Maryland: Paid leave contributions start January 1, 2027

Maryland FAMLI contributions start January 1, 2027: 0.9% of wages up to the Social Security wage cap in total, of which employees can be charged at most

RJ Ryan Joyce 2 min read

Compliance Watch · Issue 04

Status: Effective Jan 1, 2027

Jurisdiction: Maryland · Topic: Paid leave

Source: Maryland Department of Labor

Back to the issue: all 7 updates in Issue 04

What changed

Maryland FAMLI contributions start January 1, 2027: 0.9% of wages up to the Social Security wage cap in total, of which employees can be charged at most 0.45%. Employers with fewer than 15 employees owe no employer share. Employer registration is open, and the first payment is due April 30, 2027.

The math

0.45%employee half, which employers may withhold from pay
+ 0.45%employer half, not owed by employers with fewer than 15 employees (all states)
0.9%of wages up to the Social Security wage cap

Who this affects

Employers with at least one employee working in Maryland. For the 15-employee line, Maryland counts every employee under the same federal EIN, in Maryland and in every other state.

Exceptions that matter:

  • Employers with fewer than 15 employees, counted in all states, owe only the employee half (0.45%), which they may withhold from pay.

What to do

Register for FAMLI (one registration per EIN), set up the 0.45% employee deduction (or cover it yourself) before your first January 2027 pay date, and notify employees one pay period before January 1, 2027, even if you cover their share.

Employer checklist

1
Register for FAMLI (one registration per EIN) before your first January 2027 pay date.
2
Count all employees under your EIN, in every state, to see whether you owe the employer half.
3
Set up the 0.45% employee deduction (or decide to cover it), and give employees the required notice one pay period before January 1, 2027, even if you cover their share.
4
Put the first payment, due April 30, 2027, on the calendar.

Primary source: Maryland Department of Labor. Part of Compliance Watch, Issue 04 (November 2, 2026). Last reviewed November 2, 2026.

Questions employers ask

When does this take effect?
It takes effect January 1, 2027. Until then the current rules apply. Maryland employers should check the official notice for the exact scope: Maryland Department of Labor.
Where is the official source?
The primary source is Maryland Department of Labor. VertiSource HR links the government page rather than a summary of it.

Questions about this update?

Every “What to do” line above is a task for someone at your company. Our clients hand the payroll and tax pieces to us and get an HR advisor for the rest.

Ask about rules in your state All 7 updates in Issue 04

General information from VertiSource HR, not legal or tax advice. How a rule applies depends on your company and your state. Check with us or your attorney before acting.

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