Update: On May 3, 2023, Maryland’s Governor signed SB 0828 into law that modifies certain provisions within the law and also delays the effective date of payroll contributions and benefit payments.
On April 9, 2022, the Maryland legislature overrode Governor Larry Hogan’s veto, which enacts a Paid Family and Medical Leave Law (PFML) for private-sector employers with 15 or more employees. This PFML program will be funded by payroll contributions split between employers and employees. Maryland’s Department of Labor will determine the rates. Payroll contribution deductions will begin on October 1, 2024.
Payroll Contributions will be split equally between eligible employers and eligible employees.
The total rate of contribution may not exceed 1.2% of an employees 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 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 January 1, 2026.
Eligible employees may take paid leave to:
Family members are defined as:
Employers do not need to take any immediate action regarding this PFML requirement as many details are still forthcoming. The agency released FAQs for reference. Paylocity is actively monitoring PFML 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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