ezPaycheck: How to Withhold Paid Family and Medical Leave Contribution from Massachusetts Workers' Paychecks
ezPaycheck payroll software is very flexible. Here is the guide for Massachusetts employers who need to collect Paid Family and Medical Leave Contribution from Workers' paychecks.
PFML benefits will be funded by a payroll or earnings contribution on every dollar of wages or payment for services earned by a covered individual.
For every $100 you earn, a maximum of $0.38 will be deducted for the covered contribution share. This will consist of:
$0.13 to cover your family leave contribution
$0.25 to cover your medical leave contribution
The maximum amount of earnings subject to these contribution rates is $132,900 annually for each covered individual.
Employers will begin making deductions from pay to covered individuals on Oct. 1, 2019
Step 1. Add a deduction for PFML
1.1. Start ezPaycheck, click the left menu Company Settings->Deductions to open the Company Deduction Setup screen.
1.2. Check one Customized deduction item, then clicked the button behind it to open the Deduction Details screen.
1.3. Input the new name (ie: PFML)
1.4. Input the uplimit
1.5. Please check the "Deduction in percentage of wage" option box.
1.6. Click the "Save" button on Deduction Details screen.
1.7. Click the "Save" button on Company Deduction Setup screen to update the database.
Step 2. Edit employee settings to specify the PFML rate
2.1. Select one employee from employee list and edited his deduction option.
2.2. Enter the percent value.
For every $100, a maximum of $0.38 will be deducted.
2.3. Click "next" button until the last page, then click the "Finish" button to save the change.
Step 3. Generate a new check
When you add a new check, you will PFML deduction there.