MD FAMLI Rollout: The 11/15 Private Plan Deadline and What Maryland Employers Need to Know

Disclaimer: This material is provided for general informational and educational purposes only and does not constitute legal, tax, human resources, or other professional advice. The application and interpretation of laws, regulations, and workplace policies vary based on the specific facts, circumstances, industry requirements, and jurisdiction applicable to each employer and situation. Readers should not rely on this information as a substitute for professional guidance. Before taking any action based on this material, readers should consult with their human resources counsel, healthcare insurance provider, and legal counsel and other appropriate advisors to ensure compliance with applicable laws, regulations, and contractual obligations. Neither the author nor the provider of this material assumes any liability for actions taken or decisions made based on the information presented herein.

Summary

• Every employer with at least one Maryland employee must register for MD FAMLI.
• November 15, 2026 is the last day to file a Declaration of Intent (DOI) if you want to use a private plan and avoid paying into the State Plan during 2027.
• Payroll withholding starts in January 2027 at a total contribution rate of 0.90%. Your first quarterly payment is due April 30, 2027.
• Employers with fewer than 15 employees don’t pay the employer share. State Plan employers may withhold up to 50% of the contribution from employee pay.
• Benefits start in January 2028: up to 12 weeks of paid leave at a maximum of $1,000 per week.

What MD FAMLI Is and Why It Matters Now

Maryland’s Family and Medical Leave Insurance program, known as MD FAMLI, puts into effect the Time to Care Act, passed in 2022. The program gives workers partial pay while they take time off for major life events. Those events include bonding with a new child, dealing with their own serious health condition, caring for a family member, or handling certain military-related situations.

Starting in January 2028, eligible employees can take up to 12 weeks of job-protected paid leave. Benefits are capped at $1,000 per week. To qualify, an employee must have worked at least 680 hours in Maryland during the four calendar quarters before they file a claim or their leave begins.

Many employers see “2028” and assume they have plenty of time, but the work starts much earlier. The private plan deadline is November 15, 2026, and payroll withholding begins in January 2027, a year before anyone can collect a benefit.

Example: The owner of a 10-person landscaping company figures FAMLI is a 2028 problem. In reality, the company must register now and start withholding from paychecks in January 2027.

Common mistake: Confusing the date benefits start (2028) with the date your obligations start (2026 and 2027).

Key Dates at a Glance

Who Is Covered

The rule is simple: if you have at least one employee in Maryland, you must register. There are no exceptions for size or industry.

Registration is done by federal Employer Identification Number (EIN), and each EIN can be registered only once. If you have several divisions or locations that share one EIN, they’re registered together as one employer.

Coverage for your business is separate from eligibility for each employee. An individual worker qualifies for benefits based on the 680-hour Maryland work requirement described above.

Example: A Baltimore retailer with eight employees must register. Whether each employee can collect benefits in 2028 depends on how many hours they worked in Maryland.

Common mistakes:

• Assuming small businesses are exempt. The small-employer discount lowers your cost. It does not excuse you from registering.
• Trying to register each location separately when they all share one EIN.

Step 1: Register Your Business

Registration happens online at paidleave.maryland.gov. Only an Authorized Officer legally allowed to act for the business (such as an owner, executive, or designated officer) can complete the first registration.

The Authorized Officer has to verify their identity with a Social Security number and a driver’s license or state ID. They can create a new account with an email and phone number or use an existing Login.gov account.

You’ll also need to name a Maryland Resident Agent, the person or company that receives official legal documents for your business. Have the agent’s name, physical address, email, and phone number ready.

Once you register, your business is automatically enrolled in the State Plan. If you’d rather use a private plan, see Step 3.

Pre-Registration Checklist

Gather these items before you start:

• Federal EIN
• Legal business name and any “doing business as” (d/b/a) names
• NAICS industry code
• Physical and mailing addresses
• A business email address that differs from the Authorized Officer’s personal email
• The Authorized Officer’s SSN and driver’s license or state ID
• The Resident Agent’s contact information

Example: An HR manager starts the registration and gets stopped because they aren’t an Authorized Officer. The owner completes the registration and then invites the HR manager to join the account.

Common mistakes:

• Expecting your payroll provider to register for you. Third-party agents cannot register an employer.
• Using the same email for the business and the Authorized Officer.

Step 2: Set Up Team Roles and Your Payroll Provider

After registration, the first Authorized Officer can invite other people to the account. There are three roles:

• Authorized Officer: manages every part of the account, signs powers of attorney, and grants access to outside agents.
• Payments Reporting Manager: files the quarterly wage reports, sends contributions, and can see employee data.
• Administrator: adds and removes team members.

If an outside payroll company or other third-party agent will handle your filings, the Authorized Officer must first sign a power of attorney. After that, the agent can submit reports, send contributions, and respond to claims for you.

Your payroll system must be able to calculate, withhold, and report FAMLI contributions starting with the first payroll in January 2027. If you plan to file a DOI (Step 3), you’ll also need a way to hold the withheld money in escrow during 2027.

Example: A company that outsources payroll signs the power of attorney in December so its provider is ready to file the first quarterly report in April.

Common mistakes:

• Assuming your payroll vendor will turn on FAMLI withholding without being asked. Confirm it in writing.
• Giving only one person access to the account. If that person leaves or is out, nobody can file.

Step 3: State Plan or Private Plan: The November 15 Decision

This is the decision that drives the November 15 deadline.

