Massachusetts Paid Family and Medical Leave: Employer Requirements, Contribution Rates and Private Plans

Massachusetts Paid Family and Medical Leave (PFML) is a state program that pays partial wages and protects the jobs of workers on qualifying family or medical leave. In 2026, the total contribution is 0.88% of covered wages up to the $184,500 Social Security wage base, according to the Department of Family and Medical Leave (DFML) (opens in a new tab) (checked October 1, 2026). Employers with 25 or more covered individuals remit the full 0.88% and may deduct up to 40% of the medical-leave portion and up to 100% of the family-leave portion from employee pay. Employers with fewer than 25 generally skip the employer share but still remit the employee share. The 2026 maximum weekly benefit is $1,230.39.

Who is covered by Massachusetts PFML?

PFML generally covers Massachusetts employees, including full-time, part-time and seasonal workers, once they meet the earnings requirement, according to the DFML eligibility rules (opens in a new tab). An employee does not need to live in Massachusetts to be covered, as long as they work there.

Under M.G.L. c. 175M, § 1 (opens in a new tab), a covered individual can also be:

• A personal care attendant, consumer-directed care worker or family child-care provider who meets the earnings requirement
• A covered contract worker whose business must remit PFML contributions
• A former employee who met the earnings requirement and starts leave no more than 26 weeks after leaving the job
• A self-employed person who elects coverage

How are 1099 workers and self-employed people treated?

Independent contractors are not all treated the same. A worker paid on Form 1099-MISC can be a covered contract worker when the payments and services meet the statutory test and covered contract workers make up more than 50% of the business's workforce, according to DFML's guidance on who in your workforce the PFML law covers (opens in a new tab). Box 1 nonemployee compensation reported on Form 1099-NEC is excluded from PFML withholding and contributions. Covered contract workers also count toward the 25-person threshold, so the count matters for both questions.

Self-employed people can opt in for an initial period of at least three years. They pay the full contribution rate and generally cannot receive benefits until they have contributed for at least two of the last four completed calendar quarters, according to DFML's page on coverage for self-employed individuals (opens in a new tab).

Municipalities, districts, political subdivisions, housing authorities, regional school districts and regional planning commissions are generally excluded unless they adopt PFML through the statutory opt-in process. Charter schools are covered.

How much is the 2026 PFML contribution?

The 2026 contribution rate is 0.88% of eligible wages, split into 0.70% for medical leave and 0.18% for family leave. Contributions stop once a worker's covered wages reach $184,500 for the year, which matches the 2026 Social Security contribution and benefit base (opens in a new tab).

Sources: DFML contributions (opens in a new tab), DFML overview (opens in a new tab), SSA (opens in a new tab).

The rate held steady from 2025, while the wage cap and maximum benefit rose. Massachusetts legislation changes the employer contribution structure beginning January 1, 2027, and DFML sets the 2027 rate separately, according to the DFML employer contribution rates and calculator (opens in a new tab) page.

Does the employer or the employee pay PFML?

Both can, depending on the size of the business. Under M.G.L. c. 175M, § 6 (opens in a new tab), an employer with 25 or more covered individuals remits the full contribution to DFML and may recover part of it through payroll deductions:

• Up to 40% of the medical-leave contribution may come from employee wages.
• Up to 100% of the family-leave contribution may come from employee wages.
• The employer pays the rest.

An employer with fewer than 25 covered individuals generally does not pay the employer portion. It still must withhold and remit 100% of the family-leave contribution and 40% of the medical-leave contribution. Any employer can choose to pay some or all of the employee share.

The employer is responsible for the full required amount even when an employee's net pay is too small to cover the employee share, according to DFML (opens in a new tab).

What does PFML pay, and how long can leave last?

The weekly benefit comes from a two-part formula in M.G.L. c. 175M, § 3 (opens in a new tab). PFML replaces 80% of the part of your average weekly wage that is at or below 50% of the state average weekly wage, plus 50% of the part above that level, up to the 2026 maximum of $1,230.39 a week. Lower earners get a higher share of their pay replaced, and higher earners can reach the cap.

