Fall planning? Remember the Maryland Time to Care Act

Fall planning is upon us and we want to make sure in addition to your thoughts around annual business strategies you are including the new Maryland HR regulation that will be impacting most organization’s next October.

WHAT IS IT?
On June 1, 2022 Maryland’s Time to Care Act of 2022 (TTCA) took effect. The law establishes an insurance program where Maryland employers and employees, as well as self-employed individuals, contribute to a fund with rates that are determined by the Maryland Department of Labor. The Act allows an employee to take 12 weeks of paid leave for any medical or family emergency. An employee may take an additional 12 weeks of paid leave in certain circumstances.

WHAT IS THE IMPLEMENTATION TIMELINE?
Fortunately, its provisions do not take effect all at once. Contributions from employees and employers (and self-employed individuals who participate in the program) are not required until fall of next year, Oct. 1, 2023. Covered individuals can submit claims for benefits beginning on Jan. 1, 2025.

HOW DOES THIS IMPACT ME?
Employers should be mindful of the following:

  • Employers with 15 or more employees will be required to contribute to the Fund.
  • Employees, employers, and self-employed individuals may begin contributing to the Fund as of October 1, 2023.
  • Beginning on January 1, 2025, employees taking leave under the Act will be paid a partial wage replacement based on a range of $50 to $1,000 per week. The pay scale will vary based on income with lower-income workers receiving the highest portion of their income, up to 90%.

Since the TTCA will be phased in incrementally over the next two years, employers should take time now to plan and prepare, become familiar with the TTCA’s benefits scheme, and project the potential additional costs that the TTCA will impose on them. Employers also may want to plan for the effect the TTCA may have on existing leave policies and bargaining agreements.

I WANT TO KNOW MORE:
To read more about this matter, we recommend reading the following SHRM article:

https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/marylands-employer-funded-paid-family-and-medical-leave-benefit-to-be-phased-in.aspx

HOW CAN KATZABOSCH HELP?
Our sister company, BlueStone Service’s outsourced HR team will be closely monitoring developments on this matter and are happy to discuss the program and process with you further. They are also ready to assist organizations with their development of existing leave policies and procedures from revising handbooks to providing HR compliance check-ups. To learn more about their services, please click here.

Your KatzAbosch representative can introduce you to the BlueStone Services Outsource HR team leader, Karen Warthen for a deeper conversation on how they may help you. They can also support you with forecasting the potential additional costs that the TTCA may impose on your organization’s bottom line and help you prepare for them in advance. If you are not a current KatzAbosch client and would like to receive support on this matter for your organization, please call 410.828.2727 or contact us.

Related Resources

WEBINAR: How to Streamline Adopting ASC 842

Managing the new lease standard? We’re here to tell you what you need to know. ASC 842 substantially alters how companies account for leases in their GAAP basis financial statements. This webinar will prepare you for the financial reporting challenges that the new guidance will impose on all GAAP basis financial statement preparers.

Read More

News, Tips & Insights Sign-Up to Receive Updates

Enter your email address to subscribe to our digest of accounting and firm news.

  • This field is for validation purposes and should be left unchanged.