Massachusetts recently updated its paid family and medical leave contribution guidance after passing Chapter 101 of the Acts of 2026. The changes take effect Jan. 1, 2027.
The law shifts employer contributions from medical leave to family leave to mitigate the impact of IRS guidance on PFML benefit taxation. Employers with 25 or more covered individuals will continue to pay a combined contribution of 0.88% of eligible wages. Employers with fewer than 25 covered individuals will have an effective contribution rate of 0.46% and won’t pay the 0.42% employer share.
Beginning Jan. 1, payroll teams must apply the new allocation to wages earned on or after that date:
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