By Joseph J. Lawler, CEBS
Vice President, Employee Benefits, USI Insurance Services LLC
Like most people you have probably been inundated with information about the Massachusetts Paid Family Leave (MPFL) regulations. However, there are 5 critical things you need to know about the MPFL, as of today! (#5 is especially important, as it needs to be done by the end of June.)
- The regulations are NOT yet set! Many clients are asking questions for which we are either awaiting clarification, or for which there are not yet answers. We recommend you and your clients follow the Department of Family and Medical Leave (DFML) website for the most timely notifications.
- The tax status has NOT been settled. These are regulations of the Commonwealth; they are not Federal. We are still awaiting guidance from the IRS as to the tax status of both contributions and benefits.
- Carriers cannot release any plans, solutions, etc. until the regs are set.
Many carriers have committed to providing administrative and tracking “solutions,” but until the regulations are set these plans will not be released.
- There is a possibility the implementation may be delayed.
A number of business and consumer entities drafted a letter dated May 17, 2019 to the Governor, Senate President, and Speaker of the House requesting a three-month delay in the implementation. There has not been a response to date.
- Even with the above 4 issues, Employers should still observe these requirements and deadlines:
- Display the PFML Workplace Poster and provide a Written Employee Notice now, by the end of June 2019. Download poster and written notice templates HERE. (NOTE: You must make the Employer / Employee contribution decision, as this is included in the Employee Notice.)
- Have a discussion with your payroll vendor to ensure they are prepared for the July 1, 2019, payroll requirements.