Maryland FAMLI: You Have to Register Now, Even Though Benefits Start in 2028
By Joshua Lavine, CEO and Company Culture Expert, Capitol Benefits · Last updated October 22, 2026
Key takeaways
- If you have even one employee in Maryland, you are required to register for FAMLI. Registration is open now and there are no exceptions under state law.
- If you might want a private plan instead of the state plan, you must file a Declaration of Intent by November 15, 2026, and it needs a consultation form signed by a licensed Maryland insurance producer.
- Payroll deductions begin January 2027. The first quarterly report and payment are due April 2027. Benefits do not start until January 2028.
- The initial contribution rate is 0.9% of wages up to the Social Security cap, split evenly at 0.45% employer and 0.45% employee.
- Your payroll company cannot register for you. Third party agents can take over the quarterly work afterward, but the employer has to create the account.
- Employer size counts every employee under your EIN, including those outside Maryland. Ten staff in Gaithersburg and eight in Virginia makes you an eighteen employee company, not a small employer.
If you have even one employee in Maryland you are required to register for FAMLI now, and if you want to use a private plan instead of the state program your Declaration of Intent has to be filed by November 15, 2026, with a consultation form signed by a licensed Maryland insurance producer. Payroll deductions begin in January 2027 at 0.9% of wages split evenly between employer and employee, the first quarterly report and payment are due in April 2027, and benefits do not start until January 2028.
Most Maryland employers we speak to have filed this one under 2028. It is a 2027 payroll problem, and one piece of it is a today problem.
Maryland’s Family and Medical Leave Insurance program, FAMLI, will eventually give workers up to 12 weeks of paid, job protected leave at up to $1,000 per week. That part starts in January 2028. But the obligations on employers start well before then, and the first one is already live.
The dates that actually matter
| When | What you have to do |
|---|---|
| Now | Register. Any employer with at least one Maryland employee must have a FAMLI account. Registration is open |
| By November 15, 2026 | If you may want a private plan, file a Declaration of Intent. It requires a signed Proof of Private Plan Consultation |
| January 2027 | Begin withholding employee contributions through payroll |
| April 2027 | First quarterly wage and hour report, and first contribution payment |
| July 2027 | Begin giving employees the required notice, six months before benefits open |
| October 1, 2027 | Private plan applications are due for employers who filed a Declaration of Intent |
| January 2028 | Employees can start taking leave and claiming benefits |
The gap between registering and paying anything is more than a year. That is exactly why it slips.
What it costs
Maryland set the initial rate at 0.9% of wages, up to the Social Security wage cap. It is split evenly: 0.45% from the employer and 0.45% from the employee. That rate applies to wages paid from 1 January 2027 through 31 December 2027.
From November 2027 the state will announce a new rate each year. By statute the total cannot exceed 1.2% of wages.
You may choose to pay the employee share yourself. There are tax implications to that, so it is worth a word with your accountant before you decide.
The small employer rule, stated correctly
This is the part we see explained wrongly most often, including by AI summaries.
Employers with fewer than 15 employees are small employers. A small employer does not owe the employer share. It remits only 50% of the total rate, which is the employee half, and may withhold that entire amount from employee pay.
So the practical difference is not that you are exempt from FAMLI. You still register, withhold, file quarterly reports and remit. Your total remittance is halved, and you can fund it entirely from payroll deductions.
Two traps worth knowing about now
Your payroll provider cannot register for you. Third party agents, which includes payroll companies, PEOs, CPAs and benefits administrators, are explicitly blocked from creating the account on your behalf. The state did this deliberately so employers keep ownership of the account. Once you have registered, your provider can be granted power of attorney and take over quarterly reports, contributions and claims responses.
If you are assuming your payroll company has handled this, check. They cannot have.
Employer size counts your out of state people. FAMLI determines size by counting every employee under the same federal EIN, inside Maryland and outside it. A Rockville firm with 11 Maryland employees and 6 in Virginia is a 17 employee company and does not qualify for the small employer rate. Independent contractors do not count.
During 2027 the state recalculates your size each quarter from your wage and hour report, so a company sitting near the threshold can move in and out of small employer status through the year.
The private plan option, and the November 15 deadline
You can use a private plan instead of the state plan, as long as it meets or exceeds the state plan’s benefits. A private plan may cost more than the state plan overall, but it cannot charge employees more than the state plan would. If approved, you stop remitting contributions to the state, but you still file wage and hour reports and claims data every quarter, and you must keep applications, outcomes, benefits paid, reconsideration requests and wage reports for at least five years.
