August 2026 | Maryland FAMLI (Family and Medical Leave Insurance)

The Maryland General Assembly passed the Time to Care Act in 2022, which established a paid family and medical leave program (FAMLI) for Maryland workers. FAMLI allows eligible employees in Maryland up to 12 weeks off from work to care for themselves or a family member and still be paid up to $1,000 per week. The program launches this fall. While contributions to the State begin on January 1, 2027, employees based in Maryland will not begin receiving benefits until January 2028.

FAMLI is funded through employer and employee contributions. Employers will file returns and remit the employer and employee contributions quarterly (due 4/30, 7/31, 10/31, and 1/31). The total contribution rate for FAMLI is 0.9% up to the Social Security wage base. Employers may withhold up to half of the contribution rate (0.45%) from their employees’ pay. Employers with fewer than 15 employees are only responsible for remitting a total of 50% (.45%) of the contribution rate, which may be paid by the employer or instead deducted fully from the employee’s wages.  Each November, starting in 2027, the State will announce a contribution rate for the following calendar year.

Dates to remember:

 ·  September 1, 2026 – November 15, 2026: Employers who want to offer a private plan (instead of the state-offered plan) will be able to submit their Declaration of Intent during this window.  Employers intending to use the State’s plan may skip this step.

 ·  January 1, 2027: Payroll deductions begin for wages paid after this date. Employers using a payroll service should contact their service provider now to discuss implementation ahead of this date.

 ·  April 30, 2027: The first quarterly tax return for the period January 1 – March 31 (along with the employer and employee contributions) is due. Use the FAMLI website to file.

Employers are required to notify employees about paid family and medical leave at specific points in time. FAMLI will create sample notices for employers to use. Sign up for FAMLI’s e-mail list here for updates: email list.

Employers can register for their FAMLI account online at paidleave.maryland.gov. The site also provides frequently asked questions and other program-related details.

For more information, please contact one of the experienced tax professionals at Bormel, Grice & Huyett, P.A. at 301-953-3259.