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
  • Create one or more classifications
  • Wild card character ‘%’ may be used in the Payroll Class # field
• 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