Assisting Employers in Massachusetts with Statutory Disability Placements
"Learn how we can help employers in Massachusetts navigate the new legislation requiring short term disability and paid family leave benefits. Secure private plan exemptions to save on costs and prepare for the upcoming changes in employee benefits."
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Presentation Transcript
Our ability to assist our brokerage community with statutory disability placements has now been expanded to include the State of Massachusetts. Reuben Warner Associates has been assisting our brokerage community with the placement of Statutory Disability Programs since the laws were enacted in the 1940s. (NY DBL, NJ TDB, HI TDI). Earlier this year Massachusetts passed legislation requiring employers to provide short term disability and paid family leave benefits set to begin 1/1/21. Although we are more than one year away from the launch of this new benefit, the time to act is now! We can assist in securing private plan exemptions for your clients starting now which will eliminate Employer and Employee Contributions for up to 5 quarters (10/1/19 1/1/21).
Partial Income replacement due to Non-Occupational Injury or Illness. Partial Income replacement for individuals seeking time away from work for family events such as: Welcoming a new child to the family Caring for a family member with a serious health condition Preparing for a family member s military service requirement *The above are a few examples of paid family leave events
For Employers with 25 or more employees in MA, the cost for this new coverage is intended to be shared between both Employer and Employee. For groups under 25 lives, employers are not required to pay the employer s share of contributions. Short Term Disability (Medical Leave) $.62/$100 of taxable wages of which 60% Paid by Employer ($.372/$100) 40% Paid by Employee via payroll deduction ($.248/$100) Paid Family Leave Coverage: 100% Employee Funded via payroll deduction at a rate $.13/$100 of taxable wages Maximum Benefit of $850 per week. Adjusted to 64% of the state average weekly wage. Weekly benefit will change annually. Cost will be calculated using the Social Security Income Limit of $132,900.
Employers seeking approved private insurance plans must file for their exemption by December 20, 2019 otherwise contributions to the State Fund would be required retroactively to 10/1/19. January 31, 2020, Employers will be required to file quarterly reports through MassTaxConnect. January 1, 2021 Employees will be eligible for up to 12 weeks of paid family leave and 20 weeks of paid medical leave. July 1, 2021 Employees can begin claiming benefits for care of a family member with a serious health condition.
Private insurance carriers may be in a position to offer a more competitive rate structure and have experience in claims handling. By securing an exemption now, your clients will eliminate the prefunding requirement which translates to possibly 1 year s premium savings for both the employer and employee. To quote, secure a census of MA employees including salary, gender and date of birth for all employees (full time/part time) and forward to our attention with the Legal Name and Address of the Employer.
For Questions, please contact a member of the Statutory Disability Benefits Team: Team Member Title Email Address Extension Anthony Cortese Vice President Abcortese@rwarnerinc.com 718.477.7370 Mark Wintjen AVP Mwintjen@rwarnerinc.com 718.477.7371
1655 Richmond Avenue Staten Island, NY 10314 Phone: 800-421-3005 Website: Rwarnerinc.com Your success is our goal.