The decision has a deadline that comes well before the plan does. If you think you might want a private plan, you need to file a Declaration of Intent with the FAMLI Division by November 15, 2026.
The Declaration of Intent is not the private plan application. It is what exempts you from remitting 2027 contributions to the state while you work through the decision. You still collect contributions starting in January; you hold them rather than sending them to the state. Filing it requires a signed Proof of Private Plan Consultation from a licensed Maryland insurance producer or insurer representative, and the state responds within fifteen business days.
The private plan application itself opens in 2027 and is due October 1, 2027.
If you miss November 15, you are not locked out of a private plan. You will remit 2027 contributions to the state and can still apply during 2027. The difference is cash flow and flexibility, which is worth understanding before the deadline rather than after.
Whether a private plan makes sense depends on your workforce and your existing disability and leave arrangements, which is a real analysis rather than a quick answer.
Employees in more than one state?
Our 50-state paid family and medical leave advisory lays every program out side by side: rates, maximums, who pays, and where private plans are allowed. Sixteen pages, current as of October 7, 2026.
Weighing a private plan before November 15?
The Declaration of Intent needs a consultation signed by a licensed Maryland insurance producer. We will walk through the state plan and a private plan with you and look at how each fits your current disability and leave coverage.
What we would do in the next month
- Register, if you have not. It is the only item with no lead time and no one else can do it for you.
- If a private plan is on the table, decide before November 15 whether to file a Declaration of Intent. Filing keeps the option open; missing it means remitting 2027 contributions to the state.
- Count your employees properly, across every state, under your EIN. That number decides your rate.
- Tell your payroll provider you have registered and ask what they need in order to be granted power of attorney.
- Put January 2027 in the payroll calendar, not 2028. That is when money starts moving.
- If you already offer paid parental leave or short term disability, note where FAMLI will overlap. That is a plan design conversation for your next renewal, not something to solve today.
We are based in Gaithersburg and most of our clients are Maryland employers, so this one is landing on our desk as much as yours. If you want a second set of eyes on where FAMLI meets your existing leave and disability coverage, that is a conversation rather than a presentation.
Talk with our benefits team
Every employer’s situation is a little different. Our Gaithersburg-based benefits team works with businesses across DC, Maryland and Virginia every day, and a short conversation can help you sort out what applies to your plan, what needs attention now, and what can wait until renewal.
If you have employees outside Maryland as well, our 50-state paid family and medical leave advisory lays the programs out side by side, including the Declaration of Intent timing and what each state requires before approving a private plan.
Frequently Asked Questions
Does every Maryland employer have to register for FAMLI?
Yes. If you have at least one employee in Maryland you are required to register, and the state is explicit that there are no exceptions under the law. Registration is open now.
When do FAMLI payroll deductions actually start?
January 2027. The first quarterly wage and hour report and the first contribution payment are both due in April 2027. Benefits themselves do not become available to employees until January 2028.
What is the FAMLI contribution rate?
The initial rate is 0.9% of wages up to the Social Security wage cap, split evenly between employer and employee at 0.45% each. It applies to wages paid during the 2027 calendar year. From November 2027 Maryland will set the rate annually, and it cannot exceed 1.2% of wages.
Can our payroll company register for FAMLI on our behalf?
No. Third party agents including payroll providers, PEOs and CPAs cannot register for you. The employer has to create the account. After that you can grant your provider power of attorney so they can file quarterly reports, remit contributions and respond to claims.
We have 10 employees in Maryland and 8 in Virginia. Are we a small employer?
No. FAMLI counts every employee under the same federal EIN, including those working outside Maryland, so that is an 18 employee company. Small employer status applies below 15 total employees. Independent contractors are not counted.
What does small employer status actually change?
It exempts you from the employer share. A small employer remits 50% of the total contribution rate, which is the employee half, and may withhold that entire amount from employee pay. All other obligations, including registration and quarterly reporting, are the same.
What is the deadline to file a FAMLI Declaration of Intent?
November 15, 2026. Employers that may want a private plan file it with the FAMLI Division so they do not have to remit 2027 contributions to the state while they decide. The private plan application itself is due October 1, 2027.
Who can sign the Proof of Private Plan Consultation?
A licensed Maryland insurance producer or an insurer representative. The signed form is required to file the Declaration of Intent.
What happens if we miss the November 15 deadline?
You can still apply for a private plan during 2027, but you will remit 2027 contributions to the state in the meantime instead of holding them.
Get the 50-state paid leave guide, or talk it through with us
Our free guide covers paid family and medical leave rules in all 50 states, including Maryland, DC and Virginia. If you would rather walk through what it means for your plan and your team, book a benefits review with one of our advisors.
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