Are small businesses exempt?

Businesses of all sizes are part of this program.

Even if you are exempt from FMLA or Unemployment Insurance (UI) requirements, you are more than likely required to participate in this program. The only significant exemptions for Paid Family and Medical Leave are federal employers and employees, federally recognized tribes and self-employed people (including independent contractors, sole-proprietors, partners and joint venturers). Federally recognized tribes and self-employed workers may opt in to the program.

Small businesses with fewer than 50 employees are exempt from paying the employer portion of the premium.

  • Small businesses must still withhold their employee's portion or cover it on their behalf.
  • Businesses of all sizes must fulfill all reporting requirements.
  • Employees at small businesses do not pay more than 63.333 percent of the total 0.4 percent and they are still fully covered by the program. 

Read more about calculating premiums or estimate your premiums using our premium calculator. Please note: Premiums should be withheld from each paycheck. Employers cannot collect missed premiums in later pay periods.