New Church Payroll Requirements

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For our friends residing in Massachusetts there are some new important payroll requirements starting July 1st, 2019.  Massachusetts has become the 6th state in the US to implement a Paid Family and Medical Leave (PFML) Insurance. 

Employers are required to collect signatures from all Mass employees by June 30, acknowledging that they have notified of the provisions of this new law.  Employers are also required to have their payroll systems collect and pay the employee taxes by July 1, 2019.  Churches and clergy are NOT exempted from this law.

Employers with 25 or more employees are also required to make an employer contribution.

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Covered Individuals are defined as all MA W-2 employees and MA 1099-mis contractors if they make up over 50% of a company’s total workforce.

Benefits become available to employees in January 2021. The max benefits will cover 12 weeks for family leave such as bonding/care for a new child and care for family member with a serious health condition, 20 weeks for personal serious health conditions and 16 weeks for caring for a covered service member. 

Upcoming Dates to Know:

June 30, 2019 - Employers are required to notify all employees about the benefits and contributions.

July 1, 2019 - Employers are required to begin collecting contributions from employees.

October 31, 2019 - Employers remit PFML contributions made for Q3 2019

January 1, 2021 - employees may begin to utilize some benefits

 

If you are wondering how this could impact your church, contact Wisdom for more information!  Call 617-921-9321 or email billoconnell@wisdomoverwealth.com