Massachusetts is reversing its paid family and medical leave (PFML) paycheck deductions structure next year.
The state PFML law requires large employers (with 25 or more covered workers within Massachusetts) to remit the full 0.88% in PFML contributions to the state – this represents both the medical leave and the family leave percentages.
Currently, up to 100% of the family leave contribution may be deducted from the pay of employees and covered independent contractors. Up to 40% of the medical leave contribution may be deducted from the pay of employees and covered independent contractors; employers are responsible for contributing the remaining medical leave contribution of at least 60%.
However, small employers (with 24 or fewer workers) do not have to contribute an employer share for medical leave (unless they want to). But they are responsible for withholding and remitting up to 0.46% of the pay of covered employees and/or independent contractors for medical leave, and up to 100% of the pay of covered employees and/or independent contractors for the family leave portion of contributions.
The table below illustrates how the employer’s and employees’ shares are broken up:
| Total contribution (0.88%) | |||
| Medical contribution (0.70%) | Family contribution (0.18%) | ||
| Employer share (0.42%) | Employee share (0.28%) | Employer share (0%) | Employee share (0.18%) |
Starting January 1, however, large employers may withhold from covered workers’ wages up to 100% of the medical leave contribution and up to 40% of the family leave contribution. For example:
| Total contribution (0.88%) | |||
| Medical contribution (0.18%) | Family contribution (0.70%) | ||
| Employer share (0%) | Employee share (0.18%) | Employer share (0.42%) | Employee share (0.28%) |
| NOTE: This example uses a total contribution rate of 0.88%. However, the actual 2027 total contribution rate will not be set until October 1. | |||
Massachusetts legislators made these changes in response to a 2025 Internal Revenue Service ruling that it would treat employer contributions to medical leave as taxable income. Washington has made similar changes, which took effect last month. It remains to be seen whether other states will follow in their footsteps.
The Massachusetts Department of Family and Medical Leave provides an online calculator to help employers estimate their required contributions.
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