Increase of State Paid Family Leave Programs
A growing number of states are taking action to add paid family and medical leave (PFML) programs that provide support for workers and their loved ones.
This trend has increased since the Covid pandemic, as we’ve seen 8 new states pass legislation requiring paid leave programs. All together, 13 states currently have mandatory paid leave programs, including Maine and Delaware, which just kicked off payroll contributions to their programs in January 2025.
These programs offer workers partial wage replacement when they need to take time off for various reasons, including caring for family members, bonding with a new child, or for recovering from a serious health condition.
State paid family and medical leave programs are funded by employee or employer payroll contributions (and in some cases both). Rules and contribution rates are different for each state.
Does QuickBooks Payroll support these PMFL programs?
Yes! QuickBooks Payroll supports the ability to track and pay payroll contributions for all mandatory PMFL programs. The steps to manage these programs vary depending on the QuickBooks Payroll product and service level chosen by a business.
We simplify the complex nature of these new programs for employers in these states. State bills are tracked through every step until they pass and become laws. Then, we add the ability to calculate payroll contributions and populate any necessary tax forms. Employers using QuickBooks Payroll can have the ease of mind in knowing that they are complying with the new law.
Details on state PFML programs and steps to manage them in QuickBooks
California
California employees contribute to the state's Paid Family Leave program via a 1.2% “state disability insurance” (SDI) payroll contribution. California SDI payroll contributions are automatically deducted from applicable California employee paychecks in QuickBooks Payroll. These payroll contributions are then paid to the agency when withholding deposits are submitted based on the tax deposit schedule of each employer.
- To learn more about California’s paid leave program, visit the agency’s website.
Colorado
Colorado’s PFML program kicked off with payroll contributions starting on January 1, 2023. The total contribution rate is 0.9% and is paid on the first $176,100 in wages in 2025.
- For more information and steps to set up in QuickBooks, visit our CO PFML article.
- To learn more about Colorado's PFML program, visit the agency’s website.
Connecticut
Connecticut implemented a standalone paid family leave program funded by the collection of taxes from employees. The tax rate is 0.5% of employee taxable wages up to the Social Security (SS) limit ($176,100 for 2025).
- For more information and steps to set up in QuickBooks, visit our CT PFML help article.
- To learn more about Connecticut’s PFML program, visit the agency’s website.
Delaware
Delaware’s PFML payroll contributions began on January 1, 2025. All Delaware employers without a private plan and 10 or more employees working (or reclassified) in Delaware must contribute to the program. The total tax rate employers pay into varies based on employee size.
Employers are responsible for all contributions required by the program, but can deduct up to 50% of the required contributions from their employee’s wages.
- For more information and steps to set up in QuickBooks, visit our DE PFML article.
- To learn more about Delaware’s PFML program, visit the agency’s website.
District of Columbia
The District of Columbia implemented a PFML program and effective dating back to July 1, 2024, the tax rate is 0.75% of taxable wages with no wage limit. The employer pays the full portion of the PFML contribution.
- For more information and steps to set up in QuickBooks, visit our DC PFML article.
- To learn more about the DC PFML program, visit the DC PFML website.
Illinois
Illinois has implemented a paid leave law called the Paid Leave for All Workers Act (PLAWA). This law guarantees most workers in Illinois 40 hours of paid time off each year for any reason. It took effect on January 1, 2024.
- For more information and steps to set up in QuickBooks, visit our IL PFML article
- To learn about Illinois PFML program, visit the Paid Leave for All Workers Act FAQ.
Maine
The state of Maine has implemented a new Paid Family and Medical Leave program that takes full effect on January 1, 2026. Payroll contributions to the program began on January 1, 2025.
Employers with less than 15 employees are exempt from the employer share but must withhold a 0.5% contribution rate from employees. The employer can pay this or deduct it from the employees’ wages.
Employers with 15 or more employees are subject to a 1% contribution rate. Employers and employees can share costs, which means employers will pay 0.5% of the contribution, and employees will pay 0.5%.
- For more information and steps to set up in QuickBooks, visit our ME PFML article
- To learn more about Maine's PFML program, visit the ME PFML website.
Maryland
Maryland’s PFML program was originally supposed to launch in July of 2025, but legislation was recently proposed to extend the timeline out to 2027.
To learn more about Maryland's upcoming paid PFML program, visit the agency’s website.
Massachusetts
The Massachusetts Paid Family and Medical Leave (PFML) program began on January 1, 2021. The program provides benefits and job protection to eligible employees who take time off for medical or family reasons. MA has a Paid Family and Medical Leave Contribution Calculator to determine tax employers are subject to based on number of covered individuals.
- For more information and steps to set up the MA PFML in QuickBooks, visit our MA PFML help article.
- To learn more about Maine's PFML program, visit the agency’s website.
New Jersey
New Jersey implemented their paid family leave insurance program back in 2008. For 2025, the employee tax rate is 0.33% and calculates against the first $165,400 in covered wages for the year. QuickBooks Payroll automatically updates this rate and applies any rate changes for our NJ employers. It is then reported on the quarterly form provided in QuickBooks Payroll along with unemployment taxes.
- To learn more about New Jersey's paid leave program, visit the agency’s website.
Oregon
Contributions to Oregon's Paid Leave program began on January 1, 2023. The program went into effect in 2023, and employees could start applying for benefits on September 3, 2023.
Employees contribute 0.6% of their gross pay, up to $132,900 in wages per year.
Employers with more than 25 employees contribute 0.4% of each employee's gross pay.
- For more information and to set up the OR PFML in QuickBooks, visit our OR PFML help article.
- To learn more about Oregon's PFML program, visit the agency’s website.
Rhode Island
Rhode Island became the third state to offer paid leave for non-work-related illness or injury back in 2013. Employees pay into the program at a rate of 1.3% on the first $89,200 in wages. The Rhode Island TDI deduction is automatically deducted in QuickBooks and reported on the quarterly unemployment insurance form.
- To learn more about Rhode Islands PFML program, visit the agency's website.
Washington
Washington implemented Paid Family and Medical Leave payroll contributions beginning back in January of 2019. All employers within the state of Washington State (with very few exceptions) must report employees’ wages and hours and pay premiums each quarter.
- For steps to identify paid leave tax rates and to set up the program in QuickBooks, visit our WA PFML article
- To learn more about Washington's PFML program, visit the agency’s website.
