Maryland's FAMLI (Time to Care Act) requires 0.9% contribution for employers with 15+ employees.
Maryland's Family and Medical Leave Insurance (FAMLI) program, known as the Time to Care Act, establishes a statewide paid family and medical leave system. Contributions began on July 1, 2025, and benefits will become available starting January 3, 2028. This program impacts payroll deductions and employer obligations across the state.
Maryland FAMLI (Time to Care Act)
Mandates employer and employee contributions to a statewide paid family and medical leave program, with benefits commencing in 2028.
What those rules do as a Maryland payroll is processed.
Maryland's FAMLI program introduces new mandatory payroll deductions and employer responsibilities. Teambridge automates these calculations and ensures compliance, preventing errors and streamlining your operations.
Automated Contribution Calculation
Teambridge automatically calculates the 0.9% FAMLI contribution based on employee wages, correctly splitting the 0.45% employer share and 0.45% employee share for employers with 15 or more employees.
Accurate Payroll Deductions
Ensures that the employee's portion of the FAMLI contribution is accurately deducted from their wages and remitted to the state, maintaining compliance with the Time to Care Act.
Employer Size Determination
Teambridge intelligently identifies if an employer has 15 or more employees, applying the mandatory contribution requirements correctly. Employers with fewer than 15 employees are not required to contribute the employer share but must still remit employee contributions if applicable.
Compliance, on autopilot.
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Maryland mandates employer and employee contributions to a paid family and medical leave program.
The Maryland Time to Care Act of 2022 established a statewide Family and Medical Leave Insurance (FAMLI) program. This program requires contributions from both employers (with 15+ employees) and employees to fund paid leave benefits for qualifying life events.
Maryland Labor and Employment Article, Title 8.5, Subtitle 1-12. Time to Care Act.
Contribution Structure and Implementation
Effective July 1, 2025, Maryland employers and employees began contributing to the FAMLI fund. The total contribution rate is set at 0.9% of an employee's wages, up to the Social Security wage base. This contribution is split evenly: 0.45% paid by the employer and 0.45% paid by the employee through payroll deductions. Employers with fewer than 15 employees are exempt from paying the employer portion of the contribution but must still deduct and remit the employee's share. Benefits under the FAMLI program will become available to eligible employees starting January 3, 2028.
Covered Reasons for Leave and Benefits
Once benefits become available in 2028, eligible employees can take paid leave for various qualifying reasons, including caring for a new child (birth, adoption, or foster care placement), caring for a family member with a serious health condition, managing their own serious health condition, caring for a service member with a serious injury or illness, or for qualifying exigencies arising from a family member's military deployment. The weekly benefit amount will be capped, and the total duration of leave is limited per benefit year.
Teambridge ensures your Maryland FAMLI compliance is effortless.
Managing new payroll taxes and benefit programs can be complex. Teambridge automates the entire process for Maryland's FAMLI, from accurate deductions to seamless reporting, so you can focus on your business.
Automatic FAMLI Deduction
Teambridge's payroll engine automatically identifies Maryland employees and applies the correct 0.9% FAMLI contribution rate, splitting it accurately between employer and employee based on your company size.
Timely State Payments
We ensure that all collected FAMLI contributions, both employer and employee shares, are remitted to the Maryland Department of Labor on schedule, avoiding penalties and ensuring fund solvency.
Clear Pay Stub Information
Employee pay stubs clearly display the FAMLI deduction, providing transparency and helping employees understand their contributions to the Time to Care Act program.
People also ask.
When did Maryland FAMLI contributions begin?
Contributions to the Maryland FAMLI program, established by the Time to Care Act, began on July 1, 2025.
When will Maryland FAMLI benefits be available?
Eligible employees will be able to start receiving benefits from the Maryland FAMLI program on January 3, 2028.
What is the total contribution rate for Maryland FAMLI?
The total contribution rate is 0.9% of an employee's wages, up to the Social Security wage base.
How is the FAMLI contribution split between employers and employees?
For employers with 15 or more employees, the 0.9% contribution is split evenly: 0.45% paid by the employer and 0.45% paid by the employee through payroll deductions.
Are small businesses exempt from Maryland FAMLI contributions?
Employers with fewer than 15 employees are exempt from paying the employer portion of the FAMLI contribution. However, they are still required to deduct and remit the employee's 0.45% share.
What are the qualifying reasons for taking FAMLI leave?
Once benefits are available, employees can take leave for reasons such as caring for a new child, caring for a family member with a serious health condition, managing their own serious health condition, or for military family exigencies.