Massachusetts Paid Family and Medical Leave

The Massachusetts Paid Family and Medical Leave Insurance (FMLI) program provides employees working in Massachusetts paid time off to care for themselves or a family member.

These taxes consist of these components.

• Family Leave Insurance Employee

• Medical Leave Insurance Employee

• Medical Leave Insurance Employer

Before you implement Massachusetts FMLI, there are some areas you need to consider.

• What are the employee eligibility criteria

• How to override the legislative rates and percentages

• How to opt out your organization

• How to exclude individual employees

• How to cost the tax

• What wage basis rules they follow

What are the employee eligibility criteria

To be eligible for the Massachusetts FMLI tax, an employee must have.

1. Valid tax card with a tax reporting unit (TRU) association

2. Massachusetts identified as one of these.

   • Family leave insurance (FLI) state on the person's Tax Jurisdictions card

   • State unemployment insurance (SUI) state on their Tax Withholding card (if FLI state is undefined)

How to override the legislative rates and percentages

To override the legislative tax rates and percentage distribution between employee and employer components:

1. To override at the payroll statutory unit (PSU) level, start the Legal Entity Calculation Cards task from your implementation project.

   To override at the TRU level, start the Legal Reporting Unit Calculation Cards task.

   Settings at the TRU level override those at the PSU level.

2. Open the calculation card for editing.

3. In Component Groups, select the Massachusetts state regional node.

   Create it if it doesn't exist.

4. In Calculation Components, select State FLI.

   Create it if it doesn't exist.

5. Click Enterable Calculation Values on the Calculation Card.

6. Click Create.

7. To change the total tax rate, search for and select FLI combined rate.

   To override the distribution between the employee and employer rates, use these calculation value pairs.

   • FLI employee percentage and FLI employer percentage

   • MLI employee percentage and MLI employer percentage

   Enter them as percentages. For example, enter 50% as 50. The sum of these percentages must equal 100%.

   To override the annual wage limit, use Family leave insurance wage limit.

8. Save your work.

How to opt out your organization

To opt out an organization:

1. To opt out at the PSU level, start the Legal Entity Calculation Cards task from your implementation project.

   To opt out at the TRU level, start the Legal Reporting Unit Calculation Cards task.

2. Open the calculation card for editing.

3. In Component Groups, choose the Massachusetts state regional node.

4. In Calculation Components, choose State FLI.

5. Select Enterable Calculation Values on the Calculation Card.

6. Click Create.

7. Search for and select FLI employee tax exemption.

8. In Value, select the appropriate exemption status.

9. Save your work.

How to exclude individual employees

To exclude an individual employee from these taxes:

1. Open the person's tax card for editing.

2. Open the Massachusetts component for editing.

3. In Withholding Exemption, select the appropriate exemption for Family Leave.

4. Save your work.

How to cost the tax

To process FMLI taxes, cost these predefined elements using the FLI Tax Calculated input value.

• Family Leave Insurance Employee Tax

• Family Leave Insurance Employee Tax Not Taken

• Medical Leave Insurance Employee

• Medical Leave Insurance Employee Tax Not Taken

• Medical Leave Insurance Employer

For further info, see Payroll Costing of Elements for the US in the Help Center.

What wage basis rules it follows

When configuring the wage basis rules for Massachusetts FMLI, find them under State FLI in the Component Group Rules task.