Year-end is quickly approaching! We wanted to provide some reminders:
Tax Alert has been sent out to impacted employers based on having the active MD SUI tax code on the account. If you have not received this Tax Alert and believe you should have please reach out to your Account Manager.
Contributions will begin January 1, 2027, with benefits to begin January 1, 2028.
Employers can begin registration through the agency portal in Fall of 2026. Employers with at least one employee in Maryland are required to register. When you register, you’ll enter your federal Employer Identification Number (EIN). All sub-agencies and divisions with the same EIN will be registered together. FAMLI allows only one registration per EIN. After registration, you can grant access to a Third-Party Agent (TPA) so they can interact with FAMLI on your behalf. Only an Authorized Officer can sign the Power of Attorney to grant this access. Registered employers will automatically be enrolled in the State Plan.
If an employer is using a private plan, it will need to be authorized by the agency. Employers with a private plan will still be required to submit wage and hour reports and claims data every quarter. You’ll also be required to keep the following records for at least 5 years:
Employers are required to notify their employees of this tax throughout their employment. Employers need to provide notice to employees beginning in July 2027, six months before benefits become available, when an employee is hired, once per year on annual notice, when an employee requests leave, or when the employer knows the employee is taking leave for a qualifying reason. The FAMLI agency will create sample notices for employers to use.
MD FAMLI will be funded through contributions from both employers and employees. Contribution amounts vary based on employer size. The contribution rate is 0.9%, split equally between employers and employees (0.45% each). This rate will apply to wages paid from January 1, 2027 through December 31, 2027. Wages will be capped following the Social Security wage cap for each employee.
The FAMLI Division will determine employer size based on the total number of employees, including those working inside and outside of Maryland. All employees falling under the same federal Employer Identification Number (EIN) are counted toward a single employer size. Independent contractors will not count toward employer size. Even employers with just one employee in Maryland must comply with FAMLI requirements.
2027 Cost-of-Living Adjustment (COLA) Fact Sheet | News | SSA
2026 W-2 will have qualified tip reporting. We have imported as many Treasury Tipped Occupational Codes (TTOC) as we were able to based on cost centers and positions assigned in ReadyPay, however, employers are still required to review and confirm accuracy of the codes assigned. We have built in a tracker that will track and calculate tips per payroll. The Account Managers will be doing a weekly audit to review the output of the tracker to identify and review any ineligible entries within the payroll. If a tipped wage comes back as ‘ineligible’ this will need to be reviewed and updated as needed. An example of this would be an occupation/position title of General Manager had tips assigned. Per the IRS this is not a qualified tip occupation for the purposes of the allowed deduction. This entry would need to be reviewed to ensure if the position worked at the time of the received tip was truly functioning as the General Manager.
Your account manager was provided with a spreadsheet output of the tracker to review the occupation titles and codes assigned to the employees and cost center assignments. This spreadsheet will identify any missing codes, ineligible codes, managers receiving tips that are ineligible per IRS standards etc. Employers will need to review this information and make a decision on the correct title when receiving tips and if there needs to be a change on the TTOC. Any positions listed as general or “staff” positions, will need to be reviewed and assigned a TTOC as we are not able to identify which code should be applied.
A sign-off will be required for each employer once the TTOCs are reviewed. You should have received notification about this from your Account Manager already. The deadline for review and sign off is 10/31/2026 to allow for accurate W-2 previews. There will then be a weekly audit on the tipped wages through payroll until the end of the year.
IRS Reference for TTOC: IRS TTOC List
Paid Family and Medical Leave
Colorado Paid Family Leave has confirmed the rate will decrease from 0.88% to 0.86% for the 2027 tax year. ProLiant will update the rate in our system prior to 1/01/2027 for the new year.
Connecticut has expanded pay transparency laws effective October 1st 2026. Under the new law, employers must include the wage or wage range and a general description of benefits in internal or public job postings. Employers must continue to provide employees with the wage range for their positions at the time of hire, upon change in position, and upon the employee's first request. Beginning Oct. 1, employers must also provide a general description of benefits at each of those points. For an unadvertised position, an employer must provide an applicant with the wage range and a general description of benefits upon request or before discussing or offering compensation, whichever occurs first.
Employers should review their job posting templates and disclosure procedures before Oct. 1. They should also confirm that wage ranges are set in good faith and prepare general descriptions of available benefits.
Paid Family and Medical Leave
September 30, 2026 WA Paid Leave will calculate your 2027 business size by averaging your employee headcount from your previous four quarterly wage reports. If calculations show that the business size has changed, the agency will send a letter in late October.
For the most accurate calculation, make sure you have submitted a report for every quarter (2025 Q3 and Q4, and 2026 Q1 and Q2). For each quarterly reporting period, including quarters where you had no payroll, your account should show a status of “Processed.”
The premium rate will be recalculated September 30th and released to employers in October.
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