Paid Medical Leave Act ( PMLA)

by | Dec 23, 2024 | Government, Tax

Understanding the Paid Medical Leave Act: What Employers Need to Know

As of 2025, the Paid Medical Leave Act will require all businesses with employees to comply with new mandatory sick time rules. Whether your employees are part-time or full-time, the only exceptions are for those who work less than 20 weeks per year or those exempt from FICA taxes. It’s important to note that the 20-week requirement does not have to be consecutive. Employees qualify as long as they work at least 20 weeks out of the 52-week calendar year.

Sick Time Accrual and Minimum Hours Based on Employee Count:

There are two different ways to accrue the mandatory sick time based on the number of employees you have.

Employee Count Accrual Minimum hours given
Less than 10 1 hour of sick time for every 30 hours of work

40 hours paid and 32 hours unpaid

*Paid time must be used first*

More than 10 1 hour of sick time for every 30 hours of work

72 hours paid.

*There is no requirement for unpaid sick time*

 

Carryover and Payout Options:

In addition to the accrual of sick time, employees are also allowed to carry over or be paid out for up to 72 hours. Additionally, if your organization has a paid time off (PTO) policy that allows for unused vacation time to be paid out, you must extend the same option for unused sick time.

Impact on Current Paid Time Off Policies:

Employers may wonder how this new law affects existing PTO or vacation policies. If your business already offers a PTO policy that allows employees to use their time at their discretion (not limited to vacation purposes), you may not need to make significant changes. The primary change would be to ensure that employees meet the required minimum hours of sick time per year and per hours worked. However, Senter, CPA highly recommends consulting with an HR professional or attorney to ensure full compliance with the law.

Recordkeeping Requirements:

Employers are required to maintain records for at least three years, including:

  • Hours worked by employees.
  • Sick time earned, used, and carried over.
  • Paid and unpaid sick time details.

Notification Requirements:

Employers are also required to provide written notice to all employees prior to the new effective date of February 21st, 2025. Any new hires after the effective date must be given the written notice at the time of hire. If you hire an employee on a probationary period such as ninety days, you must start accruing the sick time as of the first day they work not when the probationary period ends. However, you can restrict them from being able to use it until after the probationary period is completed.

What Employers Should Do Now:

To ensure compliance with the Paid Medical Leave Act, employers should:

  • Review and update their sick time policies to align with the new regulations.
  • Keep accurate records of sick time accrual and usage.
  • Provide written notices to current and new employees, ensuring they understand their rights under the new law.

 

It’s essential for employers to consult with legal professionals to navigate any uncertainties regarding their current PTO policies and sick time accrual methods.

 

For more information, please visit www.michigan.gov/wagehour

 

Always remember, Senter, CPA is here for you if you need any assistance.

Don't hesitate to give us a call at 248-934-0550, or contact us below.

The 7 Deadly (Tax) Sins of Small Business Owners

Running a business is hard enough — between serving customers, managing staff, and juggling invoices, your taxes can feel like an afterthought. But beware, small business owner: the IRS has seen it all, and a few “little” mistakes can cost you big.

What the New “No Tax on Tips” Rule Means for You

The treatment of tip income is changing in 2025, thanks to the new “No Tax on Tips” provision introduced under the One Big Beautiful Bill Act (OBBBA). While tips remain taxable in several respects, eligible workers may now claim a federal income tax deduction of up to $25,000 annually for “qualified tips.”

Why QuickBooks Can’t Replace Your Accountant (Even If It Thinks It Can)

Let’s face it — QuickBooks is amazing. It’s like the Swiss Army knife of bookkeeping. It tracks your income, pays your bills, and even sends friendly reminders that you forgot to reconcile your bank account… again. But while QuickBooks can do a lot, it can’t do everything — especially the things that can make or save you money. And that’s where your accountant (hi, that’s us) comes in.

Business Mileage Deductibility: What Qualifies and What Does Not

Vehicle expenses can be a valuable tax deduction, but only when mileage is properly classified and documented. For tax purposes, the deductibility of mileage depends on whether the travel is considered business, commuting, or personal. Understanding these distinctions is essential to support allowable business mileage deductions.

Welcome to the Senter, CPA Team – Shannon Currie

Shannon is pleased to join the Senter team as a Staff Accountant.

How to Document Charitable Donations for Tax Deductions

Accurate documentation is essential when claiming charitable contributions on your tax return. The IRS requires specific records depending on the type and value of your donations. Maintaining proper records ensures your contributions are deductible and helps you avoid issues if your return is ever reviewed.

How to make Federal & State Income Tax Payments (update January 2026)

Paying federal and Michigan income taxes is pretty straightforward and are now required to be paid online.

2025 Individual Tax Return Process

At Senter, CPA, our goal is to make your tax preparation experience as seamless and efficient as possible.

What are QCD’s?

Qualified Charitable Distributions (QCDs) are a tax-efficient way for eligible IRA owners to support charitable organizations while managing taxable income. Individuals who are age 70½ or older may donate up to $108,000 in 2025 directly from a traditional IRA to a qualified charity. When structured properly, a QCD is excluded from taxable income, may satisfy Required Minimum Distribution (RMD) requirements, and can help reduce overall tax liability.

Common Tax Documentation for 2025 Tax Season

Getting your tax documents organized for your preparer can feel overwhelming—but you don’t have to do it alone. One of the most common questions we hear is, “What documents do I need for my individual tax return?”