Paid Family and Medical Leave Contributions for Employees
Paid Family and Medical Leave (PFML) program lets employees receive wage replacement when they need to take time off from work for family or medical reasons.
If you have employees working in locations that support paid family and medical leave programs, you are subject to the state’s PFML compliance requirements. Employers of all sizes must either withhold premiums from their employees’ paychecks or opt to cover their employees’ premiums themselves.
The following states currently support the PFML program:
Read the following topics to set up your PFML contribution:
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To set up your PFML contribution in NetSuite, see Set Up PFML Contribution.
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To exempt an employer or employee from a PFML contribution, see Exempt Employers and Employees from PFML Contribution.
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If you want to override an employee contribution rate, see Override Employee PFML Contribution.
Colorado
The Colorado Family and Medical Leave Insurance (FAMLI) rates can be set at the company and employee level.
The following table describes the supported Colorado FAMLI contribution in NetSuite.
|
Contribution |
Description |
|---|---|
|
CO FAMLI Premium (Employee) |
This is an employee-paid family leave contribution. |
|
CO FAMLI Premium (Employer) |
This is an employer-paid family leave contribution. |
Connecticut
The Connecticut paid leave is set on the employee record. Employers are not required to cover the premium.
The contribution code for Connecticut is CT Paid Leave.
Delaware
The Delaware PFML contribution rate can be set at the company and employee level. The total premium rate must not exceed 0.80 percent or 0.008. While the maximum rate an employee can contribute must not exceed 0.004 or 50 percent of the total sum of 0.80 percent.
The rate for the employer contribution will always appear with the default value, even if the employee contribution is set to withhold a different rate. During calculation, the system aligns the correct values on all reports and employee’s pay statement to meet the maximum contribution rates for both employee and employer.
The following table describes the Delaware PFML contributions and their corresponding maximum rates.
|
Contribution |
Description |
Maximum Rate |
|---|---|---|
|
DE Family Leave Contribution (Employee) |
This is an employee-paid family leave contribution. |
0.0004 |
|
DE Family Leave Contribution (Employer) |
This is an employee-paid family leave contribution. |
0.0008 This is also the default rate and cannot be edited. |
|
DE Medical Leave Contribution (Employee) |
This is an employee-paid medical leave contribution. |
0.002 |
|
DE Medical Leave Contribution (Employer) |
This is an employer-paid medical leave contribution. |
0.004 This is also the default rate and cannot be edited. |
|
DE Parental Leave Contribution (Employer) |
This is an employer-paid parental leave contribution. |
0.0032 This is also the default rate and cannot be edited. |
|
DE Parental Leave Contribution (Employee) |
This is an employee-paid parental leave contribution. |
0.0016 |
For more information about Washington’s PFML program, go to https://labor.delaware.gov/delaware-paid-leave-is-coming/.
Maine
The total premium for Maine PFML must not exceed 0.01 percent.
The following table describes the Maine PFML contribution, their corresponding default rates, and the maximum rate depending on your company head count.
|
Contribution |
Description |
Default Rate |
Maximum Contribution (Less than 15 employees) |
Maximum Contribution (15 or more employees) |
|---|---|---|---|---|
|
ME PFML Premium (Employee) |
This is an employee-paid family and medical leave contribution. |
0.00 |
0.25 |
0.50 |
|
ME PFML Premium (Employer) |
This is an employer-paid family and medical leave contribution. The rate for the employer contribution will always appear with the default value, even if the employee contribution is set to withhold a different rate. During calculation, the system aligns the correct values on all reports and employee’s pay statement to meet the maximum contribution rates for both employee and employer. |
0.01 This is the default rate and cannot be edited. |
0.25 |
0.50 |
Massachusetts
The Massachusetts PFML contribution rates are the same for all employees. Therefore, you set the rate at the company level and not for each employee individually.
As of tax year 2019, the total premium is 0.75 percent of the employee’s gross wage. The 0.13 percent goes to the family leave, while the 62 percent goes to the medical leave.
In compliance with Massachusetts agency requirements, the following contribution rates apply depending on the number of employees:
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If your company has less than 25 employees, you are not required to pay the 60 percent medical leave premium. However, the remaining 2 percent can be deducted from the employee’s wages.
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If your company has 25 or more employees, you must pay 60 percent of the 0.62 medical leave premium and 0 percent of the family leave premium. These rates appear as the default values in the Taxes subtab of the Set Up Payroll page.
