Set Up Massachusetts Paid Family and Medical Leave Deduction Code

Before using the Create Quarterly Family and Medical Leave File screen, you must set up the deduction code for tracking Paid Family and Medical Leave and then assign the deduction to the employees.

Guidelines for Massachusetts:

Take note of the following guidelines for setting up employee deductions:

  • You must set up only one deduction with the deduction type of MAPFML for each employee. If you add multiple deductions with a deduction type of MAPFML for an employee, the system may not report the taxable wages correctly.
  • If you use a deduction modifier code for the Massachusetts Paid Family and Medical Leave deduction, the deduction modifier code should add/subtract the same pay types for both contributions and deductions. For example, if a deduction uses a deduction modifier code where the Bonus pay type is subtracted out, the contribution should also use a deduction modifier code that subtracts out the Bonus pay type.

    When the system creates the reporting file, it will add/subtract any Deduction Modifier pay types for both contributions and deductions to determine the taxable wages. It will not double the amount to add/subtract when the pay type applies to both the deduction and contribution.

    For example, if an employee earns the following:

    • Gross Wages: 5000
    • Regular Wages: 4500
    • Bonus: 500

    If Bonus pay type is a pay type excluded from both the contribution and deduction, the taxable wages will be 4500, NOT 4000.

  • When an employee is set up with a Massachusetts Paid Family and Medical Leave deduction, they should also have MA as their SUTA state.

Set Up the Massachusetts Paid Family & Medical Leave Deduction Code

This is an example of how to set up the Massachusetts Paid Family Medical Leave deduction code in Costpoint for employers with 25 or more employees if they opt to have the employee pay the maximum percentage of gross wages allowable by Massachusetts.

Note: The example below is based on the State of Massachusetts requirements which can be amended in the employee's favor (the employer may opt to pay a portion of the employee premium). The percentages in the example are based on the Massachusetts State Employment Security Department's 2019 regulations. The values may change in the following years.

To set up the Massachusetts Paid Family & Medical Leave Deduction Code in 2019 :

  1. Click People > Payroll > Deductions > Manage Deductions.
  2. Specify a unique code to represent the Massachusetts Paid Family and Medical Leave deduction/contribution.
  3. Select a Deduction Type of MAPFML.
  4. In the Deduction section of the Details tab, enter the following, and then set other deduction values as needed:
    Field Value
    Computation Method

    PCTGRS

    Rate

    0.3780% (which is the combination of 100% of the Family Leave premium and 45% of the Medical Leave premium)

    Calculated as follows:

    (40% x 0.62%) + (100% x 0.13%)

    = 0.2480% + 0.1300%

    = 0.3780%

    Ceiling Method

    Payroll Year

    Ceiling Amount

    336.68

    Massachusetts regulations state the amount of wages subject to a premium assessment is capped at the maximum wages subject to social security tax. In 2019, the social security wage limit is 132,900.00. The Ceiling Amount must be manually calculated and entered each year, based on the following formula: SS Wage Limit x Deduction Rate %. In 2019, this is 132,900.00 x 0.3780%, which results in a Ceiling Amount of 502.36.

  5. In the Contribution section of the Details tab, enter the following, and then set other contribution values as needed:
    Field Value
    Computation Method

    PCTGRS

    Rate

    0.3720%

    Calculated as follows:

    = 60% x 0.62%

    = 0.3720%

    Ceiling Amount

    494.39

    Massachusetts State regulations state the amount of wages subject to a premium assessment is capped at the maximum wages subject to social security tax. In 2019, the social security wage limit is 132,900.00. The Ceiling Amount must be manually calculated and entered each year, based on the following formula: SS Wage Limit x Deduction Rate %. In 2019, this is 132,900.00 x 0.3720%, which results in a Ceiling Amount of 494.39.

  6. Click Save.