Applies to: Patriot payroll customers with a Maryland work location or an employee who works from home in Maryland. Maryland PFML contributions begin with pay dates on or after January 1, 2027.
Maryland Paid Family and Medical Leave (MD PFML) is Maryland's Family and Medical Leave Insurance (FAMLI) program. MD PFML contributions start January 1, 2027, and employees can begin using MD PFML benefits in January 2028. Every employer with at least one employee working in Maryland must provide MD PFML coverage. This article explains how MD PFML contributions work and how to set up MD PFML in Patriot's payroll software.
What is Maryland PFML?
Maryland PFML is a state insurance program funded by contributions from both employers and employees. Patriot calculates MD PFML contributions on payroll based on the MD PFML settings you save in the software.
Who is covered: Employees who work in Maryland, including employees who work from home in Maryland. Federal employees are not covered.
Who is not covered in Patriot: An employee who lives in Maryland but works at a location in another state does not have MD PFML calculated.
Employer registration: Visit the Maryland FAMLI employer page for state registration and reporting requirements.
Maryland PFML contribution rate and wage base
The 2027 Maryland PFML contribution rate is 0.90% of wages, split 50/50 between the employer and the employee by default:
Employer share: 0.45% of wages (employers with 15 or more employees)
Employee share: 0.45% of wages, deducted from the employee's paycheck
Wage base limit: MD PFML contributions stop once an employee's wages reach the Social Security wage base ($192,300 in 2027)
Wages subject to MD PFML: The same wages that are subject to Maryland unemployment insurance (SUTA)
Maryland announces the MD PFML contribution rate each November. The rate cannot exceed 1.2%.
Example: An employee earns $1,000 in a pay period. The total MD PFML contribution is $9.00 ($1,000 × 0.90%). With the default 50/50 split, the employer pays $4.50 and $4.50 is withheld from the employee's paycheck.
Maryland PFML for employers with fewer than 15 employees
Employers with fewer than 15 total employees are not required to pay the MD PFML employer share, but the MD PFML employee share (0.45%) still applies. The 15-employee count includes employees who work outside Maryland.
For 2027, Maryland determines employer size each quarter, so whether an employer owes the MD PFML employer share can change from quarter to quarter.
Starting in 2028, Maryland determines employer size once a year, and that size applies to the entire following calendar year. Patriot does not change the employer size automatically. Update your Maryland PFML settings if your employer size changes.
How to Set Up Maryland PFML in Patriot payroll
Set up Maryland PFML on the Maryland tab at Settings > Payroll Settings > Paid Family Medical Leave. The Maryland tab only appears if your company has a Maryland work location or an active employee who works from home in Maryland. Answer each Maryland PFML question in order, then click Save once at the end.
Step 1: Answer the Maryland PFML employer share question
On the Maryland tab, answer "Are you required to pay the 50% employer share of the MD PFML contribution?"
Yes: Select Yes if your company has 15 or more total employees and uses the Maryland state plan. Go to Step 2.
No, I am exempt: Select No, I am exempt if your company has fewer than 15 employees or uses an approved private plan. Then select a Reason and choose an Effective Date (required):
Less than 15 employees: Patriot does not calculate the MD PFML employer share but still withholds the MD PFML employee share. Go to Step 2.
Approved Alternative: Your company uses a private plan (commercial or self-insured) approved by Maryland instead of the Maryland state plan. Patriot does not calculate the MD PFML employer share or employee share, and MD PFML does not appear on employee paystubs. No other Maryland PFML questions appear. Go to Step 4.
Maryland law has no full exemption from MD PFML. The two Maryland PFML exemption reasons only change how Patriot calculates MD PFML contributions. Maryland private plan changes take effect at the beginning of the next quarter.
Step 2: Choose whether to pay part of your employees' Maryland PFML contribution
The Maryland PFML question "Do you want to pay a portion of your employees' contribution?" appears after you select Yes or Less than 15 employees in Step 1.
No: Patriot withholds the full MD PFML employee share from employee paychecks. Go to Step 4.
Yes: Your company pays part or all of the MD PFML employee share.
The Maryland PFML Formula section appears after you answer Yes to paying a portion of your employees' contribution in Step 2.Enter the Employer Contribution percentage as a whole number (no decimals). Patriot calculates the Employee Contribution percentage for you.
If you pay the employer share: Enter a number from 50 to 100. For example, entering 75 means the employer pays 75% of the total MD PFML contribution and the employee pays 25%. Entering 100 means the employee pays nothing.
If you are exempt because you have fewer than 15 employees: Enter a number from 0 to 50. For example, entering 20 means the employer pays 20% of the total MD PFML contribution and the employee pays 30%.
To return the Maryland PFML employer contribution to the default percentage, click Reset. Patriot applies the Maryland PFML percentage you choose to all of your employees. Patriot does not support paying the MD PFML employee contribution for only some employees.
Step 3: Click Save.
Your saved Maryland PFML settings and their effective dates appear under Setting History on the Maryland tab.
How to Change or Remove an Maryland PFML Exemption
To change your Maryland PFML settings later, such as removing an exemption when your company reaches 15 employees,
Go to Settings > Payroll Settings > Paid Family Medical Leave > Maryland,
Update your answers,
Choose an effective date
Click Save. The Setting History keeps every Maryland PFML entry, including past exempt and non-exempt settings.
About Employer pick-up: Taxability of employer-paid Maryland PFML contributions
Important: The IRS considers employer pick-ups as wages. Under IRS Revenue Ruling 2025-4, any amount an employer pays toward an employee's share of Maryland PFML is taxable wages to the employee and is subject to federal income tax.
An employer pick-up is any amount an employer pays toward the employee's share of MD PFML. Patriot automatically adds the Maryland PFML employer pick-up to the employee's taxable wages for:
Federal income tax
Social Security and Medicare, including Additional Medicare Tax
FUTA
Maryland state income tax, Maryland SUTA, and Maryland county (local) income tax
Example: An employee working in Maryland earns $1,000 in a pay period, and the employer chose to pay 75% of the MD PFML contribution.
The total MD PFML contribution is $9.00.
The employer pays $6.75 (the $4.50 employer share plus a $2.25 employer pick-up), and $2.25 is withheld from the employee's paycheck.
The $2.25 employer pick-up is added to the employee's taxable wages.
No Maryland PFML employer pick-up exists at the default 50/50 split, so the employee's taxable wages are not changed.
How to Exempt an Individual Employee from Maryland PFML
You can exempt a single employee from Maryland PFML. The MD PFML employee exemption is only available for employees whose work location is in Maryland.
Go to Employees > Employee List > {Employee name}
On the employee record go to Taxes > Advanced Tax Settings.
Find Maryland Paid Family and Medical Leave (MD PFML) and mark the employee exempt.
Choose an effective date. You can select a January 1 date or a Custom date.
Click Save.
Maryland PFML FAQs
When does Maryland PFML start withholding in Patriot?
Patriot starts calculating Maryland PFML on paychecks with a pay date of January 1, 2027, or later. Paychecks with 2026 pay dates do not include Maryland PFML.
Can I collect missed Maryland PFML employee contributions from a later paycheck?
Maryland PFML employee contributions generally cannot be deducted after the pay period ends. The one exception is when the employee did not earn enough wages to cover the MD PFML contribution (for example, a tipped employee). In that case, the employer has up to six pay periods to collect the missed Maryland PFML employee contribution.
Does the Gross-Up tool include Maryland PFML?
Yes, Patriot's Gross-Up (net-to-gross) tool includes Maryland PFML, the Maryland PFML wage base limit, and any MD PFML employer pick-up when calculating gross pay.