Massachusetts Paid Family Medical Leave

Question

Hi Sage Family, 
 
 Just curious how other PR/HR departments are handling the MA Paid Family Medical Leave. Did you get a private insurance carrier to manage and pay claims or are you going through the state? 
 
 We have a private carrier and they want us to setup the Employee and Employer contributions as a Post Tax deduction, but SAGE and the state are calling it a tax and you can't setup a tax to be taxed. 
 We have setup the contributions as a tax and sumbitted the contributions to the carrier who are paying out benefits and withholding Employee FICA tax, so we now have to withhold employer FICA by way of, I THINK, entering the benefit as a 3rd party pay. 
 
 What's everyone doing out there???

Denise Paulus · Answer

Have you reached out to your tax advisor about this? In Sage 300 CRE Payroll we provided the MAPFL and MAPFL_E taxes with the tax updates based on the requiements outlined by the state of MA. These taxes would still need to be added to the MA Tax group in Payroll in order to calculate automatically. My understanding is that the tax amounts are remitted to a state agency. I am not a tax expert nor am I familiar with how this works in MA but here a a few resources you may want to check: Our KB article 96650 Massachusetts Paid Family & Medical Leave (96650) and the Massachusettes web site: https://www.mass.gov/paid-family-and-medical-leave-information-for-massachusetts-employers 
 It is a tax if you are referring to Massachusetts Paid Family and Medical Leave

Sage Construction & Real Estate

Massachusetts Paid Family Medical Leave

Top Replies

COMMUNITY

COMPANY

PARTNERS

SUPPORT & TRAINING