The Maryland Department of Labor has issued detailed guidance for employers on registering for the state's paid Family and Medical Leave Insurance (FAMLI) program. Online registration is mandatory for any employer with one or more Maryland employees in advance of the contribution start date of January 1, 2027.

After registration, employers are automatically enrolled in the state plan unless they pursue an approved private plan option. Registration is intended to establish access for future contribution, reporting and claim administration activities.

The initial registration must be completed by an Authorized Officer, that is, the company's owner or partner, executive director, CEO, CFO, COO, president, secretary, household employer, or another designated individual with equivalent legal authority. After registration, the employer can grant a third-party administrator (TPA) access.

Background

On April 9, 2022, the Maryland legislature enacted SB 275, establishing a statewide FAMLI program designed to provide eligible employees with paid, job protected leave for specified family and medical reasons, funded through payroll contributions from employers and employees (Tax Alert 2022-0686.)

Since enactment, the program's implementation timeline has been delayed twice by subsequent legislation, reflecting the state's effort to allow additional time for regulatory development, system readiness and employer preparation. First, Maryland delayed the original contribution and benefits start dates through legislation enacted in 2023. (Tax Alert 2023-1029.) More recently, legislation moved the contribution start date to January 1, 2027, with benefits scheduled to become available no earlier than January 2028. (Tax Alert 2025-1335.)

The program is financed by mandatory payroll contributions, with the total contribution rate for 2027 set at 0.9% on wages up to the annual Social Security wage limit. The contribution rate is split evenly between employees and employers with 15 or more employees, while employers with fewer than 15 employees are exempt from the employer portion of the contribution.

Employers are required to notify employees about Maryland's FAMLI program on all the following occurrences:

• One pay period before payroll deductions begin
• Starting July 1, 2027 (six months before benefits begin)
• When the employee is hired
• Once a year
• When the employee requests FAMLI benefits
• When the employer knows the employee is taking leave for a qualifying reason

Ernst & Young LLP insights

Employers with Maryland employees should identify the individual who will serve as the Authorized Officer and verify that all required registration data are readily available.

Companies using payroll providers, professional employer organizations or other service providers should remember that third-party agents cannot complete the initial registration.

Employers may wish to coordinate among payroll, HR, tax and legal functions to establish appropriate account governance, user access controls and reporting responsibilities before starting the registration process.