Massachusetts has one of the most comprehensive Paid Family and Medical Leave (PFML) programs in the country. Since 2019, contributions have been required from both employers and employees — but here’s the issue:
Many businesses are paying more than they need to.
That’s usually because payroll isn’t set up correctly, or the employer was never told how the split is supposed to work.
Massachusetts employees can take:
Up to 12 weeks of family leave (bonding with a child, caring for a loved one, or military exigency)
Up to 20 weeks of medical leave for their own serious health condition
Up to 26 weeks for caring for an injured military service member
That’s a potential 26 weeks of job-protected leave — a big benefit that employees value, and one that state law requires.
The PFML program is funded by a payroll contribution of 0.88% of eligible wages, capped at the Social Security wage base. Here’s how it’s split:
Employees: Always pay a portion (through automatic payroll deductions)
Employers with 25 or more covered employees: Required to pay part of the medical leave contribution
Employers with fewer than 25 employees: Exempt from the employer share, but must still withhold and remit the employee portion
This means the exact cost depends on your headcount and how your payroll system is configured.
We’ve seen mistakes like:
Employers covering the entire 0.88%, even though employees are supposed to pay their share
Payroll companies that don’t adjust the contribution based on company size
Reports that lump PFML into other taxes, leaving no visibility on what’s really being deducted
The result? Employers are left paying thousands more than they legally owe.
Massachusetts enforces PFML strictly, and errors can lead to:
Back payments and penalties if contributions weren’t withheld properly
Benefit issues for employees if contributions aren’t reported
Cash flow problems for employers covering costs they don’t need to
We make sure you’re never paying more than you should. With Baron Payroll:
Contributions are set up accurately from day one
Employee and employer portions are calculated automatically
Every deduction appears as a clear line item on pay stubs
We keep you informed about annual rate changes and compliance updates
The bottom line: You’ll know exactly what you’re paying — and what your employees are contributing.
If your payroll company hasn’t explained how Massachusetts PFML is funded, you might be paying for their mistake.
👉 Use our instant price calculator — no sales call required.
Or visit https://www.baronpayroll.com/itin-service to learn more.
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