Determining your total workforce
As a Massachusetts employer, your responsibility for making contributions under the Paid Family and Medical Leave (PFML) law depends on the makeup of your workforce. To make sure you're correctly assessed for contributions, it's important that you properly report the size and makeup of your Massachusetts workforce to the Department of Family and Medical Leave.
Your total workforce includes:
- All Massachusetts W-2 employees (full-time, part-time, seasonal, union-represented or not, any age). Generally, an MA W-2 employee is anyone for whom you do payroll withholding through MassTaxConnect.
- All Massachusetts 1099-MISC contractors. An MA 1099-MISC contractor is an individual who resides and performs services in Massachusetts for whom you are required to report payment for services on IRS Form 1099-MISC.
You'll always report your total workforce numbers, but you're only responsible for submitting contributions on behalf of members of your workforce who are treated as covered individuals for the purposes of the PFML law.
Each quarter, you'll be required to remit the required employee contributions for all covered individuals in your MA workforce. You may deduct all or part of the required employee contribution from amounts you pay to covered individuals. If your MA workforce has fewer than 25 covered individuals, you are not responsible for paying the employer's contribution.
Counting MA W-2 employees as covered individuals
MA W-2 employees will always count as covered individuals as long as you generally withhold income tax for them through MassTaxConnect. These employees don't need to reside in Massachusetts to be covered.
You will always be responsible for making payroll withholdings and contributions on their behalf. This applies to:
- Full-time employees
- Part-time employees
- Seasonal employees
Counting MA 1099-MISC contractors as covered individuals
In order for a 1099-MISC contractor to be considered part of your MA workforce count, they must:
- Perform services as an individual entity
- Live in Massachusetts
- Perform services in Massachusetts
If a contractor meets these criteria, you should count them as a member of your MA workforce.
You’re required to withhold contributions from your MA 1099-MISC contractors only if they make up more than 50% of your total MA workforce (MA W-2 employees and MA 1099-MISC contractors combined). These contractors will be considered covered individuals.
DFML hours of operation: 9 a.m.-5 p.m., DOR hours of operation: 8:30 a.m.-4:30 p.m.