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Registration
Every employer with at least one employee working in Maryland must register; registration is also the first step in filing a Declaration of Intent. Payroll vendors cannot register on an employer’s behalf, but once registered, an employer may grant its vendor access.
Private Plan Option
Employers considering a private plan instead of the state plan must file a non-binding Declaration of Intent by November 15, 2026, and hold contributions in escrow pending plan approval.
Employee Notice
Employers must give employees written notice at least one pay period before deductions begin, which for most employers means December 2026. The notice may state the contribution rate and whether the employer will cover any portion of the employee’s share. Employers may also wish to explain that benefits will not be available until 2028.
Contributions
The 2027 contribution rate is 0.9% of wages, split equally between employers and employees. Employers with fewer than 15 employees, counted across the entire workforce, do not owe the employer share but must still remit the employee’s 0.45% share. Contributions apply to all employees whose work is localized in Maryland.
Payroll and Reporting
The FAMLI deduction should appear on pay statements beginning with the first 2027 paycheck. Beginning in April 2027, employers must submit quarterly wage and hour reports, even if they elect a private plan. These reported hours determine whether an employee reaches the 680-hour benefit-eligibility threshold.
Existing Leave Policies
Employers may require their own paid leave to run concurrently with FAMLI only if the leave meets certain criteria, including that employees are not required to exhaust other leave first. Employers will need to revisit their leave policies to account for this new program before its effective date.
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