A new deduction on your paycheck usually prompts a simple question: what am I paying for, and when can I use it? Maryland's Family and Medical Leave Insurance program, known as FAMLI, has two different start dates.
Maryland’s official FAMLI program page sets out this timetable:
Date | What begins |
|---|---|
January 1, 2027 | Payroll contributions; FAMLI benefits are not yet payable. |
April 30, 2027 | First quarterly contribution payment due for January–March wages, under the State Plan. |
January 1, 2028 | Benefits become available to eligible workers for qualifying leave. |
A contribution taken during 2027 does not mean FAMLI will pay for leave taken that year.
How much will come out of my paycheck?
Maryland's contribution guidance sets the initial total rate at 0.9% of covered wages up to the Social Security wage cap for 2027. Employers may withhold up to half from employees: 0.45%. An employer can choose to pay more of the cost itself.
For example, 0.45% of $2,000 in covered wages is $9. The exact deduction depends on covered wages and the applicable annual cap. Do not use the 2026 Social Security cap to calculate a full year's 2027 contributions; check the cap that applies for 2027.
Does working for a small business change the deduction?
Employers with fewer than 15 total employees generally owe only the employee-side amount, which they may withhold from pay. For this headcount, the state counts employees inside and outside Maryland under the same federal Employer Identification Number. A small employer's reduced contribution does not make the program optional for employees.
Coverage turns on whether the position is localized in Maryland; residence alone does not decide it. If you commute across state lines or work remotely, ask payroll which state's employment rules they are applying and why.
Can I opt out if I do not plan to take leave?
The official employee guide says participating employees cannot opt out merely because they do not expect to claim. Ordinary contributions are not an individual savings account and are not refunded because someone never uses benefits.
Your employer may use the State Plan or an approved private plan. The state contribution guidance says a private plan cannot charge an employee more than the State Plan employee amount. Ask which plan applies and where its written information is available.
What happens when benefits start in 2028?
The program is intended to provide eligible workers with up to 12 weeks of paid, job-protected leave for qualifying family and health needs, with benefits up to $1,000 a week. Eligibility generally requires at least 680 hours in a position localized in Maryland over the four reported calendar quarters before the claim or leave begins, whichever is earlier.
Qualifying events include welcoming a child, a serious health condition, caring for a family member and certain military-family needs. Those eligibility and claim rules will matter when benefits launch; making a deduction alone does not guarantee approval of every leave request.
What if I need leave during 2027?
Ask about the benefits and leave rules already available to you, such as employer paid leave, short-term disability coverage or the federal FMLA where applicable. Do not postpone an urgent request because FAMLI is not paying benefits yet. Equally, do not assume a current leave entitlement guarantees payment under the future program.
If your employer describes a 2027 absence as “FAMLI leave,” ask it to identify the policy or benefit that will actually pay for the time off and explain any job-protection process separately.
Questions to send payroll before the first deduction
Is my position covered by Maryland FAMLI, and are you using the State Plan or an approved private plan?
What employee percentage will you deduct, and will the company pay any part of it?
Which wages and annual cap will you use?
How will the deduction be labeled on my pay statement?
Where can I find the plan information and report a payroll error?
Keep the response and your first 2027 pay statement. If the amount looks wrong, provide the pay period, covered wages, percentage and amount taken. A calculation helps payroll investigate more quickly than a general objection to a new deduction.
Caira can help turn payroll information into a clear question or compare a written explanation with your pay statement. Verify contribution and eligibility questions with Maryland FAMLI or a qualified adviser.
Related reading
Maryland-specific information. Official sources checked October 7, 2026. Confirm current rates, regulations and program dates before acting.
Disclaimer: This article is general information, not legal, financial, tax or medical advice.
