Maryland Paid Family and Medical Leave (FAMLI): Program Dates, Contributions, Benefits and Private Plans

Maryland's Family and Medical Leave Insurance program, known as FAMLI, starts collecting payroll contributions on January 1, 2027, and begins paying benefits on January 1, 2028, according to the Maryland FAMLI program page (opens in a new tab). The 2027 State Plan rate is 0.9% of wages up to the Social Security wage cap, and employers may withhold up to half of it from employees, according to FAMLI's contributions page (opens in a new tab). Eligible workers can receive up to 12 weeks of paid, job-protected leave a year, at up to $1,000 a week. Every employer with at least one Maryland employee must register and file quarterly reports, even if it chooses an approved private plan.

What is Maryland FAMLI?

FAMLI is a state-run paid leave insurance program for people who work in Maryland. Employers and employees fund it through payroll contributions, and eligible workers draw benefits when they need time away for a qualifying medical, family, or military-related reason. Coverage comes either through the State Plan, which the Maryland Department of Labor runs, or through an approved private plan that matches or beats the State Plan, according to the FAMLI program page (opens in a new tab).

The leave is job-protected. During qualifying FAMLI leave, your employer must hold your position, continue your health benefits, and return you to the same or an equivalent job, and it cannot retaliate against you for using the program, according to FAMLI's employer page (opens in a new tab).

When do FAMLI contributions and benefits begin?

The current dates are:

• Contributions: January 1, 2027.
• Benefits: January 1, 2028, the date the Department of Labor has announced on its public program pages (opens in a new tab).

That leaves a full year in which payroll deductions are taken before anyone can file a claim, which matters for both payroll planning and personal planning.

These dates replaced earlier ones. The original law, Chapter 48 of 2022, set contributions to begin October 1, 2023. A 2023 amendment moved contributions to October 1, 2024 and benefits to January 1, 2026. Chapter 363 of 2025 then set contributions for January 1, 2027 and required claims to begin no later than January 3, 2028, as announced by the Secretary of Labor, according to the Department of Legislative Services analysis (opens in a new tab). If you see an older 2023 Department of Labor announcement (opens in a new tab) with October 2024 or January 2026 dates, those are out of date.

Who is covered and who qualifies?

Any employer with at least one employee working in Maryland must register with FAMLI, and employees in positions localized in Maryland take part in the contribution system. Employees cannot opt out because they don't expect to use the benefit, according to the FAMLI program page (opens in a new tab).

To qualify for benefits, you generally need at least 680 hours worked in a Maryland-localized position during the four calendar quarters before your claim or leave begins, whichever comes first. Part-time workers in particular should keep track of their hours against that threshold.

A few groups are treated differently:

• Federal employees working in Maryland are excluded and do not contribute.
• Self-employed Maryland residents will be able to opt into a separate optional program, with rules and processes expected in 2028, according to the FAMLI FAQ (opens in a new tab).
• Independent contractors do not count toward an employer's size.

How much do employers and employees contribute?

For wages paid in 2027, the State Plan rate is 0.9% of wages up to the Social Security wage cap, according to FAMLI's contributions page (opens in a new tab). The split works like this:

On $1,000 of weekly wages, the full 0.9% comes to $9, with up to $4.50 withheld from the employee. The Social Security wage cap changes each year, so check the cap that applies to the contribution year you are calculating.

Employers with fewer than 15 total employees are responsible only for the employee half, and they may withhold it from pay. They still must register, report wages and hours, and follow the rest of the program rules. Employer size is counted across everyone under the same federal EIN, inside and outside Maryland. During 2027 the Department counts size each quarter; beginning in 2028 it uses the average of the previous four quarters.

The Department will announce future State Plan rates each year starting in November 2027.

How much does FAMLI pay and for how long?

FAMLI pays up to 12 weeks of leave within a 12-month benefit year, with a weekly maximum of $1,000, according to FAMLI's employee page (opens in a new tab). Twelve weeks and $1,000 are ceilings. Your actual benefit depends on your wages and your reason for leave.

