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News Guidance on 1099-NEC and Paid Family and Medical Leave

Employers that paid workers via a 1099-NEC are not required to remit contributions on their behalf.
5/21/2020
  • Department of Family and Medical Leave

As of January 1, 2020, the Internal Revenue Service requires the use Form 1099-NEC to report nonemployee compensation.  This income was previously reported in Box 7 of the 1099-MISC form and could be subject to contribution withholding with the Massachusetts Department of Family and Medical Leave (the Department).  The Department is providing this guidance with respect to contribution requirements for any employee previously paid wages via 1099-MISC Box 7 that are now paid via a 1099-NEC.

It is the Department’s opinion that any employer employing individuals that now report those wages via a 1099-NEC, will not be required to remit contributions on behalf of those individuals.  Employers that employ individuals that still receive wages via a 1099-MISC may still be required to remit contributions on their behalf.  Employers should review the Department’s previous guidance on whether contributions are required.

Employers who made contributions on behalf of individuals whose compensation is reported on IRS Form 1099-NEC, should now file amendments to the original PFML returns reporting such contributions. Please see the guidance from the Department of Revenue on how to file an amendment.

Any self-employed individual, including those receiving a 1099-MISC or those now receiving a 1099-NEC are eligible to opt-in to the Massachusetts Family and Medical Leave program.

Department of Family and Medical Leave 

The Department of Family and Medical Leave oversees the Commonwealth’s Paid Family and Medical Leave (PFML) program. This program provides temporary income replacement to eligible workers who are welcoming a new child into their family, are struck by a serious illness or injury, need to take care of an ill or ailing relative, and for certain military considerations.
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