Massachusetts Delays Start of Family and Medical Leave Law

After first saying it would not delay the new tax that will fund the Massachusetts Family and Medical Leave Law, the Massachusetts legislature reversed course late last week. Both the House and Senate passed and Gov. Charlie Baker signed a bill that delays the tax for 90 days. Employers now don’t have to make deductions from employee pay or set aside their own contributions until October 1. The law as previously set to start July 1, 2019.

 The change means employers have more time to prepare for the deductions and notify their employees and independent contractors of what’s to come. Initial payments and reports of worker data will now be due in January 2020. In connection with the delay, the initial tax rate will increase from .63% of worker earnings to .75%. Qualified workers will still be eligible for benefits beginning in 2021.