The calculation starts with your highest-earning quarter from the prior year. That amount is divided by 13 to get your average weekly wage, which is then compared with Maryland's State Average Weekly Wage:

• If your average weekly wage is 65% or less of the state average, your benefit is 90% of your average weekly wage.
• If it is above 65% of the state average, your benefit is 90% of that 65% threshold, plus 50% of your wages above the threshold.
• Either way, the weekly benefit cannot exceed $1,000.

The formula replaces a larger share of income for lower earners. A worker with a highest quarter of $13,000, for example, has an average weekly wage of $1,000, and the result then depends on where $1,000 falls against the State Average Weekly Wage for that year.

You can take leave intermittently, but under the State Plan each block of intermittent leave must be at least four hours, under Labor and Employment Article § 8.3-701 (opens in a new tab). In certain circumstances, up to 12 additional weeks may be available, for a possible total of 24 weeks, according to the legislative analysis (opens in a new tab). The exact combination depends on the qualifying events, so confirm your situation with the FAMLI Division.

What reasons qualify for FAMLI leave?

Under § 8.3-701 (opens in a new tab) and the FAMLI program page (opens in a new tab), qualifying reasons include:

• Caring for a newborn during the first year after birth.
• Caring for or bonding with a child placed through adoption, foster care, or kinship care.
• Your own serious health condition.
• Caring for a family member with a serious health condition.
• Caring for a service member whose serious health condition was caused or worsened by military service.
• Qualifying needs related to a family member's deployment in the uniformed services.

FAMLI covers far more than parental leave: your own serious illness, a family member's, and military family needs all count.

Notice rules for employees and employers

When leave is foreseeable, such as a planned birth or surgery, your employer may require at least 30 days' written notice. When it isn't foreseeable, you must give notice as soon as practicable and follow your employer's normal leave procedures, as long as those procedures don't interfere with your FAMLI rights, according to the legislative analysis (opens in a new tab).

Employers have notice duties too. They must notify employees one pay period before deductions begin, and starting in July 2027 they must provide FAMLI notices at hiring, every year, when an employee requests leave, and when the employer learns of a qualifying event, according to FAMLI's employer page (opens in a new tab).

State Plan or private plan?

Employers can stay on the State Plan or use an approved private plan, as long as the private plan provides the same or better benefits and service, according to FAMLI's plan page (opens in a new tab). Private plans come in two kinds:

• Commercial private plans, run by an insurer or plan administrator.
• Self-insured plans, run by the employer or its administrator. The employer must apply, provide a FAMLI-compliant plan, show it can pay claims, and keep a separate account used only for FAMLI contributions and benefits.

Several rules apply to both. All employees under one EIN must be on the same plan. Employers with 50 or more employees may apply to self-insure, and certain smaller employers may apply if they had a compliant plan in place by July 31, 2026. Private plans may charge employers more than the State Plan rate but cannot withhold more from employees than the State Plan employee share. Employers are generally expected to stay in a private plan for at least a year, and switching plans cannot leave a gap in coverage. Private-plan employers still file quarterly wage and hour reports and claims data.

The 2027 deadlines matter now. An employer that wants to skip State Plan contributions during the 2027 start-up period must submit a Declaration of Intent between September 1 and November 15, 2026. Accepted employers hold their 2027 contributions in escrow, and the private-plan application is due October 1, 2027. If a commercial plan is approved, the employer returns the employee contributions; a self-insured employer may move the escrowed money into its separate FAMLI account.

Annual private-plan application fees run from $100 to $1,000 for commercial plans, depending on employee count, and $1,000 for self-insured plans.

What employers need to do before 2027

Employers with at least one Maryland employee should work through these steps, according to FAMLI's employer page (opens in a new tab) and its quarterly reporting page (opens in a new tab):

1. Register in the FAMLI employer portal (opens in a new tab) under your federal EIN. An authorized officer must complete the first registration; after that, you can authorize a third-party administrator through a power of attorney.
2. Set up payroll to take contributions starting January 1, 2027.
3. Give employees notice one pay period before deductions start.
4. Prepare quarterly wage and hour reports, which include employee names, SSNs or ITINs, gross wages, FAMLI wages, hours, withholding amounts, FICA status, and job information.
5. Remit State Plan contributions electronically, unless you are in an approved private plan.

