State will delay collecting new tax for paid family and medical leave for three months

Gov. Charlie Baker and legislative leaders agreed Tuesday to delay collecting a payroll tax for the new paid family and medical leave program by three months.

“To ensure businesses have adequate time to implement the state’s Paid Family and Medical Leave program, the House, Senate, and Administration have agreed to adopt a three month delay to the start of required contributions to the program,” said a joint statement by Baker, House Speaker Robert DeLeo, D-Winthrop, and Senate President Karen Spilka, D-Ashland. “We will also adopt technical changes to clarify program design. We look forward to the successful implementation of this program this fall.”

The state had planned to start collecting payroll taxes to fund the new program beginning July 1, 2019. Benefits are set to start in January 2021.

But both the Associated Industries of Massachusetts and Raise Up Massachusetts, the labor coalition pushing for paid family leave, had asked for a delay in collecting the tax, until Oct. 1, 2019. The delay was meant to give employers more time to understand the rules and inform employees, and for insurers to offer a private sector-based option that businesses could adopt instead of the state paid leave program.

Read more: https://www.masslive.com/news/2019/06/state-will-delay-collecting-new-tax-for-paid-family-and-medical-leave-for-three-months.html