January 2027 may seem like the starting line for Maryland’s Family and Medical Leave Insurance (FAMLI) program. For employers, the work starts now. Registration is open, the clock is running, and every plan and payroll decision you put off now becomes a scramble later. If you’re considering a private plan, that decision and the paperwork behind it must be locked in by November 15.
Michelle Childers, HR Solutions Manager at SC&H, says some employers may not realize “it’s actually go time.” After several delays, they may assume they have until January to prepare.
Here’s what Maryland employers need to do before contributions begin.
What are Maryland employers required to do under FAMLI?
Maryland FAMLI is a state-run paid family and medical leave program funded through payroll contributions. Starting in January 2028, eligible employees can receive up to 12 weeks of paid, job-protected leave, with benefits of up to $1,000 per week.
If you have at least one employee working in Maryland, you must register with FAMLI, regardless of your business’s size. Registration enrolls you in the State Plan, but you can apply to use a private plan instead.
Registration is only the first step. Employers must report employee wages and hours every quarter, handle contributions according to their plan, and provide required employee notices. Once benefits begin, they must also manage FAMLI leave, continue employees’ health benefits during leave, and return them to the same or an equivalent position afterward.
Your fall 2026 FAMLI checklist
Below is a detailed explanation of the decisions, deadlines, and setup work behind FAMLI requirements.
For a quick reference, download the checklist here.
1. Register your business
Register with FAMLI once per EIN. An authorized officer, such as an owner or executive with legal authority to act for the business, must complete the registration. Your payroll provider, CPA, or benefits administrator can guide you, but cannot register on your behalf.
Before you start, gather:
- Your employer identification number (EIN)
- Your legal business name and d/b/a name, if you use one
- Your NAICS code
- Your physical and mailing addresses
- A business email address that’s different from the authorized officer’s email
Check that your Maryland resident agent’s name, physical address, email, and phone number are current. The authorized officer will also need to create a FAMLI account and verify their identity with Login.gov, using a Social Security number and a driver’s license or state ID.
Michelle recommends setting aside uninterrupted time to complete registration. After the business is registered, an authorized officer can sign a Power of Attorney in response to a TPA’s invitation. This lets the TPA handle approved tasks, such as submitting quarterly wage and hour reports, remitting contributions, and responding to claims. You can also sign up for Maryland FAMLI email updates to hear about program deadlines and resources, including when sample employee notices are available.
2. Decide whether to pursue a private plan
Registering with FAMLI automatically enrolls your business in the State Plan. If you plan to stay in the State Plan, you don’t need to file a Declaration of Intent (DOI).
If you intend to apply for a private plan in 2027 and want to avoid remitting contributions to the state during the 2027 seeding period, your authorized officer must submit a DOI through FAMLI between September 1 and November 15, 2026. To file it, upload a Proof of Private Plan Consultation completed and signed by a licensed insurance agent or another representative of an insurance company in Maryland.
If you submit a DOI, you must apply for a private plan by October 1, 2027. If the DOI is accepted, you must hold all 2027 contributions due in an escrow account. You can collect contributions from employees or fund the account yourself. Some governmental employers are exempt from this escrow requirement. If your private-plan application is denied or you choose the State Plan, the escrowed funds are owed to the state.
3. Budget for contributions and decide who pays the employee share
The 2027 State Plan contribution rate is 0.9% of wages, up to the Social Security wage cap. For employers with 15 or more employees, the contribution is split equally: the employer pays 0.45%, and the employer may withhold up to 0.45% from employees’ paychecks. Employers can cover some or all of the employee share as well.
Employers with fewer than 15 total employees, counting employees inside and outside Maryland, owe only 50% of the total contribution rate, or 0.45%. They may withhold that amount from employees’ paychecks or cover some or all of it themselves.
Maryland will calculate employer size each quarter in 2027, based on quarterly wage and hour reports. Starting in 2028, it will average employee counts across the previous four quarters to determine whether an employer qualifies for the lower contribution amount for the following year.
Michelle says employers are making different choices here based on their budgets and benefits philosophy, there’s no single right answer. Decide whether to cover the employee share in full as the employer, or split the cost with employees according to the statutory rate, before setting up payroll deductions or telling employees what to expect.
Confirm your payroll provider can calculate FAMLI contributions on wages paid beginning January 1, 2027, and process any employee deductions during regular pay cycles. Employers generally can’t deduct contributions after the pay period ends. If an employee’s paycheck is too small to cover the full deduction, you have up to six pay periods to collect the balance.
