The HR Compass

Massachusetts Paid Family and Medical Leave Benefit Calculations and Withholdings are Changing in 2022

Dec 31, 2021

Massachusetts employers need to be aware of upcoming changes to Paid Family and Medical Leave (PFML) benefits and employee withholding amounts, effective January 1, 2022. 

Maximum Weekly Benefit Increases

When an employee qualifies to receive PFML benefits, the amounts are determined based on the percentage of the individual employee’s earnings and the average weekly wage for workers throughout Massachusetts, up to the maximum benefit amount.

Because of an increase in the average Massachusetts weekly wage, the maximum benefit amount will rise from $850.00 to $1,084. 31.

Contribution Rate from Employee Wages Decreases

The new rules also decrease the rate for employee contributions from their wages to fund PFML benefits. Employers should verify with their payroll companies that the updated amounts are being accurately deducted in 2022.

Starting January 1, the overall contribution rate decreases from .75% to .68% of eligible wages.  As in the past, employers with fewer than 25 covered individuals do not have to contribute to the employee’s medical leave share.

Although PFML benefit amounts are set by the state, employers are responsible for making sure their policies are updated to account for the changes when they take effect. Employers that provide benefits through private plans are required to meet or exceed PFML benefit amounts, so they also need to review their policies to ensure that benefits are adequate.

Updated Employee PFML Notice and Poster

Employees must provide their current Massachusetts employees and new hires with the updated PFML Notice as well as the updated Poster that outlines these changes.

Help with Updated HR Requirements

Keeping up with changes in state and federal requirements can be a challenge, particularly in times where a pandemic or other crisis prompts lawmakers to put emergency measures into place. Many companies must now comply with overlapping and unexpected HR requirements.

At Taylor HR Group, we provide customized HR assistance to suit the individual needs of your business. Contact us today to learn how we can ensure compliance so you can focus on running your company.