Why is this important?
The following information requests and registration instructions must be completed before you can use OnPay to run payroll. To maintain compliance with state payroll tax regulations, you will need to provide:
- Your state Employer Identification Number and state tax IDs - You must be registered with all state and local agencies listed in this article
- Tax rates - State and local tax offices determine these rates based on the type, age, and size of your business
- TPA and power of attorney - Most tax offices require this before we can submit quarterly wage reports and deposits on your behalf
This information must be provided and maintained by you in order for OnPay to accurately file and deposit tax payments for your company. OnPay is not responsible for any penalties or interest that incur due to missing or incorrect company tax information.
Note: Each state has its own requirements, so if you pay employees in more than one state, you’ll find separate tax guides for each state.
Let Middesk handle your state tax registrations
Want help registering your business with state agencies? We've partnered with Middesk to make it simple and easy for you to stay compliant in your state — and every state — when hiring employees.
- Register with state agencies and get the tax IDs you need within minutes
- Manage all your government accounts in one place using Middesk's intuitive platform
- Stay compliant as you grow by managing agency mail and notices from your Middesk dashboard
- Foreign Qualify with the Secretary of State to create payroll tax accounts
What information OnPay needs from you
Use this checklist to make sure you’ve covered everything required to set up your account as a Massachusetts employer so OnPay can accurately file and pay taxes on your behalf:
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✔ |
To do: |
What is this? |
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Make sure your business is registered with the Massachusetts Department of Revenue |
Allows your business to file and pay taxes in Massachusetts |
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Make sure your business is registered with the Commonwealth of Massachusetts |
Allows your business to pay required unemployment insurance in Massachusetts |
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Provide OnPay with your Massachusetts Tax ID and deposit schedule |
The employer identification number issued by the Massachusetts Department of Revenue |
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Provide OnPay with your Massachusetts Unemployment ID |
A number unique to your account with the Commonwealth of Massachusetts |
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Provide OnPay with your Massachusetts Unemployment (SUI) Rate |
A tax rate you receive annually from the Commonwealth of Massachusetts |
What state and local taxes and filings OnPay handles for Massachusetts employers
OnPay handles the filing of all state and local taxes for businesses in Massachusetts, including:
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Type of Tax |
Form ID |
Form Name |
Frequency |
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Withholding |
Form M-941 (Filing) |
Employer’s Return of Income Tax Withheld |
Monthly, Quarterly, & Annually |
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M-3 (Filing) |
Reconciliation for Massachusetts Income Taxes Withheld for Employers |
Annual |
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State W-2 (Filing) |
Wage and Tax Statement |
Annual |
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Unemployment |
Form WR-1 (Filing) |
Employer's Quarterly Tax and Wage Report |
Quarterly |
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Paid Family Leave |
Paid Family Leave Report |
Massachusetts Paid Family and Medical Leave Quarterly Return and Payment |
Quarterly |
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Other |
New Hire Report (Filing) |
Massachusetts Report of New Hires |
As required |
Where you can find the tax account numbers needed
If you are an existing employer who has previously run payroll in the state of Massachusetts, you likely already have the IDs and online accounts needed for OnPay to process your tax filings.
If you are a new employer in Massachusetts, you will need to register your business with the Department of Revenue and Commonwealth of Massachusetts. This must be completed for OnPay to be able to file and pay your Massachusetts taxes.
State Tax ID
Existing Massachusetts Employer:
You can find your Withholding Tax Employer Identification Number on notices received from the Massachusetts Department of Revenue. If you cannot locate this document or identification number, please call the Massachusetts Department of Revenue at (617) 887-6367 to request it.
New Massachusetts Employer: Register with the Department of Revenue
- Go to the MassTax Connect website and do the following:
- Click on “Register A New Taxpayer”
- Click “Register a business”
- After you register with the DOR, you will receive an EIN (This will be identical to your FEIN) and a tax deposit schedule. If you have questions about this process, contact the DOR at (617) 887-6367
Massachusetts Unemployment ID (DUA) and Tax Rate
Updated January 1, 2025
Existing Massachusetts Employer:
- You can find your Unemployment ID on the annual Tax Rate Notice received from the Commonwealth of Massachusetts. It can also be found on your Quarterly Contribution and Wage Report.
- Your Unemployment Tax Rate can also be found on the annual Tax Rate Notice in box 2, and range from 1.04% to 5.776% for positive-rated employers and from 7.756% to 15.85% for negative-rated employers, with a wage base of $15,000.
New Massachusetts Employer: Register with the Commonwealth of Massachusetts
- Go to the Department of Unemployment Assistance registration website.
- Make sure you have everything listed under “What you need”.
- Click on “UI employer registration”.
- Once you have registered, you should instantly receive a UI Account Number and a UI Contribution Rate. Note: When entering your UI Contribution Rate into OnPay, please do not include the Workforce Training Rate.
- For more guidance, follow the DUA’s step-by-step instruction guide.
- Your company will have an assigned new employer rate when it is in the first 3 years of being subject to MA SUI. The rate for new employers in a non-construction industry is 2.13%, including a 0.056% workforce training fund surcharge, and a wage base of $15,000. New employers in the construction industry will have a rate of 5.45%. If you're unsure about your rate, call the agency at (617) 626-5075 and request your current rate.
Paid Family Leave Employer Contribution Tax Rate
All Massachusetts Employers:
- As of 2022, the Massachusetts PFL program’s contribution rate is 0.68% for employers with 25 or more employees, and 0.344% for employers with less than 25 employees. Each year, Massachusetts sends every employer an annual contribution rate notice that will then need to be updated in OnPay.
- Massachusetts PFML FAQ
Paying employees in other states?
If you operate in multiple states or just have employees working from home across a state line, it's important to file the correct state forms for those workers. See what forms we file in the states where you pay employees.
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