Ask whether your payroll provider will also submit quarterly wage and hour reports and, if you’re remitting to the State Plan, contribution payments. Michelle points out that a payroll system may handle deductions without submitting the reports. Assign someone to handle any tasks your provider doesn’t cover. If your Declaration of Intent is accepted, assign someone to manage the 2027 escrow contributions.
All employers, including those with private plans, must submit quarterly wage and hour reports. The first report, covering January through March 2027, is due April 30. State Plan contributions are due the same day for employers remitting to the state. Employers with approved private plans must also submit quarterly claims data.
4. Prepare notices, policies, and leave coverage
If you’ll withhold employee contributions, give employees notice at least one pay period before deductions begin. Explain what the deduction is, why contributions start in 2027 when benefits begin in 2028, and that employees cannot opt out.
Starting in July 2027, employers must also give notice about FAMLI leave and benefits. Provide notice at hire, annually, 30 days before changes to your FAMLI procedures or plan, and when you know an employee’s leave or leave request may qualify for FAMLI. Watch for Maryland’s notices as you prepare your communications.
Review how FAMLI will work alongside FMLA, PTO, short-term disability, and parental leave, then update your handbook and leave procedures. You cannot require employees to use accrued PTO before taking (or during) FAMLI leave. You and an employee can agree to use it to top off their FAMLI benefit. Leave specifically provided for a FAMLI purpose, such as qualifying parental leave, has different rules and may be required to run at the same time.
Finally, build job protection and continued health benefits into your leave process, and plan how you’ll cover employees’ work during leave. As Michelle points out, a new hire may qualify based on hours worked in Maryland for a previous employer. Employees need 680 hours of Maryland-localized work in the four calendar quarters reported before they file a claim or begin leave, whichever comes first. Their start date with your company may not show how soon they could qualify.
Key FAMLI dates for 2027 and beyond
Once contributions begin, employers have several more dates to keep on the calendar:
| Date | What employers need to do |
|---|---|
| January 1, 2027 | Begin contributions on wages paid from this date. If you’re collecting the employee share, start payroll deductions. |
| April 30, 2027 | Submit the first quarterly wage and hour report. State Plan employers must also make their first contribution payment. |
| Starting July 2027 | Give employees the required notice about FAMLI leave and benefits. Notices are also required at other points, including when an employee is hired or requests qualifying leave. |
| January 2028 | Be ready for eligible employees to begin taking FAMLI leave. |
Preparing for FAMLI involves complex decisions about benefits, payroll, and leave policies. SC&H’s outsourced HR team can help you compare plan options, guide you through registration while your authorized officer completes it, prepare employee notices, and update leave policies. Its outsourced payroll team can help set up deductions and, as your authorized third-party agent, manage quarterly reporting and payments.
Michelle and her team already work with clients in states that have similar paid leave programs. For help with next steps or ongoing administration, schedule a conversation with SC&H’s HR team. SC&H’s FAMLI employer checklist can also help you track what needs to happen and when.
FAQs about Maryland FAMLI
Yes. Any employer with at least one employee working in Maryland must register, even if the business is based elsewhere. Employers with fewer than 15 total employees pay a lower State Plan contribution, but they still have FAMLI reporting requirements.
Contributions begin on wages paid January 1, 2027, while eligible employees can begin receiving benefits January 1, 2028. The year between those dates allows the program’s fund to grow before it starts paying claims.
The 2027 State Plan rate is 0.9% of wages up to the Social Security wage cap. Employers with 15 or more employees owe 0.45% and may withhold up to 0.45% from employees; employers with fewer than 15 total employees owe only the 0.45% they may withhold, though any employer can choose to cover the employee share.
Yes, but the plan must be approved by the FAMLI Division and provide benefits and service at least equal to the State Plan. Employers seeking to avoid remitting 2027 contributions to the state while applying for a private plan must submit a Declaration of Intent by November 15, 2026, and, if accepted, hold the required contributions in escrow.
Yes. Starting in 2028, an employee can qualify after working at least 680 hours in Maryland during the four reported calendar quarters before their claim or leave begins, whichever comes first. Hours worked for a previous Maryland employer count, so a recent hire may already meet the requirement.
SC&H’s outsourced HR team can help you compare plan options, prepare employee notices, and update leave policies. Its outsourced payroll team can set up deductions and, as an authorized third-party agent, handle quarterly reports and payments.
