23 Dec New Payroll Updates: What Maryland and Delaware Employers Need to Know

As payroll regulations evolve, businesses in Maryland (MD) and Delaware (DE) must prepare for new programs designed to support workers with paid leave and retirement savings options. These changes aim to enhance employee benefits while requiring employers to adapt their payroll processes. Here’s a breakdown of the key updates.

*Disclaimer: The information provided in this post is for informational purposes only and does not constitute legal, tax, or financial advice. Employers should consult with qualified professionals or official government resources to ensure compliance with applicable laws and regulations.

Maryland Family and Medical Leave Insurance (FMLI)

Starting in 2024, Maryland workers gain access to the Family and Medical Leave Insurance (FMLI) program, offering paid leave for significant life events. Here’s what employers should know:

• Contributions: Employers and employees share the responsibility for quarterly premium payments via the FMLI portal.
• Benefits: Eligible workers can receive up to $1,000 weekly for up to 12 weeks annually.
• Expanded Family Definitions: Unlike the Family and Medical Leave Act (FMLA), FMLI extends to domestic partners, grandparents, grandchildren, and siblings.
• Payroll Adjustments:
  • Payroll deductions begin July 1.
  • The first payment is due by September 30.
  • Wage reports are required for compliance.

For further details, visit the Maryland Paid Leave Employers FAQ.

Delaware Paid Family and Medical Leave (PFML)

Delaware’s Paid Family and Medical Leave program enhances protections for workers starting January 1, 2024. Here are the highlights:

• Contributions: Like Maryland, Delaware requires employers and employees to contribute premiums collected quarterly through a portal.
• Benefits:
  • Up to $900 weekly for:
    • 12 weeks annually for newborn care.
    • 6 weeks within a 24-month period for personal health issues, family caregiving, or military deployment preparation.
• Family Definition: Coverage mirrors FMLA, extending to children, parents, and spouses.
• Payroll Adjustments:
  • Payroll deductions begin January 1.
  • The first payment is due by April 30.
  • Wage reports are mandatory.

More information can be found in the Delaware PFML FAQ.

Delaware Earns: A New Retirement Savings Plan

Delaware has also introduced the Delaware Employee Automatic Retirement Savings (DE EARNS) program, effective October 15, 2024. This initiative helps workers without access to employer-sponsored retirement plans.

• Key Features:
  • Employees are automatically enrolled in a Roth IRA with a 5% contribution rate.
  • Workers can adjust contribution rates or opt out entirely.
• Employer Responsibilities:
  • Registering businesses in the portal is free.
  • Employers assist with payroll reporting via the DE EARNS platform.
• Cost: There’s no cost to employers, making it an attractive benefit to offer.

For more details, visit Delaware EARNS.

Preparing for the Changes

These new programs represent significant steps forward for worker benefits but require proactive measures from employers. Ensuring payroll systems are updated for deductions, reports, and compliance is critical to navigating these changes smoothly. MPI Payroll is here to help—our expert team and comprehensive payroll solutions can assist you in staying compliant and streamlining these updates, so you can focus on your business.

Book a Demo with our Expert Team or Send us an Email Today!