Massachusetts PFML contribution changes take effect on : employers must pay 60% of the family leave contribution, employers may withhold up to 100% of the medical leave contribution, and the exemption for employers with fewer than 25 covered workers moves from medical leave to family leave. The changes to the state’s Paid Family and Medical Leave (PFML) program come from a supplemental budget act signed by Governor Maura Healey on June 12, 2026, and are intended to address recent IRS guidance on the tax treatment of Massachusetts PFML benefits.
The Timeline
The Contribution Split Changes
These percentages govern how a contribution is divided, not what it costs. The contribution rates the percentages apply to will be announced by October 1, 2026.
The Small-Employer Exemption Moves
The exemption for employers with fewer than 25 covered workers shifts. Beginning in 2027, it applies to the family leave contribution rather than the medical leave contribution.
For professional employer organizations and staffing agencies, the 25-employee threshold is not measured across the whole book of business. Each employer’s workforce is counted separately to determine whether the threshold is met, and individual returns must be filed for each client employer.
Reporting and Notice Requirements
Employers must continue to report contributions and wages for employees and covered 1099-MISC workers quarterly, including the percentage of family and medical leave contributions withheld from each employee.
Written notice of the PFML program’s benefits and contribution rates must be provided to employees within 30 days of hiring.
What to Watch For
The Massachusetts PFML contribution changes are settled, but the numbers behind them are not. The 2027 contribution rates are due by October 1, 2026, and only once they are published can the 60/40 family leave split and the medical leave withholding be translated into actual dollars. That announcement is the point at which payroll settings, withholding percentages, and new-hire notices can be updated for the 2027 structure.
As with any compliance change, consult your attorney, CPA, or industry professional for guidance on how the Massachusetts PFML contribution changes apply to your business.
Where to Find More Information
- Massachusetts Department of Family and Medical Leave
- Paid Family and Medical Leave employer contribution rates and calculator
Department of Family and Medical Leave: (833) 344-7365
Questions about contributions: (617) 466-3950
Hours of operation are Monday through Friday, 8:00 a.m. to 4:30 p.m.
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Frequently Asked Questions About Massachusetts PFML 2027
Below are answers to some of the most common questions about FAMLI for Staffing Agencies.
When Do the Massachusetts PFML Contribution Changes Take Effect?
January 1, 2027. The changes were signed into law on June 12, 2026, as part of a supplemental budget act.
Who Pays the Massachusetts PFML Family Leave Contribution in 2027?
Beginning January 1, 2027, employers are required to pay 60% of the family leave contribution and employees may be charged up to 40%. This reverses the previous contribution structure for family leave.
Can Employers Withhold 100% of the PFML Medical Leave Contribution?
Yes. Beginning January 1, 2027, Massachusetts employers may withhold up to 100% of the medical leave contribution from an employee’s pay. The figure is a maximum, not a required withholding amount.
When Will Massachusetts Announce the 2027 PFML Contribution Rates?
The 2027 contribution rates will be announced by October 1, 2026. The 60/40 split and the 100% withholding figure govern how each contribution is divided; the rates determine what it costs.
Are Employers With Fewer Than 25 Workers Still Exempt From Massachusetts PFML?
Yes, but the exemption moves. Beginning in 2027, the exemption for employers with fewer than 25 covered workers applies to the family leave contribution rather than the medical leave contribution.
How Does the PFML 25-Employee Threshold Work for Staffing Agencies and PEOs?
Each client employer’s workforce is counted separately rather than combined across the book of business. Professional employer organizations and staffing agencies must file individual returns for each client employer to determine whether the 25-employee threshold is met.
What PFML Reporting Do Massachusetts Employers File Each Quarter?
Massachusetts employers must report PFML contributions and wages quarterly for both employees and covered 1099-MISC workers. Each filing must include the percentage of family and medical leave contributions withheld from each employee.
How Soon Must New Hires Receive Written PFML Notice?
Massachusetts employers must provide written notice within 30 days of hiring. The notice must cover the PFML program’s benefits and contribution rates.
Why Are the Massachusetts PFML Contribution Changes Happening?
The Massachusetts PFML contribution changes were enacted in a supplemental budget act signed by Governor Maura Healey on June 12, 2026. They are intended to address recent IRS guidance on the tax treatment of Massachusetts PFML benefits.
