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Intuit

Set up Massachusetts Paid Family and Medial Leave

Massachusetts has implemented Paid Family and Medical Leave (PFML). With QuickBooks and Intuit Online payroll, you can set up this insurance for your covered employees. If you have full service payroll, Intuit will 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 which payroll service you have.

Add Massachusetts Paid Family and Medical Leave to your employees

  1. Go to Payroll, then select Employees.
  2. Select the employee's name.
  3. Select Edit employee.
  4. In the withholding sections, select Edit .
  5. Select Massachusetts state taxes.
  6. Under Individuals covered, select the dropdown menu and choose how many covered individuals you have.
  7. Enter an Effective date.
  8. Under Family leave and Medical Leave, complete the following fields:
    • Medical Leave Employer share: Company share percentage as a whole number (no decimals). Example: 60.
    • Medical Leave Covered Individual share: Employee share percentage as a whole number (no decimals). Example: 40.
    • Family Leave Employer share: Company share percentage as a whole number (no decimals). Example: 0.
    • Family Leave Covered Individual share field. Enter the employee share percentage as a whole number (no decimals). Example: 100.
  9. Select Done.
  10. Repeat 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.

Download and install the latest payroll update 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.

To enter or change the employee or company percentage:

  1. Go to Employees and select Employee Center.
  2. Double-click the employee's name to open the Edit Employee window.
  3. Go to the Payroll Info tab and select Taxes.
  4. In the Taxes screen that pops up, select the Other tab.
    • Select the MA - Paid Medical Leave Co.  line. 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. line. 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.  line. 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. line. In the Emp. Portion Rate field, enter the employee share of the premium portion rate (no decimals). Example: 100.
  5. Select OK twice to close the window.
  6. Repeat for each covered employee.

To add your account number as the Tax ID for this tax:

  1. Go to Lists then Payroll Item List.
  2. Double-click the payroll item you want to adjust.
  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.
  5. Verify your rate.
  6. Select Next then select Finish.

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

  1. Go to Employees and select the employee's name.
  2. In the Taxes & Exemptions or Taxes section, select Edit.
  3. In the MA state section, fill in the following fields:
    • Medical Leave Employer share:  Company share percentage as a whole number (no decimals). Example: 60.
    • Medical Leave Covered Individual share: Employee share percentage as a whole number (no decimals). Example: 40.
    • Family Leave Employer share: Company share percentage as a whole a whole number (no decimals). Example: 0.
    • Family Leave Covered individual share: Employee share percentage as a whole number (no decimals). Example: 100.
  4. Select OK.

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

Exempt employees from Massachusetts Paid Family and Medical Leave

  1. Select Payroll then Employees.
  2. Select the employee's name.
  3. Select Edit employee.
  4. In the withholding sections, select Edit ✎.
  5. Under Massachusetts state taxes, select This employee is exempt from this contribution
  6. Select Done.

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 the employee's name to open the Edit Employee window.
  3. Select the Payroll Info tab and select Taxes.
  4. In the Taxes screen that pops up, select the Other tab.
  5. Select each MA Paid Medical leave tax.
  6. Enter 100% in the employee premium fields (40% for Medical Leave if  you have 1-24 covered individuals).
  7. In the Exemptions section, select Edit.
  8. Select MA Paid Family and Medical Leave Premium, then Save.
  9. Select OK.
  1. Select Employees then select the name of the employee.
  2. In the Taxes and Exemptions section, select Edit.
  3. Ensure the tax is selected.
  4. Select Save.

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.

If you already paid employees in October before these tax items are released:

  • For QuickBooks Desktop payroll, adjust payroll liabilities per employee to catch up.
  • For online payroll, contact us for recalculation. From the Help section in your online payroll, select Contact us to connect with a payroll support.

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