Massachusetts payroll tax and registration guide

Updated September 12, 2023

What we'll cover:

• What information OnPay needs from you
• What state and local taxes and filings OnPay handles for Massachusetts employers
• Where you can find the tax account numbers needed
• Paying employees in other states?

Why is this important?

The following information requests and registration instructions are required before you can use a payroll provider to run payroll. This is in compliance with state payroll tax regulations. Without this information, OnPay is unable to file or deposit any tax payments for your company, and will not be responsible for any resulting penalties or interest. Note: If this isn't the only state where you have employees, there will be a separate guide like this one for each state where you hire and pay workers. 

Let Middesk handle your state tax registrations (and more)

If you'd like help, our partner Middesk makes hiring employees and staying compliant with every state agency simple and easy.

• Register with every state agency to get the tax IDs you need within minutes
• Stay compliant as you grow by managing agency mail and notices in your dashboard
• Manage your government accounts in one place on Middesk's intuitive platform
• Foreign Qualify with the Secretary of State to create payroll tax accounts 

Learn more about Middesk→

What information OnPay needs from you

What state and local taxes and filings OnPay handles for Massachusetts employers

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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

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 will generally be 2.42% for non-construction employers (and 6.72% for construction employers) with a wage base of $15,000. The rate for Employer Medical Assistance Contribution ranges from .012% to 0.34%.

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 2.42%, 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 6.72%. 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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