Maryland FAMLI: What Employers Should Evaluate Before the November 15 Deadline

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Maryland employers considering a private plan under the state’s Family and Medical Leave Insurance (FAMLI) program must file a Declaration of Intent (DOI) by November 15, 2026. The filing window opened September 1. Filing signals an intent to apply for a private plan in 2027 and lets the employer hold contributions in escrow instead of sending them to the State. It does not commit the employer to a private plan, and it is not an approved plan.

The decision involves more than choosing between the State Plan and a private-plan alternative. Employers should consider the financial impact, administrative requirements, existing leave and benefit programs, payroll readiness and the experience they want to create for employees and managers.

The November deadline is therefore more than an administrative milestone. It is a useful decision point for employers to assess their options and begin preparing the people, policies and processes that will support FAMLI implementation.

Maryland FAMLI Deadlines and Key Dates for Employers

Date	Milestone
September 1, 2026	DOI submission and employer registration window opens. Any employer with at least one Maryland employee must register; a sole owner-employee is not considered an employer.
November 15, 2026	Deadline to file a Declaration of Intent for employers that intend to apply for a private plan in 2027.
January 1, 2027	Contributions begin. The total rate is 0.9% of wages up to the Social Security cap. Employers may withhold up to half (0.45%) from employees and may choose to pay the employee share.
April 30, 2027	First quarterly remittance and wage and hour report due, covering January through March 2027. Later due dates are July 31, October 31 and January 31.
July 2027	Employee notice of paid family and medical leave due, six months before benefits become available.
October 1, 2027	Deadline for employers that filed a DOI to apply for a private plan.
January 2028	FAMLI benefits become available.

Employers with fewer than 15 employees, counting out-of-state staff, remit only 50% of the contribution rate. The total rate cannot exceed 1.2% under current law.

For employers considering a private plan, beginning the evaluation before the November deadline can provide more time to understand the alternatives, coordinate internal stakeholders and identify implementation requirements.

Four Questions Maryland Employers Should Address Now

Choosing between the State Plan and a private plan is important, but it is only one part of FAMLI readiness. Employers should consider four interconnected questions.

1. Which FAMLI approach best fits the organization?

Employers can choose the State Plan, a commercial (insured) plan or a self-insured plan. A commercial plan is sold by an insurer, which reviews and pays claims. Any employer can buy one. A self-insured plan is financed and administered by the employer. It is open to employers with 50 or more employees, and to smaller employers only if they already had a FAMLI-compliant plan in place by a deadline that has now passed.

Either type of private plan must be approved by FAMLI, must provide benefits equal to or better than the State Plan, and must cover all employees. A self-insured applicant must also show proof of solvency, such as a surety bond, and keep a separate account used only for FAMLI contributions and benefits. Application fees range from $100 to $1,000 a year for commercial plans, based on employer size, and are $1,000 for self-insured plans. Employers must stay in a private plan for at least one year before changing.

Filing a DOI is not the same as establishing an approved private plan. After the DOI, the employer must still apply, and FAMLI must approve the plan. Employers that file a DOI must apply by October 1, 2027, or face penalties and fees. Employers should also weigh the cost of changing course: choosing the State Plan after a DOI means owing the escrowed contributions to the State, and switching from a private plan later can mean owing contributions back to January 1, 2027, plus interest.

2. What are the financial implications of Maryland FAMLI?

The State Plan rate is 0.9% of wages up to the Social Security cap for 2027, split equally between employers and employees (0.45% each). Employers may withhold up to half from employees and may choose to pay the employee share, which may have tax implications. Employers with fewer than 15 employees remit only 50% of the rate.

Private plans change the comparison in specific ways. Employees cannot be charged more than they would pay under the State Plan, and no more than 50% of the State Plan rate can be withheld from them. A private plan may charge the employer a higher rate, but that cost cannot be passed to employees. Employers should compare plan pricing, application fees, employer size effects and their approach to paying the employee share.

For employers that file a DOI, contributions collected from employees in 2027 are held in escrow. If a commercial plan is approved, the collected employee contributions are returned to employees. If a self-insured plan is approved, the funds can move to a separate FAMLI account.

A thoughtful financial analysis can help employers evaluate the alternatives in the context of their broader benefits strategy rather than viewing FAMLI as a stand-alone compliance requirement.

3. Are payroll and administrative processes ready for FAMLI?

Whichever approach an employer selects, implementation may require changes to payroll systems, leave administration procedures and other internal processes. Maryland has specific requirements to plan for:

Contributions are based on gross wages as defined in the state unemployment insurance law, and the Social Security cap applies separately to each job.
Deductions are taken when wages are paid. If pay is too low to cover the contribution, the employer has up to six pay periods to collect it.
Employers must give employees notice one pay period before deductions begin, at hire, annually, and starting in July 2027.
All employers, including those with private plans, file quarterly wage and hour reports and remit electronically through the FAMLI website. Private-plan employers also send quarterly claims data.
Private-plan employers must keep records for at least five years, including applications, benefits paid, wage reports and employee contributions.
Employers have five business days to respond to a claim notice.
Employers that need help can give a third-party administrator power of attorney, but only after the employer itself registers.

Questions to consider include who will be responsible for FAMLI administration, how leave requests will move between employees, managers, HR, payroll and any third-party providers, and what testing should be completed before contributions begin.

Answering these questions early can reduce the risk of fragmented processes and inconsistent leave administration later.

4. How will FAMLI fit with existing leave and benefit programs?

FAMLI will not operate in isolation. Employers should review how it interacts with the Family and Medical Leave Act (FMLA), paid time off, disability benefits and other employer-sponsored programs.

Employers should also determine whether handbooks, leave policies, notices and other employee-facing materials need to be updated.

Managers are another important part of the process. They may be the first people employees approach with questions about leave, so they need to understand where to direct requests and how to respond consistently without making eligibility or benefits determinations outside their role.

Five Questions to Ask Before Choosing a FAMLI Approach

Before making a FAMLI decision, employers should be able to answer:

What will each available approach potentially cost our organization?
How will each option work with our existing benefits and leave programs?
What payroll, HR and administrative changes will each require?
What will employees and managers experience when someone needs leave?
What must we complete, and by when, to implement our preferred approach?

The goal is not simply to meet a deadline. It is to select an approach the organization can administer effectively.

How Frazier & Deeter Can Help

Preparing for Maryland FAMLI requires coordination across HR, payroll, benefits and organizational leadership. Frazier & Deeter’s Human Resources Consulting team can help employers turn FAMLI requirements into a practical implementation plan by:

comparing State Plan and private-plan considerations;
assessing potential workforce and cost implications;
identifying payroll and administrative process changes;
reviewing leave policies and employee handbooks for needed updates;
developing employee and manager communications; and
establishing processes to support more consistent leave administration.

Addressing these issues together can give employers a clearer view of the decision ahead and the operational work required after that decision is made.

Maryland FAMLI: From Plan Decision to Implementation

For employers considering a private plan, November 15 represents an important decision point. Waiting until the deadline approaches may leave less time to evaluate alternatives, involve HR, payroll and benefits stakeholders, and prepare for implementation.

The better question is not simply, “What do we have to file by November 15?” It is, “Which approach makes sense for our organization, and what will it take to implement it successfully?”

Considering a private plan? Frazier & Deeter’s Human Resources Consulting team can help you evaluate the State Plan and private-plan alternatives, identify financial and operational considerations, and develop a roadmap for implementation. Contact our team to discuss your organization’s approach before the November 15 deadline.

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