How do we set up Maryland Paid Family Leave Insurance (MD-FML)?

Penta for Windows

Payroll > Setup > Taxes > Payroll Tax Maintenance

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

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

  Open

  

   

• Update the Rates tab

  • State/Province will be MD - NOTE: MD state code must be used in the Employee Resident/Work UC ST, Job or Work Order State Unemployment (UC) tax type field(s) for this insurance to calculate

  • Review the Maryland Paid Family Leave Insurance FAQ for information: MD-FML FAQs

  • As of January 1, 2027, the Family and Medical Leave Tax is .9% - Review the Maryland Family and Medical Leave Insurance site for the current rate

    • • As a company, you can choose what portion of the rate is paid by the employee and what is paid by the employer, up to 50% paid by the employee

      • The example below has 50% paid by the employee and 50% paid by the employer

      • Use the latest Social Security wage limit subject to Social Security tax as the Annual Earnings Limit

        • For 2026, the Social Security wage base — the maximum amount of wages subject to the 6.2% Social Security tax — is $184,500

      • Insert a new record for wage limit or employee and/or employer rate updates

Open

• Employee Classifications tab - Not applicable

• Union Exceptions - Not applicable

• Update the Accrual and Expense Accounts tab for each Legal Entity

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

  • Direct Burden Rules

  • Master Deductions

  • Master Reimbursements

  • Other Compensation Information

  • Payroll Classes

  • Employee Payroll Information