Understand your plan

All employers must register with FAMLI. After registration, all employers are automatically enrolled in FAMLI’s State Plan. You do not need to take any additional steps, and the State Plan is an easy option to ensure you are in compliance.

Employers can choose to use a private plan instead of the State Plan

A private plan is a FAMLI Division-approved alternative to the State Plan. All employers, regardless of plan type, must submit quarterly wage and hour reports starting in April 2027.

Private plans must provide the same level of benefits and service as the State Plan, or better. They also must be approved by the FAMLI Division.

There are two types of private plans: commercial plans and self-insured plans. Employers can seek input from employees when selecting a plan, but this is not required by FAMLI.

Commercial plans are purchased from an insurance company. 

The insurance company processes and pays employees’ claims. Any employer can purchase a commercial plan.

Self-insured plans are insured directly by the employer. 

The employer (or a Third-Party Agent) handles and pays employees’ claims. Employers with 50 or more employees can apply for a self-insured private plan. 

There is one exception: Employers with fewer than 50 employees can apply for a self-insured plan if they already have their own FAMLI-compliant plan in place by July 31, 2026.

If you have an approved self-insured plan, you can withhold contributions from employees, but you’re not required to. If you choose to withhold contributions from employees:

• You cannot withhold more than the employee contribution rate under the State Plan
• You must maintain FAMLI-related funds in a separate account used solely for FAMLI benefits

Preparing to use a private plan

Employers who intend to apply for a private plan in 2027 and wish to be exempt from contributions during the seeding period must submit a Declaration of Intent (DOI) between September 1-November 15, 2026. Private plan applications will be available in summer 2027.

Only Authorized Officers can submit a DOI for an employer. If you are the Authorized Officer for more than one employer, you need to submit a separate Declaration of Intent (DOI) for each EIN.

Steps for completing a DOI

1: Register with FAMLI

• Initial registration must be completed by** an Authorized Officer**

2: Download and complete Proof of Private Plan Consultation

• A licensed insurance agent or other representative of an insurance company in Maryland must complete and sign the form. 

3: Upload the completed Proof of Private Plan Consultation

• Once an Authorized Officer registers, they can upload the Proof of Private Plan Consultation and attest to their understanding of their obligations through their FAMLI account and submit their DOI
• FAMLI won’t accept forms that are unreadable, incomplete, or not signed.

4: Receive DOI decision

• A submission confirmation email will be sent to the Authorized Officer’s email address.

FAMLI will notify the Authorized Officer of the outcome of the DOI submission within 15 business days.

What you need to do after your DOI is accepted

Once your DOI is accepted, you’ll collect contributions starting in January 2027 but won’t remit them to the State. Instead, you must hold all contributions in an escrow account. You can collect contributions from your employees or self-fund the escrow account. (Note: There is a statutory exception to this requirement for certain governmental employers.)

Important: Private plans can charge employers more than the State Plan rate. However, you cannot withhold more from your employees than they would pay under the State Plan. 

Employers who submit a DOI must apply for a private plan in summer 2027. If an employer does not apply for a private plan, they may face penalties and fees.

How the money in your escrow account is used depends on your final plan status.

If your application is denied or you choose the State Plan: You must remit the escrowed contributions to the State.

If you’re approved for a commercial private plan: You must return any employee contributions to your employees.

If you’re approved for a self-insured private plan: You can use the escrowed contributions to fund a separate account used solely for FAMLI benefits.

Reporting requirements for private plans

Employers using a private plan must still submit quarterly wage and hour reports and claims data to the FAMLI Division. While all employers submit quarterly wage and hour reports, reporting claims data is an additional requirement for employers who choose to enroll in a private plan.

Learn more about Quarterly Wage and Hour Report requirements.

Commitment and switching plans

If you choose a private plan, you must stay in that plan for at least one year. After one year, you can apply to switch to a different private plan or join the State Plan. You can also leave the State Plan and join a private plan, as long as the change does not result in a lapse in coverage.

Note: If you leave your private plan to join the State Plan you should be aware of the following requirements:

• If you leave your private plan to join the State Plan between January 1, 2028 and December 31, 2028: you will owe contributions dating back to January 1, 2027, plus interest, and must begin remitting quarterly contributions going forward.
• If you leave your private plan to join the State Plan between January 1, 2029 and December 31, 2029: you will owe half of the contributions due since January 1, 2027, plus interest, and must begin collecting contributions going forward.

When you switch plans, employees can access benefits immediately—there is no waiting period. All approved plan changes take effect at the beginning of the next quarter, and there can be no gap in coverage.

Private plan costs and contribution rates

Private plans set their own contribution rates and are not required to charge all employers the same rate. The Maryland Department of Labor sets the rate for the State Plan.

Reminder: Private plans can charge employers more than the State Plan rate. However, you cannot withhold more from your employees than they would pay under the State Plan. For example, if the State Plan contribution rate is 0.9%, you cannot withhold more than 0.45% (50% of 0.9%) of an employee’s wages, even if your private plan charges you a higher rate. 

Employee contributions for self-insured plans

If you have an approved self-insured plan, you can withhold contributions from employees, but you’re not required to. If you choose to withhold contributions from employees:

• You cannot withhold more than the employee contribution rate under the State Plan
• You must maintain FAMLI-related funds in a separate account used solely for FAMLI benefits

Learn more about how contributions work.

Application fees

Employers applying for a private plan will need to pay an annual application fee based on plan type and employer size.

Self-insured plan fee:

$1,000 (all employer sizes)

Commercial plan fees (based on the number of employees localized in Maryland at the time of application):

$100 for employers with 1-14 employees

$250 for employers with 15-49 employees

$500 for employers with 50-199 employees

$600 for employers with 200-499 employees

$750 for employers with 500-999 employees

$1,000 for employers with 1,000 or more employees