchase a NJ PFML individual insurance plan through MetLife during open enrollment, January 1, 2023 through March 2, 2023. 
  • If you have less than 50 employees, you can (but aren’t required to) collect premium payments through payroll deductions. Otherwise, your employees need to make  the payments. 
  • If you have 50 or more employees, you’re required to collect your employee premium payments through payroll deductions. If you pay 100% of their premium, you don’t have to take payroll deductions. 
  • You’ll need to pay and report the premiums yourself. 

Add NH PFML to your employees

Select your product below.

Note: Not sure which payroll service you have? Here's how to find your payroll service.
  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Deductions & contributions, select Start or Edit.
  4. From the Deduction/contribution ▼ dropdown, select + Add deduction/contribution.
  5. From Deduction/contribution type, select Other Deduction.
  6. From Type select The Granite State Paid Family Leave Plan.
  7. Enter the per payroll deduction amount for the employee and an annual limit if applicable.
  8. Enter the company contribution amount and annual limit if applicable.
  9. Select Save then Done.

Step 1: Set up an employee deduction item

  1. Go to Lists, then select Payroll Item List.
  2. Select Payroll Item, then select New Payroll Item.
  3. Select Custom Setup, then select Next.
  4. Select Deduction, then select Next.
  5. Name the item (NH PFML - EE Deduction), then select Next
  6. Select or fill in the information for the MetLife provider, then select Next.
  7. Select None as the tax tracking type, then select Next twice.
  8. Select Neither, then select Next.
  9. Select Net Pay, then select Next.
  10. Select Finish.

Step 2: Set up a company contribution item, if needed

  1. Go to Lists, then select Payroll Item List.
  2. Select Payroll Item, then select New Payroll Item.
  3. Select Custom Setup, then select Next.
  4. Select Company Contribution, then select Next.
  5. Name the item (NH PFML - EE Deduction), then select Next
  6. Select or fill in the information for the MetLife provider, then select Next.
  7. Select None as the tax tracking type, then select Next twice.
  8. Select Neither, then select Next.
  9. Select Finish.

Step 3: Add the items to your employees

  1. Go to Employees, then select Employee Center.
  2. Double-click your first employee. 
  3. Select Payroll Info
  4. From the Additions, Deductions, and Company Contributions box add the applicable items.
  5. Enter the dollar amount to be deducted for the employee portion and the company contribution (if applicable). If there’s a limit, enter it.  The limit will reset each year.
  6. Select OK.
  7. Repeat steps 2 - 6 for each employee. 

Exempt employees from NH PFML

You don’t need to add the NH PFML - Deduction and Company contribution items to your employee’s profile if your employee is exempt from New Hampshire Paid Family and Medical Leave.

Edit or delete NH PFML

Edit or Delete NH PFML

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Deductions & contributions, select Start or Edit.
  4. Select Edit ✎ to modify the plan or select the trash bin icon to remove it.
  5. Select Done.

To edit the payroll item

  1. Go to Lists, then select Payroll Item List.
  2. Right-click the item and select Edit Payroll Item.
  3. Change the info as needed on each window.
  4. Select Finish.

To change the amount for your employee

  1. Select Employees, then Employee Center.
  2. Select your employee.
  3. Select Payroll Info.
  4. In the Additions, Deductions and Company Contributions section, change the NH PFML amount or limit.
  5. Select OK.

To remove the payroll item from your employee profile

  1. Select Employees, then Employee Center.
  2. Select your employee. 
  3. Select Payroll Info.
  4. In the Additions, Deductions and Company Contributions section, select the amount (if there's any), and the item name, then press Delete on your keyboard.
  5. Select OK when done.

To delete the payroll item

If the payroll item wasn't used on paychecks, you can delete it from the payroll item list. If it was used, you can edit the item and rename it Do Not Use.

  1. Go to Lists
  2. Select Payroll Item List.
  3. Right-click the item and select Delete Payroll Item.
  4. Select OK on a message, Are you sure you want to delete this payroll item?

Get a report for NH PFML 

If you use QuickBooks Online Payroll, you can run a Payroll Tax Liability report to see your NH PFML amounts.  See Run payroll reports.

If you use QuickBooks Desktop Payroll, you can run a Payroll Liability Balances report to see your NH PFML amounts.  See Run payroll reports.

Frequently asked questions

Who counts as an employee?

  • All employees, no matter where that employee works, are used to determine the employer’s account 
  • Only employees with a work location in New Hampshire will qualify for the program

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