The leave limits in M.G.L. c. 175M, § 2 (opens in a new tab) are:

• Up to 20 weeks of medical leave for your own serious health condition
• Up to 12 weeks of family leave to bond with a child after birth, adoption or foster placement
• Up to 12 weeks of family leave to care for a family member with a serious health condition
• Up to 12 weeks of family leave for a qualifying military exigency
• Up to 26 weeks of family leave to care for a covered servicemember
• No more than 26 weeks of combined family and medical leave in one benefit year

No benefit is paid for the first seven calendar days of leave. That waiting period does not apply to family leave that immediately follows pregnancy or childbirth-related medical leave, when a health care provider's documentation supports it. Leave can be taken intermittently or on a reduced schedule when the statute and medical need allow.

Can an employer deny PFML leave?

An employer cannot deny a qualifying employee's leave because the business is small or the absence is hard to cover. Under the state plan, DFML decides eligibility; the employer reviews the application and can supply information. Employees of a business with an approved private plan apply through that plan instead.

The process runs on fixed steps:

• Employee notice. For foreseeable leave, the employee should give at least 30 days' notice of the start date, length and expected return, under M.G.L. c. 175M, § 4 (opens in a new tab). When the timing is outside the employee's control, notice is due as soon as practicable. If the employer never gave the required PFML notice, the employee's notice requirement is waived.
• Certification. The application must include the documentation and certification required for that type of leave.
• Employer review. The employer has 10 business days to respond to the application, according to DFML's FY2025 annual report (opens in a new tab).
• DFML decision. DFML notifies the employer within five business days after a claim is filed and generally decides eligibility within 14 days after receiving the claim and required information, according to the DFML employer FAQ (opens in a new tab).

Job protection is part of the program. Under M.G.L. c. 175M, § 2 (opens in a new tab), the employee generally returns to the same or an equivalent position with the same status, pay, benefits, seniority and length-of-service credit, and employment-related health insurance continues at the level and under the conditions that applied before leave. Under M.G.L. c. 175M, § 9 (opens in a new tab), retaliation, discrimination, discharge, suspension, discipline, threats and interference are prohibited, and a negative change in employment terms during leave or the statutory post-leave period is presumed to be retaliation.

How does PFML work with PTO, FMLA and workers' compensation?

PFML runs at the same time as Massachusetts parental leave and federal FMLA leave when one absence qualifies under both, according to M.G.L. c. 175M, § 2 (opens in a new tab).

An employer cannot force an employee to use up sick, vacation or personal time before or during PFML. Employees can generally use accrued PTO to top up PFML benefits to their own average weekly wage, subject to the employer's PTO rules, according to the DFML employee FAQ (opens in a new tab). An employer can coordinate PFML with its own disability or family-care leave so the employee receives the greater benefit, and qualifying employer leave paid at the same or a higher rate can count against the PFML allotment if the employer gives the required written notice.

Workers' compensation payments generally reduce PFML benefits for the same period, although a permanent partial disability from before the PFML claim may be treated differently, according to DFML's page on how other leave and benefits affect PFML (opens in a new tab). Unemployment benefits, permanent disability benefits and certain other government benefits can also reduce PFML.

How does a private plan exemption work?

An employer can meet its PFML obligations through a private plan that DFML approves, under M.G.L. c. 175M, § 11 (opens in a new tab). There are two kinds:

• A purchased (insured) plan, issued by an insurer whose policy forms are approved for Massachusetts, according to DFML's insurance carriers' guide (opens in a new tab).
• A self-insured plan, backed by a surety bond running to the Commonwealth, according to DFML's self-insured plan requirements (opens in a new tab).

Either way, the plan must match or beat the state program on family and medical leave reasons, maximum leave periods, the combined maximum, the wage-replacement rate, the maximum weekly benefit, intermittent and reduced-schedule rights, job protections, eligibility and appeal rights, according to DFML's benefit requirements for private plan exemptions (opens in a new tab). Employees cannot be charged more than they would pay under the state program.

Since July 1, 2026, exemption requests and renewals go through the DFML Employer Portal rather than MassTaxConnect. The exemption must be renewed annually or by the plan's expiration date, whichever comes first. An employee of a private-plan employer files the claim with the plan, and if the plan denies it, the employee must use the plan's appeal process before seeking DFML review where available.

A private plan does not remove the employer's other duties. Posting and notice rules still apply, and the job and retaliation protections are the same. If you are considering a private plan, an agent who writes Massachusetts PFML policies can show you the approved policy form and the employee cost.

What must employers file and post?

