Greetings – there’s a lot of info here. If you have employees in Massachusetts, you need to grab your favorite drink and read this through. If not, count your blessings!
Hopefully you’ve been following the news on this one. If not, you’re in for a shock. If you’ve been following along, then time is short for the next steps. Big picture – Beginning January 2021, MA residents will be eligible to receive a maximum benefit of $850/week in paid time off to take care of a serious health issue, a family member with a serious health issue, or to ‘bond with a new child.’ The actual benefit amount will be based on a percentage of the person’s earnings.
Wow! How exciting! So who’s paying for this? Well, for companies with over 25 employees, the company will pay for some and the employee will pay for the rest. For companies with less than 25 employees, only the employees will pay.
If this is happening in 2021, what’s the rush? Well, you have to start collecting/contributing beginning October 1, 2019, Q4 of 2019, and report all of this in January 2020. This will allow time to have funds available for the January 2021 benefit roll out.
September 2019 – This month!
We’re pretty sure there will be refinements, clarifications, and maybe even changes as things unfold. It’s definitely time to plan the software upgrade, setup the new calcs, get the notifications posted in your office and out to your employees (there are some ‘proof’ rules you’ll want to check out), and add the calcs before the first paycheck in October.