Toast Payroll: Delaware and Maine Paid Family Medical Leave

In this Article:

• New Paid Family Medical Leave (PFML) in 2025
• Delaware PFML
  • Information You'll Need to Register
  • Delaware Setup Instructions
• Maine PFML
  • Maine Setup Instructions
• Additional Resources

New Paid Family Medical Leave (PMFL) in 2025

Effective January 1st, 2025, Delaware and Maine will both be launching paid family medical leave (PFML) programs. Per the Department of Labor, paid family medical leave refers to policies that enable workers to receive wage replacement when they take extended time off from work for qualifying reasons, such as bonding with a new child, recovering from their own serious health condition, or caring for a loved one with a serious health condition.

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Delaware PFML

Registration with the state setup up your PFML account, identified by an Employer Identification Number (EIN). This number enables Toast Payroll to file electronically on your behalf. Failure to provide this information risks Toast Payroll's ability to remit/file on your behalf which may result in financial penalties for your company.

Employers with 10 or more Delaware employees are required to contribute to the PFML fund. The required contributions and coverage depend on the number of employees:

• Employers with 10 to 24 employees must offer paid Parental Leave and contribute at a rate of 0.32%.
• Employers with 25 or more employees must offer full coverage, including Parental Leave (0.32%), Family Leave (0.08%), and Medical Leave (0.4%), for a total contribution of 0.8%.

Note: You may be exempt from contributing if you:

• Are an employer that pays fewer than 10 Delaware employees in a quarter
• Operate a season business that shuts down for one month or more, or
• Exclusively employ federal government employees

If you believe you are exempt and wish to voluntarily opt-out, contact  to report your status.

Information You'll Need to Register

Registration for Delaware's Paid Family Medical Leave withholding account is done via the . Before beginning, however, see the for a full list of requested items during registration. To register for the PFML withholding, a customer will generally need to provide:

• Legal business name and DBA
• Federal Employer Identification Number (FEIN)
• Physical and mailing address of your business
• Additional business location addresses in Delaware (if applicable)
• Business type (corporation, sole proprietor, LLC)
• State and date of incorporation (if applicable)
• Primary business activity performed
• Owner/officer name(s), Social Security number(s), date(s) of birth, and personal address(es)

Delaware Setup Instructions

1. To create a PFML tax account, open the .
2. Select Sign Up and enter all required information.
   1. For the Account Purpose setting, select For My Business.
3. After creating your account, the dashboard will display several tiles for different actions. If you see the Identity Proofing tile, you must select it first and complete the verification process, which takes about 15 minutes to confirm via email.
   
    
   
   
4. Once your identity is confirmed as "clear," you can then select the DOL Labor First Employer tile to begin your employer registration application.
   
    
   
   
5. Fill out the employer registration application with the business info listed above to receive an account number.
6. Once you've received your account number, follow the steps in to enter the number on your Toast Payroll Tax Accounts page.

Note: Per the program, employers may pass up to 50% of their contribution to employees. By default, Toast Payroll splits the cost as such between employers and employees. If you require any adjustments to your current PFML payroll settings, reach out to .

Maine PFML

Starting January 1, 2025, Maine is launching a , affecting employers based on their employee count.

• Businesses with fewer than 15 employees have a 0.5% premium, which can be fully deducted from employee wages.
• Businesses with 15 or more employees will have a 1.0% premium which can be split between the employer and employee, with a maximum of 0.5% being deducted from employee wages.
• For employers using the public plan, their employee count determination can be made by using the guidelines on Maine’s .

Payroll contributions will begin in 2025 and the paid leave benefits from the state will be available starting in 2026. Toast Payroll will calculate, withhold, collect, and file the paid family leave contributions for both employers and employees, following standard end-of-quarter reporting.

Maine Setup Instructions

• Before the end of Q1 2025, employers must register for Paid Family Leave with the .
  • Note: These instructions may change as the state has not yet completed the website. Employers should monitor Maine's website and communications in order to set up accordingly.
• From the linked website, navigate to Taxes > Edit state tax accounts.
• Scroll to the ME Paid Family Leave tile.
• Select the ... overflow menu.
• Select Edit.
• Insert information and Save.
• Employers should:
  • Notify employees about this new payroll withholding which will appear on their payroll summaries and paystubs.
  • Provide Toast with exemption status (yes or no). If yes, provide the level of exemption.
    • Determined by customer based on state guidance and calculations, not Toast.
  • Provide Toast with their PFML account number to begin collecting to file in Q1.

Note: By default, Toast Payroll will split a 1% premium evenly between employers and employees. If your company qualifies for the lesser premium OR if your company would like to cover the full premium on behalf of employees, contact .

Additional Resources

• (external link)
• (external link)

This content is for informational purposes and is not intended as legal, tax, HR, or any other professional advice. Please contact an attorney or other professional for advice specific to your circumstances.