Insurance brokers across Massachusetts have an opportunity to increase their commissions and better serve Massachusetts business owners through the Massachusetts Paid Family Medical Leave Act.
By helping your customers privatize Massachusetts PFML before October 1, you can offer premium discounts plus defer fourth quarter premium payments until January 1, 2020.
Here’s what you need to know about the important October 1, 2020 deadline approaching for business owners who want to write privatized paid family medical leave in Massachusetts.
1. Massachusetts business owners can only defer taxes on state-run PFML in MA through October 1, 2020.
Business owners must pay PFML premiums on policies written by the Commonwealth of Massachusetts by October 1, 2020. As we still battle the pandemic, many business owners continue to struggle with revenue, paying rent, or even making payroll. Some companies remain closed or at half-capacity right now. If there was ever a time to defer a mandatory expense, it’s now.
If your customers privatize Massachusetts PFML now, they don’t have to deduct payroll taxes for MA PFML premiums for 2020 until January 1, 2021.
Combined with the Paycheck Protection Program portion of the CARES Act, which permits business owners to defer the deposit and payment of the employer’s portion of Social Security taxes through December 31, 2020, this deferment can help free up cash for Massachusetts business owners at a time they need it most.
2. DBL Center brokers can save Massachusetts business owners money on PFML premiums if they privatize before October 1, 2020.
With no signature requirements or red tape, applying for a private plan exemption in Massachusetts is easy. As a broker, you can:
Help your customers apply for the exemption
Save business owners money on premiums
Show your customers how to defer payroll deductions and premium payments through January 1, 2021
But only if you act now. After January 1, 2021, brokers can still write a private plan with faster, more flexible payments and better service. But premium rates will be the same as the state plan.
As Kelvin Joseph of Kool Kel Marketing stated in a recent interview, “Right now, businesses are looking to increase their revenue and reduce their expenses. [DBL Center] has a way to save people money.”
As a DBL Center broker, you can take advantage of our industry knowledge, connections, and relationships with top-rated carriers to save your customers money while providing superior service with DBL Center as your back-office staff.
3. Private plans, by law, must provide benefits equal to or greater than those required by the Massachusetts Paid Family and Medical Leave Act.
As in New York and New Jersey, Paid Family and Medical Leave plans in Massachusetts must provide benefits equal to or better than the state plan. If you could get the same (or better) product at the same (or lower) price, wouldn’t you?
It makes switching to a private plan a no-brainer, especially with The DBL Center here to help your customers get the lowest premiums available.
4. PFML benefits in MA begin January 1, 2021, with additional benefits to go into effect July 1, 2021.
As of January 1, 2021, Massachusetts will join New York to offer paid family leave benefits for employees to care for:
A new infant, adoption, or foster child
Family members if a spouse is deployed
A family member with a serious health condition who is also a covered member of the military services
Beginnning July 1, 2021, PFML in MA will also cover time off to care for any family member with a serious health condition.
5. When your customers privatize PFML, you gain access to The DBL Center’s exclusive technology and service to help you track renewals, cancellations, and commissions.
For brokers across the New England region, working with The DBL Center offers many advantages to help you provide outstanding service to your customers as they navigate the confusing terrain of the Massachusetts Paid Family and Medical Leave Act.
We act as your back office staff to manage policies, collect premiums, and even track down late payments for you.
Our Broker Dashboard: Net Revenue Tracker provides all the information you need to manage your business, giving you access to renewals, cancellations, and commissions at a glance.
Massachusetts business owners may not want to think about another mandatory expense during the pandemic. They need brokers like you on their side to help them save money and receive the superior service they deserve. Reach out to The DBL Center today to help your customers privatize state mandated benefits under the Massachusetts Paid Family and Medical Leave Act.