The Massachusetts Department of Family and Medical Leave (the “Department”) recently announced two important updates regarding Paid Family and Medical Leave (“PFML”) benefits and contributions in 2026. Both updates require employers to take action to ensure compliance.
First, the Department issued much-anticipated guidance regarding the proper tax treatment of PFML benefits and contributions.
Second, the Department announced the 2026 PFML contribution rates and maximum benefit amount. Updated workplace posters, employee notices, and rate sheets are now available on the Department’s website.
Tax Treatment of PFML Benefits and Contributions
The Department issued a memorandum explaining the proper tax treatment of PFML benefits paid by the Department. The memorandum addresses the IRS ruling regarding the proper income and employment tax treatment of benefits provided by state-run paid family and medical leave programs. Notably, the IRS ruling and the Department’s memorandum do not address the tax treatment of private or self-insured PFML plans.
Family leave PFML benefit payments are considered gross income subject to income taxes. However, they are not considered wages and are not subject to employment taxes. Family leave benefit payments will be reported on a Form 1099-G issued by the Department. Accordingly, family leave PFML benefit payments will not result in additional tax consequences or reporting obligations for employers.
However, medical leave PFML benefit payments...
The lawyer representing former Michigan football coach Sherrone Moore alleged in court filings that accusations against Moore were part of a “litigation strategy designed to villainize Mr. Moore” ...