Standards for fully insured paid leave plans
Massachusetts employers that offer approved private plans with paid leave benefits that are equal to or more generous than those provided under the Paid Family and Medical Leave (PFML) program may be eligible to request an exemption from making family or medical leave contributions. Exemptions are only available to employers. Individuals cannot apply for an exemption from contributions deducted from their wages by their employer.
There are two types of plans that can qualify for exemptions:
Applying for a private plan exemption
If you are an employer and want to apply for an exemption from making contributions for family leave, medical leave, or both, you must submit an application through MassTaxConnect and it must be renewed annually. Get step-by-step instructions on how to apply for an exemption with MassTaxConnect.
Certain employers are automatically excluded and do not need to apply for an exemption. If you have questions about your contributions’ status, please contact the Department of Revenue at (617) 466-3950.
To be granted an exemption, the benefits you provide must be greater than or equal to those provided under M.G.L c.175M (the paid leave law). This means your approved plan must meet all the minimum requirements and must not cost your covered individuals any more than they would be required to contribute to the state plan under the paid leave law.
Employers seeking Paid Family and Medical Leave (PFML) exemptions must submit separate applications for each entity that has its own federal Employer Identification Number (FEIN) and a Massachusetts workforce.
Applications must be approved in the quarter prior to the quarter in which they go into effect.
Employers applying for an exemption will receive an email notification that a decision has been made within 1-2 business days. Employers can log in to MassTaxConnect to review the decision.
If approved, the employer will receive a letter with instructions.
If the exemption is denied, you will be given the reason for the denial. You may request a follow-up review.
If you are granted an exemption, your covered individuals will still be entitled to the rights and protections provided under MGL c. 175M. This includes:
- The right to appeal a decision about their application for benefits
- The right to job protection during any leave taken
- Protections against retaliation from taking leave or exercising other rights under paid leave law
Department of Family and Medical Leave - Hours of operation: Monday-Friday, 8 a.m. - 5 p.m.
Department of Family and Medical Leave - Hours of operation: Monday-Friday, 8 a.m - 5 p.m.
Department of Revenue - Hours of operation: Monday-Friday, 8:30 a.m. - 4:30 p.m.
|Last updated:||December 10, 2021|