Massachusetts Paid Family and Medical Leave (PFML) is one of the most common sources of confusion for small business owners in the state. This guide explains exactly how it works, what you owe, and how to calculate it.
What Is PFML?
PFML is a Massachusetts program that provides employees with paid time off for qualifying family and medical reasons — things like welcoming a new child, caring for a seriously ill family member, or recovering from a serious health condition themselves.
It’s funded through payroll deductions. Employers and employees both contribute, though the split depends on your company size.
2025 PFML Rates
The total PFML contribution rate for 2025 is 0.88% of covered wages, applied up to the Social Security wage base ($176,100 in 2025).
| Rate | Who Pays | |
|---|---|---|
| Family leave | 0.18% | Employee only |
| Medical leave | 0.70% | Split between employer and employee |
| Total | 0.88% |
Employer Size Matters
Fewer than 25 employees: You are exempt from the employer share of medical leave. Employees pay the full 0.70% medical leave contribution themselves.
25 or more employees: Employers must contribute at least 60% of the medical leave rate (0.42%). The remaining 40% (0.28%) comes from the employee. You may choose to cover more than 60%.
Example Calculation
Employee earning $1,500/week, employer has 10 employees:
- Medical leave (employee pays 100%): $1,500 × 0.70% = $10.50/week
- Family leave (employee pays 100%): $1,500 × 0.18% = $2.70/week
- Total employee deduction: $13.20/week
- Employer contribution: $0 (fewer than 25 employees)
Same employee, employer has 30 employees:
- Medical leave — employee share (40%): $1,500 × 0.28% = $4.20/week
- Medical leave — employer share (60%): $1,500 × 0.42% = $6.30/week
- Family leave (employee pays 100%): $1,500 × 0.18% = $2.70/week
- Total employee deduction: $6.90/week
- Employer cost: $6.30/week
Remittance Deadlines
PFML contributions are submitted quarterly to the Department of Revenue, on the same schedule as state income tax withholding. Late payments carry interest and penalties.
| Quarter | Period | Due Date |
|---|---|---|
| Q1 | Jan–Mar | April 30 |
| Q2 | Apr–Jun | July 31 |
| Q3 | Jul–Sep | October 31 |
| Q4 | Oct–Dec | January 31 |
Private Plan Exemption
If you offer a private paid leave plan that is at least as generous as the state program, you can apply for an exemption and stop contributing to the state fund. Exemptions must be approved by the Department of Family and Medical Leave (DFML) and renewed annually.
Common Mistakes
- Forgetting the wage base cap. Once an employee’s year-to-date wages exceed $176,100, PFML contributions stop for the rest of the year.
- Miscounting employees. The 25-employee threshold is based on your Massachusetts workforce, not total company headcount.
- Not notifying employees. You’re required to post the PFML notice in your workplace and provide written notice to new hires.
Use the Calculator
Rather than doing this by hand every pay period, the OtterDesk payroll calculator automatically calculates PFML for every Massachusetts pay run — including the employer share based on your employee count.