Maryland FAMLI Program Timeline & Employer Responsibilities
Dear Client,
Maryland’s Family and Medical Leave Insurance (FAMLI) program is entering its final pre-launch phase. As of April 2026, the Maryland Department of Labor has finalized the regulations and implementation timeline.
The transition will begin this year, with financial impacts starting in 2027. Below is an overview of the key dates and requirements to help you prepare for registration, payroll setup, and ongoing reporting.
Critical Timeline
The FAMLI program will roll out in phases. Please note the following key milestones to ensure compliance and avoid penalties:
- Fall 2026: Employer registration opens (paidleave.maryland.gov)
- January 1, 2027: Payroll deductions begin
- April 30, 2027: First quarterly remittance due (covering Q1 2027)
- July 2027: Mandatory employee notices due (6 months before benefits launch)
- January 3, 2028: Employee benefits become available
Contribution Rates & Caps
The contribution rate has been set at 0.9% of covered wages, up to the Social Security wage cap.
- Cost Split: Typically, shared 50/50 between employer and employee (0.45% each).
- Employer Size Threshold:
1) 15+ employees: Employer and employee each contribute 0.45%.
2) Fewer than 15 employees: Employer is exempt from their portion but must still withhold and remit the employee’s 0.45%.
- Optional Coverage: Employers may choose to cover the employee’s share as an added benefit.
Compliance & Administrative Requirements
1) Employer Registration (Fall 2026)
All employers with at least one Maryland employee must register through the FAMLI portal. Employer registration is expected to open in advance of the 2027 contribution start date (with state guidance pointing to a 2026 rollout timeline).
- Each EIN will have a single account
- An Authorized Officer must establish the account
- You may grant our firm access as a Third-Party Agent (TPA) via Power of Attorney
2) Quarterly Reporting (Beginning April 2027)
Employers must submit electronic wage and hour reports each quarter.
- These reports determine employee eligibility and benefit amounts.
- This requirement applies even if you opt into a private (non-state) plan.
3) Employee Notifications
Employers are required to provide written notice to employees at several points:
- At hire (new employees)
- Annually (all staff)
- At least one pay period before the first payroll deduction in 2027
- When an employee requests leave or when a qualifying life event is known
Strategic Considerations
As you prepare for implementation, we recommend considering the following:
- State Plan vs Private Plan:
Employers may opt for an Equivalent Private Insurance Plan (EPIP) starting in 2027. These plans must provide equal or greater benefits at no higher cost to employees.
- Intermittent Leave Planning:
Employees may take leave in increments as small as four hours. Reviewing internal absence policies now can help minimize operational disruptions.
- Benefit Stacking:
Employees may qualify for up to 12 weeks of leave annually, or up to 24 weeks in certain cases (e.g., parental bonding plus personal medical leave in the same year).
We will continue to monitor updates and keep you informed as Maryland releases additional details. The FAMLI program has been delayed in the past, but it now appears to be moving forward, so we want to make sure you are prepared. Please feel free to reach out if you need help with registration, payroll setup, or evaluating your options. We are here to support you.
While much of the administrative side, such as payroll deductions and filings, will be handled by your payroll provider, it is important to understand the broader impact this program may have on your business. Specifically, FAMLI leave could affect staffing levels and workforce planning, as employees may take extended job-protected leave. Being proactive about coverage and planning will be key to minimizing disruption and maintaining your business operations.
Best regards,
Brett Hess, President & CEO,
Business Management Company, Inc.
