Home/ Special Taxes/ Massachusetts Paid Family and Medical Leave (PFML)

Massachusetts Paid Family and Medical Leave (PFML)

Overview

Massachusetts Paid Family and Medical Leave (PFML) is a mandatory program for most employers. The program provides eligible employees with paid time off for family and medical leave needs. ProPay manages PFML contributions through its local tax functionality.

Note: PFML contribution rates and wage caps are updated annually by the Massachusetts Department of Family and Medical Leave. Always verify current rates at the start of each calendar year.

2026 Contribution Rates

Contribution rates vary based on employer size and leave type.

Employers with 25 or More Covered Individuals

Total contribution: 0.88% of eligible wages

Leave Type Total Rate Employee Share Employer Share
Medical Leave 0.70% 0.28% 0.42%
Family Leave 0.18% 0.18% 0.00%
Combined Total 0.88% 0.46% 0.42%

Employee maximum contribution: 0.46% of eligible wages Employer contribution: 0.42% of eligible wages

Employers with Less Than 25 Covered Individuals

Total contribution: 0.46% of eligible wages (employee contribution only) Employer contribution: Not required

Small employers (fewer than 25 employees) are not required to contribute to PFML, but must withhold the employee portion.

Wage Cap

Individual contributions are capped by the Social Security taxable maximum ($184,500 for 2026).

Setting Up PFML in ProPay

For Employers with Less Than 25 Employees

  1. Go to Employer > Employer Setup > Screen 2 (State and Local Taxes).
  2. Add the locality: MA-PFML-EE.
  3. Click Save.

This setup will:

  • Deduct the employee portion (0.46%) from paychecks
  • Not accrue employer liability

For Employers with 25 or More Employees

  1. Go to Employer > Employer Setup > Screen 2 (State and Local Taxes).
  2. Add two localities:
    • MA-PFML-EE (employee portion)
    • MA-PFML-ER (employer portion)
    1. Click Save.

    This setup will:

    • Deduct the employee portion (0.46%) from paychecks
    • Accrue the employer liability (0.42%)

    How Employee Count is Determined

    The number of covered individuals is based on the average number of employees in your workforce during the previous calendar year.

    To calculate:

    1. Count covered individuals each quarter
    2. Add the four quarterly counts
    3. Divide by 4 to get the average

    Employees are considered "covered individuals" if they received wages subject to Massachusetts unemployment insurance.

    Private and Self-insured Plans

    Employers may apply for exemption from PFML if they have an approved private or self-insured plan that provides equal or greater benefits than the state program.

    If you have an approved exemption:

    • Do not add PFML localities in ProPay
    • Do not withhold PFML contributions
    • Maintain your private plan's withholding and reporting separately

    Troubleshooting

    PFML Deductions Not Appearing on Paychecks

    Solution:

    1. Go to Employer > Employer Setup > Screen 2 (State and Local Taxes) and check that the correct locality (MA-PFML-EE) is added
    2. Verify the employee's wages are within the eligible range (below the Social Security wage cap)
    3. Ensure the employee is not exempt due to an approved private or self-insured plan
    4. Confirm the employee worked in Massachusetts

    Employer Contribution Not Calculating Correctly

    Solution:

    1. Confirm your company has 25 or more covered individuals based on the previous year's average
    2. Go to Employer > Employer Setup > Screen 2 (State and Local Taxes) and verify that both localities are added:
      • MA-PFML-EE
      • MA-PFML-ER
      1. Check that ProPay's PFML tax tables are up-to-date
      2. If you recently crossed the 25-employee threshold, ensure you updated your setup accordingly

      Incorrect Contribution Amounts

      Solution:

      1. Verify the current year's contribution rates (0.46% employee, 0.42% employer for large employers)
      2. Check that wages subject to PFML do not exceed the Social Security wage cap
      3. Ensure you're using the correct employer size category
      4. If the issue persists, contact Paysoft support

      Frequently Asked Questions

      Q: Do all Massachusetts employees participate in PFML? A: Most employees are covered. Limited exceptions include self-employed individuals (unless they opt in) and certain federal employees.

      Q: Can employers pay the employee portion of PFML? A: Yes, employers may choose to pay all or part of the employee contribution, but this is not required.

      Q: How often are PFML contributions remitted? A: PFML contributions are reported and remitted quarterly through MassTaxConnect.

      Q: What if an employee works in multiple states? A: PFML applies to employees performing work in Massachusetts. For multi-state employees, consult with a payroll tax professional.

      Q: When did PFML contributions begin? A: Employer and employee contributions began on October 1, 2019. Benefits became available starting January 1, 2021.

      Reporting and Remittance

      Quarterly Reporting

      Massachusetts employers must report and remit PFML contributions quarterly through MassTaxConnect.

      Quarterly Due Dates:

      Quarter Period Due Date
      1st Quarter January - March April 30
      2nd Quarter April - June July 31
      3rd Quarter July - September October 31
      4th Quarter October - December January 31

      Additional Resources

      Related Topics

      ← Back to Index