On September 29, 2023, the Maryland Department of Labor announced the initial contribution rate for the new Family and Medical Leave Insurance (FAMLI) program, also known as the Time to Care Act. The rate will be 0.90% of covered wages up to the Social Security wage base (currently $160,200) and will be evenly split between employees and employers, each contributing 0.45% of covered wages. Smaller employers with 14 or fewer employees are exempt from making employer contributions. Employees of these smaller employers will still contribute 0.45% of covered wages.
Regulations with further details are expected in early 2024. Contributions will start on October 1, 2024, with benefits available to eligible employees beginning January 1, 2026. The initial contribution rate will continue through at least June 30, 2026.
More information on the Time to Care Act can be found in the April 26, 2022, and May 9, 2023, editions of Compliance Corner.
Maryland Department of Labor: FAMLI Program Contribution Rates Announced »
PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.
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