Beginning on October 1, most employers in Massachusetts will be required to withhold tax to fund Massachusetts Paid Family and Medical Leave benefits. There is an exception to this requirement, however, for companies that receive a tax exemption from the state for a private plan providing the same or better benefits. Many employers have already chosen to apply for a tax exemption, after comparing the cost of the tax to the likely cost of implementing a private plan. Some companies are requesting exemptions from part or all of this tax because for them, it is cheaper to pay for the benefits directly or through short and long-term disability plans already in place. Others have chosen to obtain tax exemptions for 2019 and 2020 only, with the intention that they will join the state plan in 2021 and begin withholding taxes then. (Because benefits under the program are not payable until 2021, an employer with a two-year tax exemption reaps an immediate savings while shifting the risk of paying benefits to the state, beginning in 2021.) Still others want a tax exemption because their own program for paid leave is better than what the state generally offers, and they do … Keep reading