Massachusetts State Medical and Family Leave Premium Contributions

Beginning October 1, 2019, if you are an employer in Massachusetts, you need to set up one or two new payroll calculations, as follows:

  • The employer’s contribution to medical leave.

    You are required to pay medical premiums if you employ more than 25 people.

  • The employee’s portion of family and medical leave.

    You are required to collect these premiums regardless of the number of people you employ.

This topic helps you to set up the calculations in Sage 100 Contractor. For detailed information on the provisions of the legislation, see the Massachusetts State Paid Family and Medical Leave web page at https://www.mass.gov/info-details/family-and-medical-leave-contribution-rates-for-employers.

Notes:  

  • The ceiling on wages subject to contributions for family and medical leave is the same as the ceiling for Social Security ($160,200 for 2020).
  • The responsibility to pay medical leave premiums may be shared between employer and employee.
    • Employers with fewer than 25 covered employees are not required to pay a share of the premiums. In this case, the contribution rate for the employee for both medical and family leave is 0.378 of eligible wages.
    • Employers with more than 25 covered employees must pay a portion of the medical premium. In this case, the combined contribution rate for employee and employer for both medical and family leave is 0.75 of eligible wages. Employers are responsible for 60% of the medical leave contribution (0.372% of eligible wages). Employees are responsible for 40% of the medical leave contribution as well as the entire family leave contribution (0.378% of eligible wages).
  • The responsibility for the family leave premium is the employee's.

Important! The rates shown for calculating the premium contributions below are guides only. It is your responsibility to confirm the rate annually, and to make any adjustments required.

  • Total effective contribution for employers with more than 25 employees: 0.75% of an employee's eligible wage
  • Total effective contribution for employers with fewer than 25 employees: 0.378% of an employee's eligible wage

To set up the employer's contribution for medical leave (if you have more than 25 covered employees):

Open 5-3-1 Payroll Calculations, and then:

  • For the Tax Type, select 21 – Employer State Paid Leave.

  • For the Default Rate, enter the employer's contribution rate of 0.372.

  • For the Default Max, enter $160,200.

    The ceiling on wages subject to contributions for family and medical leave is the same as the ceiling for Social Security.

  • For the Max Type, accept the selection of 4 – Wages/Year.

To set up the employee's deduction for family and medical leave

Open 5-3-1 Payroll Calculations, and then:

  • For the Tax Type, select 20 – Employee State Paid Leave.

  • For the Default Rate, enter the rate of 0.378.

  • For the Default Max, enter $160,200.

    The ceiling on wages subject to contributions for family and medical leave is the same as the ceiling for Social Security.

  • For the Max Type, accept 4 – Wages/Year.

  • For the W-2 box, enter 14.

  • For the W-2 Code, enter MAPFML.