December 28, 2020

Many Massachusetts Employers With Private Plans Must Renew Exemptions From Remitting Contributions Under MAPFML By December 31, 2020

In 2019, many employers obtained an exemption from remitting contributions to the Family and Employment Security Trust Fund (“Trust Fund”) under the Massachusetts Paid Family and Medical Leave Law (“MAPFML”). To obtain the exemption, employers were required to adopt either a self-insured or fully insured private plan (“Private Plan”) that provided equal to or greater benefits than the MAPFML. Applications for exemptions are accepted and processed through MassTaxConnect on a rolling basis and, if approved, are valid for one year.

Many employers that applied for an exemption were approved for an initial one year period beginning on October 1, 2019 and ending on September 30, 2020. The Massachusetts Department of Paid Family and Medical Leave (“Department”) then extended that initial year of the Private Plan exemption until December 31, 2020. Accordingly, many employers have Private Plan exemptions that will expire on December 31, 2020. Employers must renew their Private Plan exemptions before they expire in order to retain the exemptions. If an employer does not renew the exemption on or before December 31, 2020, the employer will be responsible for remitting contributions to the Trust Fund retroactive to October, 2019.

To renew its exemption, an employer must submit a renewal application by logging into its MAPFML account on MassTaxConnect and, if the Private Plan is fully insured, attaching the completed Confirmation of Insured Policy Form Number. Employers with self-insured Private Plans must have updated bonds that are sufficient to cover the estimated cost of benefit payments under the MAPFML for one year, according to the Department’s bond value formula, which can be found here.

For questions relating to MAPFML, please contact an attorney in Goodwin’s Employment practice.