If you live in Massachusetts, you might be eligible for paid family leave. Whether you are an employee or a self-employed individual, you can receive a tax-free benefit if you take time off for a serious illness or injury. However, you must qualify, and you must follow certain rules. Here’s a look at some of the details you need to know.
Waiting period
The waiting period for paid family leave is usually seven days. However, depending on the state in which you work, the duration may vary.
A lot of states have programs that provide this type of leave. It’s important to review the laws and policies that apply to your company. You can use this time to attend a doctor’s appointment or to look after a sick family member.
Some states offer paid family leave, which provides wage replacement benefits for up to eight weeks. Benefits are generally paid at 67% of the employee’s average weekly wage. In California, the minimum amount is 60 percent of wages, with a maximum of 84 percent. Depending on the number of weeks taken for Family Leave, the benefit may be reduced.
If you take the leave, you should give your employer at least 30 days’ notice before starting the application process. This will help ensure that you receive your benefits without delay. When you are ready to begin the application process, you can fill out an online form with the California Employment Development Department. Once your application is submitted, you will get a form receipt number and instructions.
You can check the status of your payment every week. The benefit amount is about 60 to 70 percent of your wages earned five to 18 months before the claim date.
Many states also allow employees to receive paid leave through PTO. Using PTO can increase the benefit.
While there are a few limitations on the paid family leave program, it does offer job protection to eligible workers. As long as you don’t disrupt the business, you can continue to do your job while you take the time off.
There are several state and federal programs that provide this type of leave. Most require a medical certification and offer maximum benefits. Taking the time off can be an emotional and logistical challenge, so keep in mind that you don’t have to go to work while you’re on leave.
As always, if you have any questions, be sure to contact your local office of the Office of Paid Family Leave.
Coverage for “family members” with a serious health condition
The Massachusetts Paid Family Medical Leave Act (PFML) is a state-run program. It allows qualifying employees to earn up to 12 weeks of job-protected paid time off to care for a family member with a serious health condition. This type of leave may also be used to help a military member with a qualifying exigency due to a family member on covered active duty overseas.
There are a number of ways to qualify. An employer’s written policy will determine which family members are covered. Additionally, the state of Massachusetts has created a calculator to help you figure out what your premiums will be. You can also ask your HR department if they know any qualified FMLA specialists who can answer your questions.
To be eligible for PFML, an employee must first provide their employer with 30 days advance notice. In addition to providing this notice, they will also need to fill out the state’s PFML form. A qualified FMLA broker can make sure your business is in compliance with the Massachusetts PFML.
While no one is going to expect you to be able to work while taking a break to take care of your sick child, the MA PFML makes it possible. After a year of being off, you can resume work. Your employer can decide to pay you the equivalent of your average weekly wage. However, the cost of your coverage will be divided between you and your employer.
Other notable PFML requirements include that you must be employed by an eligible employer. This includes any Massachusetts employer with at least 25 employees. If you are not employed by a Massachusetts company, you can look into a private plan. These plans may offer higher benefits and quicker underwriting. Alternatively, you can opt for a more traditional employer-sponsored health insurance plan.
Another tidbit you should know is that the state of Massachusetts is the first in the country to provide an official paid family medical leave act. You can sign up online or contact a local licensed broker. They will be able to show you the best plan for your specific situation.
Tax withholding on PFML benefits
When an employer pays benefits to an employee under a paid family leave program, these benefits are taxable. They are also subject to Social Security and Medicare taxes. Depending on the underlying state law, the amount may be taxed at a state or federal level.
Taxes for paid family leave benefits can vary from state to state. In New York, employees can request that their employers withhold taxes on the amount they receive. The New York Department of Taxation and Finance (NYSDTF) provides a table that details the amount of taxes that must be withheld.
Paid Medical Leave benefits are also taxable. They can be reported on Form 1099-MISC, which is issued by private insurers. Unlike paid family leave, medical leave benefits are not treated as disability benefits. However, they are taxable non-wage income and may be subject to both Federal and State unemployment taxes. If the coverage is part of a mixed funding plan, the taxpayer should seek the advice of a tax professional.
If an employer is required to make a contribution to a PFML program, the amount of the contribution will be withheld from the employee’s wages. This amount is generally deductible for the employer but may be includible in the employee’s gross income. Generally, the amount deducted depends on the extent to which IRC Section 106 applies.
For state-funded PFML programs, the IRS is unable to provide guidance on how to include the contributions in the individual’s income. The PFML program is subject to state taxes, but the amount withheld will be based on a formula that is imposed by the State.
Regardless of the method employed to tax a benefit, it is important to remember that paid family leave benefits are not subject to FUTA or SUTA. Employees may opt to withhold voluntary taxes from the amount they receive. Alternatively, they can file an amended return and ask the IRS to withhold some of their wages.
Taxation of disability benefits is complex. Mixed funding plans are difficult to tax, but the IRS does not publish regulations on COBRA continuation health coverage.
Self-employed employees
Massachusetts Paid Family Medical Leave (PFML) is a state program that allows workers to take up to 26 weeks of paid leave for qualifying medical reasons. The premiums will be deducted from the employee’s payroll. This benefit is available to most employees. It may also run concurrently with other state and federal leave laws. In order to qualify, an individual must earn enough wages during the previous 12 months, and they must have a qualifying medical reason.
In order to be eligible for a PFML plan, an employee or self-employed individual must first notify his or her insurance carrier of their intention to opt in. They must then submit a voluntary coverage form to the Workers’ Compensation Board. Self-employed individuals are not subject to a waiting period for obtaining PFL benefits, and they are eligible for 26 weeks of PFL coverage after they have opted in. If they are planning to take leave for a family reason, they should start researching options as soon as possible.
In addition to the financial eligibility test, MAPFL employees must meet certain language requirements. These requirements are based on the population of the state. Moreover, a notice of the program must be distributed in each primary language of five or more employees. A list of insurers that offer a PFML policy can be found on the Department of Financial Services’ website.
To be eligible for a MAPFL benefit, an employee must have earned $4,700 during the last four calendar quarters. They must have been employed for at least 20 weeks in the prior year. Some independent contractors are also entitled to a 26-week PFML benefit. Upon completion of the 26-week PFML benefit, employees are entitled to apply for unemployment compensation.
Massachusetts Paid Family Medical Leave begins collecting premiums on October 1, 2019. You can learn more about the PFML program by visiting the Department of Financial Services’ website. There are also phone numbers and an email address to contact if you have questions or concerns. After you have completed the PFML application, you can expect a response within two weeks.
