Massachusetts payroll tax and registration guide

Why is this important?

To maintain compliance with state payroll tax regulations, you must provide the following information before you can use OnPay to run payroll:

• State Employer Identification Number and state/local tax IDs
• Tax rates - State tax offices set 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.

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.

See what information you need to provide OnPay, and what taxes and filings OnPay handles for Massachusetts Employers.

• 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:
  
  

  All Massachusetts employers	What is this?
  Make sure your business is registered with the Massachusetts Department of Revenue	Allows your business to file and pay taxes in Massachusetts More info >
  Make sure your business is registered with the Commonwealth of Massachusetts	Allows your business to pay required unemployment insurance in Massachusetts More info >
  Provide OnPay with your Massachusetts Tax ID and deposit schedule	The employer identification number issued by the Massachusetts Department of Revenue More info >
  Provide OnPay with your Massachusetts Unemployment ID	A number unique to your account with the Commonwealth of Massachusetts More info >
  Provide OnPay with your Massachusetts Unemployment (SUI) Rate	A tax rate you receive annually from the Commonwealth of Massachusetts More info >

• Taxes and filings OnPay handles for Massachusetts Employers

  Withholding Tax

  Form M-941 (Filing)	Employer’s Return of Income Tax Withheld	- Monthly, Quarterly, and Annual filings
  M-3 (Filing)	Reconciliation for Massachusetts Income Taxes Withheld for Employers	- Quarterly
  State W-2 (Filing)	Wage and Tax Statement	- Annual

  Unemployment Insurance Tax

  Form WR-1 (Filing)

  Employer's Quarterly Tax and Wage Report

  - Quarterly

  Paid Family Leave

  Paid Family Leave Report

  Massachusetts Paid Family and Medical Leave Quarterly Return and Payment

  - Quarterly

  Other

  New Hire Report (Filing)

  Massachusetts Report of New Hires

  - As required

Where you can find the tax account numbers you need

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.
• For more information, check out our 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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