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Massachusetts Payroll Tax Registration

As an employer who recently hired someone in Massachusetts, it is important to understand the process of payroll tax registration in the state. This involves registering with the Massachusetts Department of Revenue (DOR) to ensure compliance with state tax laws and facilitate the proper withholding and remittance of payroll taxes.

How Massachusetts Payroll Registration Works

There are 3 payroll tax setup tasks you may need to complete in Massachusetts to get your new hire on payroll for the first time. You can follow the guide below to help you get registered directly with the Massachusetts agencies or use Mosey to do it.

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Massachusetts Withholding Tax Setup

If you have employees in Massachusetts, you are required to register with the Department of Revenue in order to set up a withholding tax account and a Paid Family and Medical Leave account.

  1. File New Business Registration

    Visit MassTaxConnect to file a New Business Registration online. When prompted, select "Withholding Tax" and "Paid Family & Medical Leave" as the account types to be registered. After completing the registration, you will receive a Withholding account number, Withholding deposit schedule, and a paid family and medical leave account number. Note: You can include additional tax types like sales or corporate excise Tax in the same registration.

Massachusetts Unemployment Insurance Setup

If you have employees in Massachusetts, you are required to register with the Department of Unemployment Assistance for an Unemployment Insurance account.

  1. Register Online with the Department of Unemployment Assistance

    Complete the online Unemployment Insurance Employer Registration to register with the Department of Unemployment Assistance. After completing the registration, you will find on the confirmation page your Employer Account Number, Unemployment Insurance tax rate, permanent User ID, and a system-generated temporary password.

  2. Setup Permanent Password and PIN

    After completing the online Employer Registration, you should immediately login to your User ID with your system-generated temporary password. You can then setup your permanent password, security question, and a four-digit PIN.

  3. Configure Payroll Software

    Add the Employer Account Number and Unemployment Insurance tax rate to your payroll software provider.

Massachusetts Paid Family and Medical Leave Setup

If you have employees in Massachusetts, you are required to register an account for Paid Family and Medical Leave (PFML), a program offering up to 26 weeks of paid leave for family or medical reasons to eligible employees. Employers with less than 25 employees in Massachusetts have no contribution obligation, but are required to withhold and remit 0.344% of wages as the employees' contribution. Employers with 25 or more employees are required to remit 0.68% of wages as the PFML contribution. Employers are allowed to split the contribution with employees, with the employee portion capped at 0.344% of wages. Note: Employers can apply for an exemption from PFML contributions if they offer approved private plans with paid leave benefits that are equal to or more generous than those of the state PFML program.

  1. Set Up a Paid Family and Medical Leave Account

    New employers in Massachusetts typically get their Paid Family and Medical Leave account while registering for Withholding Tax. To set up a new Paid Family Medical Leave account, log into your MassTaxConnect account and select "More.." and then "Add a new account" under the "Access" section.

  2. Setup Employer-Employee Contribution Split with Your Payroll Provider

    If you elect to cover your employees' Paid Family Medical Leave contribution in part or in full, you will need to configure it with your payroll provider.

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