Employers, covered business entities and self-employed people who elect coverage file quarterly PFML returns through MassTaxConnect, according to the Department of Revenue's PFML filing steps (opens in a new tab). Returns and payments are due by the last day of the month after each quarter ends:

• First quarter: April 30
• Second quarter: July 31
• Third quarter: October 31
• Fourth quarter: January 31

PFML contributions are treated as taxes for collection, under 830 CMR 175M.8.1 (opens in a new tab). Late filing or late payment generally costs 1% of the unpaid amount per month or part of a month, up to 25%, plus interest, according to DOR's rules on the assessment of tax penalties (opens in a new tab). Failing to file or pay electronically when required can bring a penalty of up to $100 for each failure.

Every employer, including one with a private plan, also has notice duties under M.G.L. c. 175M, § 4 (opens in a new tab):

• Display the DFML-approved workplace poster (opens in a new tab) where workers can see it, in English and in each primary language spoken by at least five employees or covered self-employed individuals when DFML provides that translation.
• Give each new employee written PFML information within 30 days of the start date, in the employee's primary language.
• Include benefit availability, reinstatement and health-insurance rights, contribution obligations, the employer's name and identification number, claim-filing instructions and DFML contact information.
• Get a written acknowledgment of receipt or a signed refusal to acknowledge.

Covered business entities give similar information to covered self-employed individuals when the contract is made. The civil penalty for not complying is $50 per employee or covered self-employed individual for a first violation and $300 per person for later violations.

How are PFML benefits taxed?

For 2026, 100% of family-leave benefits are taxable for federal and Massachusetts income tax, according to DFML's tax information for employers (opens in a new tab). For employers with 25 or more employees, 60% of medical-leave benefits are taxable, reflecting the employer's contribution. Medical-leave benefits for employees of employers with fewer than 25 employees are not taxable under DFML's 2026 guidance. DFML reports taxable benefits to employees on Form 1099-G, and employees can choose federal and Massachusetts withholding on those benefits. There are no new employer FICA or FUTA withholding and reporting changes for PFML benefits in 2026.

At the federal level, IRS Revenue Ruling 2025-4 (opens in a new tab) treats mandatory employee contributions as state income tax payments, deductible only if you itemize and only within the state and local tax deduction limit. IRS Notice 2026-6 (opens in a new tab) extends the transition period for certain medical-leave tax requirements through 2026. Massachusetts generally follows federal gross-income treatment, according to the DFML tax memo (opens in a new tab).

Questions to ask before you set up payroll or take leave

If you run a business, ask DFML or your payroll provider:

• Which workers count as covered individuals, and are any 1099-MISC workers covered contract workers?
• Does the business fall under the fewer-than-25 threshold?
• Which portions can be deducted from employee wages?
• Which notices and translations must go out?
• If you have a private plan, is the exemption active, and does it require a surety bond?

If you are an employee, ask your employer:

• Is the business in the state program or covered by an approved private plan?
• Where do I file, and what notice and certification are required?
• How will health insurance, PTO, short-term disability and workers' compensation interact with my leave?
• What appeal process applies if the claim is denied?

For a private plan, ask the agent whether the policy form is approved for Massachusetts PFML and what employees will pay. Riskado's Massachusetts agency directory lists agencies by city and by category, and our guide to what insurance a small business needs covers the rest of a business insurance plan.

Frequently asked questions

Can a former employee use PFML?

Yes, if they met the earnings requirement and start leave no more than 26 weeks after leaving the job, under M.G.L. c. 175M, § 1 (opens in a new tab).

What happens if the employer never gave the PFML notice?

The employee's 30-day notice requirement is waived, under M.G.L. c. 175M, § 4 (opens in a new tab). The employer can also face a civil penalty of $50 per covered person for a first violation.

Can a small employer choose a private plan?

Any employer can apply to DFML for an exemption through an approved insured or self-insured plan, under M.G.L. c. 175M, § 11 (opens in a new tab). The plan must provide benefits and protections at least equal to the state program and cannot charge employees more.

Where to start

For a business, the first step is an accurate head count of covered individuals, including any 1099-MISC contract workers, because that number decides who pays what. From there, register in MassTaxConnect, set the payroll deductions, put up the poster and send new-hire notices within 30 days. For an employee planning leave, find out whether your employer uses the state program or a private plan, give notice as early as you can, and keep copies of every document you file.