Reports and payments are due on the same days each year: April 30, July 31, October 31, and January 31. The first payment, covering the first quarter of 2027, is due April 30, 2027.

Late or unpaid contributions carry real costs. Under Labor and Employment Article § 8.3-903 (opens in a new tab), the Secretary of Labor can assess the contributions plus interest, add an assessment of up to two times the contributions withheld, and order an audit for the following fiscal year.

How FAMLI works with FMLA and other leave

FAMLI and the federal Family and Medical Leave Act are separate programs. FAMLI pays benefits; FMLA generally provides unpaid, job-protected leave. When the same event qualifies under both, the two generally run at the same time, and an event that qualifies only under FAMLI does not use up your FMLA time, according to the FAMLI FAQ (opens in a new tab).

Employees generally are not required to use up employer-provided leave that isn't legally required before receiving FAMLI benefits, although you and your employer may agree to use other paid leave to fill in wages during FAMLI leave. Sick and safe leave under the Maryland Healthy Working Families Act serves a different purpose, covering ordinary sick and safe-leave needs. FAMLI benefits cannot be collected at the same time as workers' compensation or unemployment insurance benefits, according to FAMLI's leave management page (opens in a new tab).

How FAMLI benefits are taxed

Federal tax treatment depends on the kind of leave and who paid the contributions, under IRS Revenue Ruling 2025-4 (opens in a new tab):

• Family leave benefits are included in federal gross income but generally are not wages for employment tax purposes. The state may report them on Form 1099.
• Medical leave benefits tied to employee contributions are generally excluded from gross income.
• Medical leave benefits tied to employer contributions may be included in income and treated as wages.
• Mandatory employee contributions may be deductible as state income tax if you itemize, within federal SALT limits.

The IRS extended a transition period for certain medical leave benefit tax treatment in Notice 2026-6 (opens in a new tab). For Maryland reporting and deductions, confirm the treatment with the Comptroller of Maryland or a tax professional before you file.

Questions to ask before you decide

If you are an employer, ask your payroll provider and the FAMLI Division: Are we registered under the correct EIN? Which positions are localized in Maryland? Do we qualify for the fewer-than-15-employee rule? Who will prepare quarterly reports and employee notices?

If you are an employee, ask HR: Is my job localized in Maryland? Have I worked 680 qualifying hours? Which plan covers my job, and who handles claims and appeals? How will FAMLI coordinate with FMLA and my employer's leave?

If you are evaluating a commercial private plan, ask a licensed Maryland insurance representative:

• Has the Maryland FAMLI Division approved this plan?
• Does it meet or exceed State Plan benefits and service?
• Who administers claims, and what are the appeal procedures?
• What are the eligibility, waiting, and notice rules?
• How much can be withheld from employees?
• What happens if the plan is terminated or not renewed?
• What reports must we still file with FAMLI?

Riskado's directory lists insurance agencies across the US, including Maryland agencies by city and category, if you want to talk through a private plan with a local agent.

Frequently asked questions

How do I reach the FAMLI Division?

Call 410-525-4010 or email paid.leave@maryland.gov, according to the FAMLI program page (opens in a new tab). Employers handle registration, reports, payments, and private-plan filings through the employer portal (opens in a new tab).

Can my employer put some employees on a private plan and others on the State Plan?

No. All employees under one federal EIN must be on the same FAMLI plan, according to FAMLI's plan page (opens in a new tab).

Can a private plan take more out of my paycheck than the State Plan?

No. A private plan can charge the employer more than the State Plan rate, but it cannot withhold more from employees than the State Plan employee share, according to FAMLI's contributions page (opens in a new tab).

When will employees file claims?

Employees will file claims through the FAMLI system once benefits become available on January 1, 2028, according to the FAMLI FAQ (opens in a new tab).

Where to start

Employers: register in the portal, set up payroll for January 2027, and decide before November 15, 2026 whether to file a Declaration of Intent for a private plan. Employees: check that your job is localized in Maryland, keep an eye on your hours, and know that benefits begin January 1, 2028.