Press Release: 2020-01-14

Ask the Hotline | W-2s for Paid Family Leave Contributions

Ask the Hotline | W-2s for Paid Family Leave Contributions


January 13, 2020
 
Question
 
Is there any information about how an employer should handle family and medical leave contributions under the tax code? I’m aware that there are still open questions about how the Internal Revenue Service will treat both the contributions and the benefits, but as we prepare to issue the W-2s that will include the final quarter of 2019, what should we do for the W-2s? 
 
Answer
 
We reviewed the Massachusetts Department of Revenue (DOR) website and found the following information on how the department expects employers to handle the W-2 issue. The website also includes several helpful videos that employers may wish to look at as they prepare for compliance with the paid family leave law.
 
There is an extensive paid family leave FAQ compliance page that is available here
 
On the issue of how to handle the W-2s DOR lists the following information:
 
Q. How should businesses report year-end Paid Family and Medical Leave (PFML) contributions on IRS Forms W-2 and 1099-MISC?
 
Businesses will report contributions in Box 14 (Other) for Form W-2 and in Box 16 (State tax withheld) for Form 1099-MISC. The contribution line on both forms will read “MAPFML.”
 
The webpage also includes helpful videos on how to comply with different aspects of the law. We have included the hyperlinks to these instructions and videos below.
 
https://www.mass.gov/info-details/register-for-paid-family-and-medical-leave-contributions-without-an-existing
https://www.mass.gov/info-details/register-for-paid-family-and-medical-leave-contributions-with-an-existing
https://www.mass.gov/info-details/file-a-return-and-remit-a-contribution-for-paid-family-and-medical-leave
https://www.mass.gov/info-details/opt-in-and-contribute-to-paid-family-and-medical-leave-as-a-self-employed-individual
https://www.mass.gov/info-details/upload-a-bulk-paid-family-and-medical-leave-return
https://www.mass.gov/info-details/upload-an-excel-spreadsheet-and-make-a-payment-for-paid-family-and-medical-leave
https://www.mass.gov/info-details/request-a-paid-family-and-medical-leave-exemption
We anticipate many developments regarding the implementation of the paid family leave law. AIM staff will be presenting training sessions on the law throughout 2020. 
 
Employers interested in learning more about this issue, other leaves of absence issues or any other hotline matter may call the AIM Employer Hotline at 800-470-6277.