Update: The Maryland General Assembly recently passed a bill SB0485, making some changes to the Time to Care Act. The changes fall into three categories: additional time until the Paid Family and Medical Leave (PFML) program goes into effect, administrative changes, and clarifications and corrections.
Most significantly, the bill changed the PFML program’s timeline:
The definition of “wages'' will now match the Maryland Unemployment Insurance statute. Aligning the definitions will eliminate the need to calculate two different sets of wages for the two programs.
Covered individuals will be able to apply for benefits to care for a service member for whom they are next of kin. This will align Maryland’s Family And Medical Leave Insurance (FAMLI) program with the federal Family and Medical Leave Act (FMLA).
Amendments were made to the language clarifying that employers obtaining coverage through a private plan may not deduct more than 50% of the maximum contribution amount from workers.
Payroll Contributions will be split equally between eligible employers and eligible employees.
The total rate of contribution may not exceed 1.2% of an employee’s wages and shall be applied to all wages up to and including the Social Security Wage Base.
Employees who have worked at least 680 hours over the 12 months immediately preceding the date on which the leave is to begin are eligible for up to 12 weeks of annual paid leave for eligible purposes. The benefits replace up to 90% of an eligible employee’s weekly wages or up to $1,000 per week.
Employees may get up to 24 weeks of paid leave if the eligible employee needs medical leave during pregnancy and parental leave after childbirth.
Benefits are set to begin on July 1, 2026.
Eligible employees may take paid leave to:
Family members are defined as:
For more information on Maryland wage and payroll tax laws, check out our Maryland Wage and Payroll Tax Facts page.
Employers do not need to take any immediate action regarding this PFML requirement as many details are still forthcoming. For further details, check out the agency website. Paylocity is actively monitoring for PFML changes and will provide updates, particularly as actions become required.
Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.
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