Maryland’s Time to Care Act, which establishes the Family and Medical Leave Insurance (FAMLI) program, provides Maryland employees with up to 12 weeks of paid leave (up to $1000 per week depending on salary level) for qualifying events such as childbirth or adoption or medical needs such as medical treatment and rehabilitation. Employees who work in Maryland but reside out-of-state are eligible for the program and are subject to required withholding.

ALL EMPLOYERS IN MARYLAND WITH AT LEAST ONE W-2 EMPLOYEE MUST REGISTER AND PAY THE MANDATORY CONTRIBUTIONS, PART OR ALL WHICH CAN BE WITHHELD FROM THE EMPLOYEE’S PAY MUCH LIKE FICA. CHURCHES AND MINISTERS ARE NOT EXEMPT.

This program has come as a surprise to many churches and there is more than a bit of confusion about it though it is actually a pretty straightforward insurance program that will benefit many. All churches with fewer than 15 employees will be required to pay an amount equal to 0.45% from employees’ paychecks and pay those into the program on a quarterly basis. This will be through a payroll deduction. Key dates and provisions are included below. (Churches with 15 or more employees must contribute an equal amount. See below)

What you should do NOW

1. Pass this information to your church administrator or treasurer or whoever handles payroll.
2. Identify the “authorized officer” (probably your treasurer) who will complete the registration. Have them go to the program website asap: and follow the employer instructions. https://paidleave.maryland.gov/
3. Information about free WEBINARS on the program and on the registration process can be found at https://paidleave.maryland.gov/events
4. Remember that ministers are not exempt and churches must withhold the mandatory contribution from the pastors’ paycheck based on both salary and housing. Do not include the value of a manse. Ministers are also eligible to receive benefits under the program.
5. If your church uses a payroll system contact them about how they will manage this once you have registered. A payroll company cannot register for you.
6. Employees who live out of state must also participate in the program if they work in Maryland. They are also eligible for the Maryland benefit.

I will be going over this program at the beginning of all clerks’ record reviews this fall as well as the online session on Oct. 20. At the on-line session Rommel B. Loria, an attorney from Gallagher LLC, will be with us to address specific questions. Treasurers are welcome to attend. Register Here.

We will send additional information that may be helpful as it becomes available but the best thing you can do now is get this to the right people in your church and have them go to the website. All will be well!

Program Timeline & Key Dates

• January 1, 2027: Mandatory employer and employee payroll contributions and deductions officially begin.
• January 2028: Benefit payouts and job-protected leave become fully available to eligible workers.

Contribution Rates & Funding

• Total Contribution Rate: Set at 0.9% of an employee’s wages (up to the Social Security wage cap).
• For Employers with Fewer than 15 Employees: The required contribution is 0.45%, which can be fully deducted from employee wages (though small employers are not mandated to pay the employer share, employees still contribute).
• For Employers with 15+ Employees: The 0.9% cost is typically split evenly—employers pay 0.45% and deduct up to 0.45% from employee paychecks.