Monthly Archives: September 2019

BEWARE: The PFMLA Trap for the Unwary

                Beginning October 1, 2019, employers will begin withholding contributions under the Massachusetts Paid Family and Medical Leave Act (“PFMLA”).    Much of the compliance guidance, including from payroll companies, is out of date regarding the inclusion of individual “independent contractors” in the workforce count and for contribution purposes.  The “short-hand” guidance has stated that individuals to whom the employer issues a 1099MISC, and who are performing services in your trade or business or regularly engaged to perform services, need to be counted in your workforce if more than 50% of your workforce. Unfortunately, the trap is that employers who “count” these individuals for PFMLA purposes also should reclassify such individuals as W-2 employees because they are not properly classified as Independent Contractors in Massachusetts.

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