New Members
Please be advised: New legislation shifts employer contributions from medical leave to family leave, effective January 1, 2027. This change in contribution structure will mitigate the impact of recent IRS guidance on the tax treatment of Massachusetts PFML benefits.
How Upcoming PFML Contribution Rate Changes Impact Tax Guidance
Previously, the Department of Family and Medical Leave (DFML) distributed information about IRS Revenue Ruling 2025-4, which clarified that medical leave benefits attributable to employer contributions are taxable wages. In response to the new IRS guidance, Governor Healey signed Chapter 101 of the Acts of 2026 on June 12, 2026 . This legislation mitigates the impact of tax and reporting requirements on employers by adjusting how PFML contributions are structured. Under this new legislation, no employer contributions will be made for medical leave benefits, so no medical leave benefits will be taxed as wages. The 2027 contribution rate to be determined by DFML on or before October 1 will reflect the legislative change for contribution rates that take effect beginning on January 1, 2027.
Learn more about PFML contribution rates.
DFML Contact Center (833) 344-7365
Hours of operation: Monday-Friday, 8 a.m. - 4:30 p.m. ET
Get answers to your questions in English, Español, and Português.
Translation services for up to 240+ languages are also available.
