Key Takeaways
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Employers have new Maryland Family and Medical Leave Insurance (FAMLI) requirements to address before payroll contributions begin in January 2027, including registration, payroll withholding, and plan selection. While employee benefits begin January 1, 2028, employer and employee contributions begin January 1, 2027.
What employers should prepare for
Employers can participate in Maryland's state-administered FAMLI insurance plan (State Plan) or seek approval to provide equivalent benefits through a private plan.
For 2027, the State Plan contribution rate is 0.9% of covered wages up to the Social Security wage cap.
Employers with 15 or more employees generally pay 0.45% and may withhold up to 0.45% of employees’ wages.
Employers with fewer than 15 employees generally are not required to pay an employer share but remain responsible for remitting applicable contributions, including any employee contributions withheld, up to 0.45%.
Employers with at least one employee working in Maryland must register for FAMLI, regardless of whether they use the State Plan or an approved private plan. Quarterly wage-and-hour reporting begins in April 2027 for all covered employers. State Plan participants must make their first quarterly contribution payment by April 30, 2027.
Employers seeking a private plan in 2027 and exemption from remitting State Plan contributions during the initial funding period must submit a Declaration of Intent by November 15, 2026. Employers with an accepted declaration generally must hold the required contributions in escrow while pursuing private-plan approval, or they agree to fully fund the escrow account on behalf of the employees.
Employers should confirm their FAMLI registration, review payroll withholding procedures, and evaluate whether to participate in the State Plan or pursue a private plan before November 15, 2026. After November 15, the declaration of intent (DOI) window will close, and employers that miss this deadline must remit contributions to the state for the entire 2027 calendar year.
Planning Ahead for 2027 Compliance
Employers should use the time leading up to November 15, 2026, to evaluate their FAMLI plan options, confirm registration requirements, and prepare payroll processes for the 2027 contribution and reporting deadlines. Employers considering a private plan should review the declaration of intent requirements and associated funding obligations before the deadline.
Taking these steps now can help employers avoid missed deadlines and support a smoother transition to the new requirements. For guidance on how Maryland’s FAMLI requirements may affect your organization, contact our team.
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