The Default: The State Plan

Under the State Plan, the State of Maryland pays FAMLI benefits, and the plan is funded by quarterly contributions from employers and employees. Every registered employer stays on the State Plan unless it is approved to use a private plan. For many small businesses, the State Plan is the simplest choice.

The Alternative: A Private Plan

Instead of joining the State Plan, an employer can apply to use a private plan approved by the FAMLI Division. A private plan can be fully insured, meaning it’s bought from a commercial insurer, or self-insured, meaning the employer pays benefits itself. Either way, the plan must provide benefits and services at least as favorable as the State Plan’s.

Self-insured plans are generally limited to employers with 50 or more employees. A smaller employer can self-insure only if it already had a FAMLI-comparable plan in place as of July 31, 2026.

The Two-Step Process

Getting a private plan approved takes two separate filings:

1. Declaration of Intent (DOI): Due between September 1 and November 15, 2026. Filing a DOI is what lets you avoid paying contributions to the State during the 2027 “seeding period” (January 1 through December 31, 2027), the year the State builds up the fund before benefits start.
2. Private plan application: Applications open in summer 2027 and are due by October 1, 2027. An accepted DOI is not an approval. You still have to apply and be approved.

What Happens to the Money During 2027

Filing a DOI doesn’t mean you stop withholding. Employers with an accepted DOI must start withholding from employee pay on January 1, 2027, and hold those contributions in an escrow account. What happens to that money depends on the outcome:

• Approved self-insured plan: The escrowed money can fund a separate account used only for FAMLI benefits.
• Approved commercial (fully insured) plan: The escrowed money goes back to employees.
• Application denied, or you choose the State Plan instead: The escrowed money is owed to the State.

Once a private plan is approved, you don’t send contributions to the State.

Example: A 75-employee manufacturer already offers strong paid leave. It files a DOI in early November 2026, holds its 2027 withholdings in escrow, and submits its self-insured plan application before October 1, 2027. When the plan is approved, the escrowed money funds the company’s FAMLI benefit account.

Common mistakes:

• Missing November 15. An employer that doesn’t file a DOI pays into the State Plan for 2027.
• Treating an accepted DOI as approval. The full application is still required.
• Skipping withholding or spending escrowed money during 2027. Those funds may end up owed to the State or to employees.
• Assuming a company under 50 employees can self-insure without a comparable plan in place on July 31, 2026.
• Assuming your current insurance policy automatically qualifies. It has to meet the State Plan standard.

Step 4: Understand the Contribution Math

For 2027, the total FAMLI contribution rate is 0.90% of wages. Employers on the State Plan may withhold up to 50% of that from employee paychecks. The employer pays the rest.

Small employers get a break. Businesses with fewer than 15 employees don’t pay the employer share, and the State expects more than 80% of Maryland employers to qualify for this discount.

Contributions are paid quarterly. The first payment is due April 30, 2027.

Example: An employee earns $60,000 a year. At 0.90%, the total annual contribution is $540. If the employer withholds the maximum 50% from pay, the employee pays $270 and the employer pays $270. (For an employer with fewer than 15 employees, the employer share is waived.)

Common mistakes:

• Withholding more than 50% of the contribution from employees.
• Forgetting to budget for the employer share if you have 15 or more employees.

Step 5: Communicate with Your Employees

Employees will see a new deduction on their first paycheck of 2027. A short memo in December explaining what FAMLI is, why the deduction appears, and when benefits begin can prevent confusion and a flood of questions.

If you filed a DOI, explain that the withheld money is being held in escrow and what will happen to it depending on whether your private plan is approved. Give managers and HR a few simple talking points so everyone gives the same answer.

Example: A staff member asks why their January paycheck is smaller. Because the company sent a memo in December, the employee already knows it’s the new FAMLI contribution and that paid leave becomes available in 2028.

Common mistake: Telling employees they can use FAMLI benefits before January 2028.

Your Year-End Action Plan

1. Now: Confirm how many employees you have in Maryland and how your business is set up by EIN.
2. Now: Have an Authorized Officer register at paidleave.maryland.gov, with your Resident Agent details ready.
3. Now: Invite team members and, if needed, sign a power of attorney for your payroll provider.
4. By November 15, 2026: Decide between the State Plan and a private plan. If you’re pursuing a private plan, file your DOI.
5. December 2026: Set up and test the 0.90% withholding in payroll. DOI filers should also set up the escrow account.
6. December 2026: Send employees a memo about the new deduction.
7. April 30, 2027: Make your first quarterly contribution payment (State Plan employers).
8. Summer 2027 through October 1, 2027: DOI filers submit the private plan application.
9. Ongoing: If you have 15 or more employees, budget for the employer share.

Frequently Asked Questions

Do I have to register if I have only one Maryland employee? Yes. Every employer with at least one employee in Maryland must register.

What happens if I miss the November 15 DOI deadline? Your business stays on the State Plan and contributes to it during the 2027 seeding period.

If my DOI is accepted, is my private plan approved? No. The DOI is only the first step. You must still submit a full private plan application by October 1, 2027.

Can my payroll company register for me? No. An Authorized Officer must complete the registration. After a power of attorney is signed, your payroll company can handle reports and payments.

When can employees start taking paid leave, and who qualifies? Benefits begin in January 2028. Employees qualify if they worked at least 680 hours in Maryland during the four calendar quarters before they file a claim or their leave begins.

Who can I contact with questions? The FAMLI Customer Care Center can be reached at paid.leave@maryland.gov or 410-525-4010, and more information is at paidleave.maryland.gov. For questions about your specific business, talk with your legal counsel.