Department of Family and Medical Leave – Update

The Department of Revenue recently released important information on how to report PFML Wages for the 4th Quarter 2019 Paid Family and Medical Leave Return. The Department of Family and Medical Leave is providing this update for all employers participating in the Commonwealth’s PFML program to ensure an accurate filing of withholdings by the quarterly deadline of January 31, 2020.

PLEASE BE AWARE THAT THIS REPORTING REQUIREMENT DOES NOT APPLY TO EMPLOYERS THAT HAVE RECEIVED AN EXEMPTION FROM BOTH THE FAMILY AND MEDICAL LEAVE PROGRAMS OR ARE CONSIDERED EXCLUDED EMPLOYMENT PER SECTION 6 OF THE UNEMPLOYMENT STATUTE.

IF YOU HAVE ONLY RECEIVED AN EXEMPTION FOR ONE LEAVE PLAN, YOU MUST SUBMIT FOR THE NON-EXEMPTED PLAN, ACCORDING TO THE INFORMATION PROVIDED BELOW.


When reporting 2019 PFML contributions, please report fourth quarter wages only in both the PFM Eligible YTD Wages and Wages This Quarter boxes on the MassTaxConnect return. For the calculation to be correct, do not report actual 2019 year-to-date wages in the PFM Eligible YTD Wages box.

The reason for reporting only fourth quarter earnings in the PFM Eligible YTD Wages box is that contributions were not withheld for the first three quarters of 2019, so the Social Security annual wage cap should only be applied against fourth quarter wages.

This will only be necessary for this first PFML reporting as contributions were not withheld on all 2019 wages.  When submitting future returns, you will report the actual YTD wages in the appropriate box.


IF YOU HAVE BOTH W-2 EMPLOYEES AND INDEPENDENT CONTRACTORS, BUT YOU OUTSOURCE ONLY W-2 PAYROLL SERVICES TO A THIRD PARTY
Important information about the timing of reporting

If your company outsources only W-2 payroll services to a third party, and handles reporting for your independent contractors (whose payments are reported on 1099-MISC) internally, there are some rules to follow when filing returns. It’s very important that the reporting be done in a specific sequence for it to be processed correctly.

First, the payroll service, filing on behalf of your salaried employees (W-2s), must file before you file on behalf of your “covered contract workers” (1099-MISCs covered under the PFML Statute). Next, when you file on behalf of your covered contract workers, you must identify your filing as an amendment to the return already filed by your payroll service (see screenshot below). Please follow this sequence to be certain the information is properly recorded.

MORE INFORMATION

The Department of Family and Medical Leave oversees the Commonwealth’s Paid Family and Medical Leave program. Check out their website for a fact sheet, guides and information for both employers and workers.

You will find more information on exemption requests, registration, contributions, and payments for the Paid Family and Medical Leave program from the Department of Revenue.

While You Are Away, Cybercriminals Will Prey

Travel seems to be on everyone’s calendar this winter. If that’s the case for you, safety and security are likely uppermost on your minds today. So great is the concern that 72% of U.S. travelers said they would pay more for their vacation if they could ensure greater security, according to a recent survey by Travelzoo. What travelers may not realize is that cybercrime is now as much a threat, if not more, than conventional dangers.

Whatever your travel plans, you should be aware of the following safety and security issues:

A Safe-Travel Cyber Checklist

Don’t discuss travel plans on social media.  Social media is great for keeping family and friends informed about your travels, but sharing can backfire if cybercriminals find out when you are away and burgle your home. Do not post travel dates or itineraries, and warn your children not to share their own or your travel plans — and never to reveal when no one is home.

Be wary of public Wi-Fi. You should always use secure connections when going online in public places. If you have to use an unsecured connection, never check bank balances, login to credit card or other accounts, or share important personal information. This information can easily be stolen over an unsecure network. Also, turn off Bluetooth and other connectivity features when in a public area, as these features can be just as vulnerable as Wi-Fi.

Be careful getting cash and making payments. Be cautious of where you make payments or get cash, since these are the key access points for identity theft among cybercriminals. Using ATMs at a bank branch is safer than using standalone ATMs, and using a credit card for merchandise purchases is safer than using a debit card, which provides direct access to a bank account. You should be sure that your liability policy has identity theft coverage.

Turn off home computers. Many people leave their computers on as a matter of habit, but always-on computers are more susceptible to hacking.

Back up all data. Storing all sensitive files in a secure facility on the cloud is recommended, as is backing up data onto a removable storage device that can be kept in a home safe.

Change passwords. If you are taking an iPhone on your trip, we suggest you change your Apple ID password to something long and difficult to hack. Also remove credit card information associated with your Apple account and turn on the lock-screen passcode. That way, if your phone is lost or stolen, little information can be accessed. Also turn on the “Find My Phone” feature, which can help you find a misplaced or stolen device and the information stored on it.

Register for the Smart Traveler program. The State Department’s Smart Traveler Enrollment Program (STEP) at https://step.state.gov/ is a free service that allows citizens traveling abroad to enroll their trip with the nearest U.S. embassy. Enrollment enables embassies to reach travelers in an emergency, as well as help family and friends contact the travelers.

Protect the home while away.  If you will be gone for any period of time you should take the following steps to protect their homes from cybercriminals:

  • Alert the home alarm provider so they will know the house is vacant; ask their alarm company if they offer an encryption tool for their home security system to make it less vulnerable to hackers.
  • Disconnect the garage door opener and lock it manually to protect from criminals who can crack the electronic code.
  • Unplug any devices or appliances connected to the internet.

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