Companies that offer workers a family and medical leave plan that is at least as generous as the benefits that will be provided by the new state program can now apply for an exemption from the payroll tax contributions the state plans to begin collecting July 1.

The fledgling Department of Family and Medical Leave (DFML) plans to begin collecting a 0.63 percent payroll tax from employers July 1 to fund the estimated $800 million paid family and medical leave program launched so workers can more easily take care of themselves and their families without facing financial crises.

Applications for exemption from the initial wave of collections became available Monday and must be submitted through the Massachusetts Department of Revenue’s MassTaxConnect online portal.

To be eligible for the exemption, which would have to be renewed annually, a business “must meet or exceed benefits provided by the commonwealth’s new Paid Family and Medical Leave program,” the DFML said in a statement.

The benefits program was created as part of the so-called grand bargain, an expansive law which the legislature passed and Gov. Charlie Baker signed in June to keep issues like paid family leave, a sales tax reduction and a minimum wage increase off the November ballot.

The new law calls for up to 12 weeks of job-protected paid leave to care for a seriously ill or injured family member, to care for a new child, or to meet family needs arising from a family member’s active duty military service. It also authorizes up to 20 weeks of job-protected paid leave to recover from a worker’s own serious illness or injury, or to care for a seriously ill or injured service member.

Some benefits will become available on Jan. 1, 2021, and by July 1, 2021, the full suite of benefits will be made available to Bay State workers.

Employers May Seek Family and Medical Leave Payroll Tax Exemptions

by State House News Service time to read: 1 min
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