Effective January 1, 2025, Delaware and Maine will require employers to make contributions to new paid family and medical leave (PFML) programs. Maryland will also have new contributions, effective July 1, 2025. Employee benefits for all three programs will go into effect in 2026.
Delaware
Most employers in Delaware will be required to make contributions of 0.8% of employee wages to the PFML program. Smaller employers (10 to 24 employees) must contribute 0.32% of employee wages. Employers may deduct up to half of the contribution from employees. Employers with 9 or fewer employees are exempt.
Maine
Large employers in Maine must begin making contributions to the PFML program of 1% of employee wages. Smaller employers (14 or fewer employees) must contribute 0.5% of employee wages. Large employers may deduct up to half of the contribution, and small employers may deduct the entire contribution from employees.
Maryland
Effective July 1, 2025, employers in Maryland must begin contributions to the PFML program. Both employers and employees will owe contributions of 0.45% of wages. Employers must withhold and remit the employee’s contribution. Employers with 14 or fewer employees are exempt from the employer contribution but must still withhold and remit the employee share.
The taxable wage base for all three programs is set to the federal social security wage base for 2025, which is $176,100.
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Lorelei Abernathy, Esq., is Editor of PayState Update and Editor of Payroll Information Resources for PayrollOrg.