/
Setting up Massachusetts Paid Family Leave (MA-FML)

Setting up Massachusetts Paid Family Leave (MA-FML)

Issue/Symptom/Question

How do I set up Massachusetts Paid Family Leave (MA-FML)?

Applies To

PENTA for Windows

Payroll > Setup > Taxes > Payroll Tax Maintenance

Resolution/Fix/Answer

Navigate to the Payroll Tax Maintenance window and query MA-FML

  • Review the General tab according to the tax regulation - see sample setup below:

  • Update the Rates tab

    • State/Province will be MA

    • Classification is pulled in from the Employee Classifications setup - see below

    • The total rate is .75% of eligible employee earnings, this is represented as Rate: 0.75000 below. Annual Earnings Limit = $132,900.00

      • Family Leave Portion of Premium: should be .13% of the .75%, this is represented as 13/75 below

        • As a company, you can choose what portion of the above is paid by the employee and which is paid by the employer

        • The example below has 100% paid by the employee

      • Medical Leave Portion is .62% of the .75%, this is represented by 62/75 below

        • As a company, you can choose what portion of the above is paid by the employee and what is paid by the employee

        • The example below has 40% paid by employee and 60% paid by employer

  • Employee Classifications tab:

PENTA requires at least one employee classification for tax type MA-FML. Your organization might require more. Examples of different employee classifications are: 

  • Premium contribution structure the same for all employees: 

    • Set up one employee classification, entering the wildcard ‘%’ in the Payroll Class # field. Assign this employee classification to a rate record set up with appropriate values. 

  • Premium contribution structure standard for some employees but different for employees whose premiums will be paid 100% by the employer:   

    • Set up one employee classification for payroll classes and/or individual employees subject to the standard rate proportions. Assign this employee classification to a rate record set up with the standard premium. 

  • Set up another employee classification for the payroll classes and/or individual employees whose premiums are 100% paid by the employer. Assign this employee classification to a rate record set up with 0% for employee withholding.     

  • Optional - Add Union Exemptions 

  • Update the Accrual and Expense Accounts tab

  • Optionally, in the following windows set up taxability rules for Tax Type MA-FML:

    • Direct Burden Rules

    • Master Deductions

    • Master Reimbursements

    • Other Compensation Information

    • Payroll Classes

    • Employee Payroll Information