Background

Paid Family and Medical Leave (PFML) contributions for Delaware employees will begin for payrolls with a 2025 pay date. Tax collections for full-service customers will commence soon.

Delaware employers may be required to provide up to three types of Paid Family and Medical Leave:

• Parental Leave
• Medical Leave
• Family Caregiver/Qualified Exigency (QE) Leave

Employers can set up an account using Delaware LaborFirst. Once registered:

• Required employers are automatically enrolled.
• Smaller employers may opt-in voluntarily.
• Larger employers can apply to provide a private plan instead.

Delaware PFML mandates the reporting of all employee hours, including salaried employees.

Employer contribution requirements

Contributions to Delaware PFML start in January 2025. Participation is mandatory for most businesses with 10 or more employees working in Delaware. Below is a breakdown of employer obligations:

Beginning January 1, 2025, the employer must remit payroll contributions to the state at least quarterly to fund the program. 

Contribution Split

Employers may not deduct more than 50% of the total contributions owed from employees and may elect to pay all or any portion of the employee’s share of contributions.  Employers can require employees to pay up to 0.4% of covered wages (or 0.16%, if the employer is only mandated to provide Parental Leave).

Create/Edit Delaware PFML Employer Expense and Employee Deduction

Go to Payroll > Payroll Categories > Expenses

• If the PFML - DE Employer Expense already exists, click Edit, otherwise, click New to create a new employer Expense.  If new, provide a name, ie, PFML - DE, select type PFML, and enter DE for the State Code.
• The 2025 Wage Limit is $176,100.00.
• Enter the appropriate PFML Rate based on the number of employees you have.  (0.0% for 9 or fewer employees, 0.32% for 10 to 24 employees, and 0.8% for 25 or more employees)
• Click the Employee button to add PFML - DE to all Maine Employees.

Go to Payroll > Payroll Categories > Deductions

• If the PFML - DE Employee Deduction already exists, click Edit, otherwise, click New to create a new Employee Deduction.  If new, provide a name, ie, PFML - DE - Employee, select type PFML, and enter DE for the State Code.
• The 2025 maximum employee percent is 0.4% of Gross Wages (or 0.16%, if the employer is only mandated to provide Parental Leave).
• The 2025 Limit Amount is $704.40 per Year ($176,100 * 0.4%) or $281.76 ($176,100 * 0.16%) if the employer is only mandated to provide Parental Leave