The following table describes the Massachusetts PFML contribution in NetSuite.
|
Contribution |
Description |
|---|---|
|
MA Family Leave Contribution (Employee) |
This is an employee-paid family leave contribution. |
|
MA Family Leave Contribution (Employer) |
This is an employer-paid family leave contribution. |
|
MA Medical Leave Contribution (Employee) |
This is an employee-paid medical leave contribution. |
|
MA Medical Leave Contribution (Employer) |
This is an employer-paid medical leave contribution. |
For more information about Massachusetts’ PFML program, go to https://www.mass.gov/paid-family-and-medical-leave-information-for-massachusetts-employers.
Oregon
The following table describes the supported Oregon PFMLI contribution in NetSuite.
|
Contribution |
Description |
|---|---|
|
OR PFMLI Contribution (Employee) |
This is an employee-paid family leave contribution. |
|
OR PFMLI Contribution (Employer) |
This is an employer-paid family leave contribution. |
Washington
The Washington PFML contribution rates are the same for all your employees. Therefore, you set the rate at the company level, and not for each employee individually.
As of 2019 tax year, the total premium is 0.4 percent of the employee’s gross wage. The 33.333 percent of the premium goes to the family leave and the 66.667 percent goes to medical leave.
Important things to note about the rates:
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Employers who choose to withhold premiums may withhold no more than 63.333 percent of the total premium and must pay the remaining 36.667 percent.
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If your company has less than 50 employees, you do not need to pay the employer portion of the premium. However, you must withhold the employee portion or cover it yourself.
The following table describes the Washington PFML contribution in NetSuite.
|
Contribution |
Description |
|---|---|
|
WA Paid Family Leave State Plan |
This contribution is employee-paid and must be 0.333 of the total contribution. |
|
WA Paid Medical Leave State Plan (Employee) |
This is an employee-paid medical leave contribution. |
|
WA Paid Medical Leave State Plan (Employer) |
This is an employer-paid medical leave contribution. |
For more information about Washington’s PFML program, go to https://www.esd.wa.gov/paid-family-medical-leave.
Set Up PFML Contribution
To set up the state’s PFML contribution codes in NetSuite, you must perform the following actions:
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To make the contribution codes available in NetSuite, you must first update your payroll information. Follow the steps in Updating Payroll Information to commit payroll changes and updates.
After updating your payroll information, the new contribution codes should be available under the Taxes subtab of the Set Up Payroll and employee record pages.
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Set up the PFML contribution rates. Depending on the state requirements, you can set up your contribution rates from the company or employee level.
Note:Some PFML contribution codes have default values. Read the state section to check if the PFML contribution codes for your state allow overriding of rates.
To set the PFML rates from the company level, follow the steps in Setting Specific Tax Rates.
To set the PFML rates from the employee level, you must set an override amount for the PFML contribution codes on the employee record. For more information, see Override Employee PFML Contribution.
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Set the tax agency by updating each PFML contribution code
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Go to Lists > Employees > Payroll Items.
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Click the state PFML tax payroll item record.
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Click Edit.
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Select a tax agency from the Agency list.
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Click Save.
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Repeat steps 1 – 5 for all applicable PFML tax codes.
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Exempt Employers and Employees from PFML Contribution
SuitePeople U.S. Payroll lets you exempt an employer or employee record if the PFML contribution is not applicable.
To exempt an employer from a PFML contribution:
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Go to Setup > Payroll > Setup Tasks > Set Up Payroll .
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Click the Taxes subtab.
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Check the Exempt box next to any contribution code that is not applicable.
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Click Save.
To exempt an employee from a PFML contribution:
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Go to Lists > Employees > Employees.
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Click Edit next to the name of the employee.
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Click the Payroll subtab.
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Check the Exempt box beside the PFML tax that apply to the employee.
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Click Save.
Override Employee PFML Contribution
For Delaware and Maine PFML, SuitePeople U.S. Payroll lets you override the rate contribution for your employees.
Before you enter an override amount, take note of the maximum rate allowed for employee PFML contribution. When you enter an amount higher than the maximum rate, during tax calculation, the system automatically adjusts the rates to meet the maximum employee contribution.
To override the PFML rates on the employee record:
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Go to Lists > Employees > Employees.
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Click Edit next to the employee record you want to update.
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From the Payroll subtab, click Taxes subtab.
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Find the PFML codes that are available under the employee's tax profile.
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In the Tax Override Method column, select Percentage.
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In the Override Amount column, enter an override amount. The value must be in decimal format.
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Click Save.