At a recent AIM Human Resource Roundtable, the Director of the Department of Family and Medical Leave (DFML) shared several updates to Massachusetts Paid Family and Medical Leave law. Bill Alpine highlighted important changes that HR teams should be aware of as we move into 2025 and 2026.

Enhanced Communication & Transparency (2025 Updates)

The Department of Paid Family and Medical Leave (DFML) has introduced new tools and reminders aimed at improving the application and review process:

• More reminders for Leave Administrators: DFML now sends automatic email reminders as the 10-business-day review deadline approaches—at 5 days left, 2 days left, and again if the deadline has passed.
• Request For Information reminders for employees: When DFML issues a Request for Information, employees now receive reminder emails on Days 9, 14, and 24, helping prevent delays in processing claims. The reminders stop once the requested information is submitted.

Improved Leave Administrator dashboard: Administrators now have access to:

• A clear timeline of milestone dates
• A “to-do” column for outstanding action items
• A downloadable CSV file of leave data
• Employee wage and benefit details are directly on the application page, making it easier to calculate employer top-off amounts (if utilized by the company).

IRS Guidance on PFML Tax Treatment (Applicable in 2026)

On January 15, 2025, the IRS released Revenue Ruling 2025-4, clarifying how contributions and benefit payments under state-run PFML programs should be taxed and reported.

Starting January 1, 2026, both DFML and participating employers must comply with the updated remitting and reporting requirements. Employers should review the full IRS memo and DFML guidance – https://www.mass.gov/doc/dfml-tax-memo-october-2025/download and https://www.mass.gov/info-details/taxes-on-paid-family-and-medical-leave-pfml-benefits

– to understand how these changes may affect payroll and year-end reporting.

2026 Rates, Notices & Weekly Wage Updates

• No contribution rate changes for 2026—rates remain the same as 2025.
• Average weekly wage increase: From $1,829.13 in 2025 to $1,922.48 in 2026, which may affect benefit calculations.
• Updated 2026 PFML posters and notices are now available on the DFML website. These are offered in 14+ languages to support multilingual workforces.
  https://www.mass.gov/info-details/pfml-workplace-poster-notices-and-rate-sheets-for-massachusetts-employers