Payroll Massachusetts, Unique aspects of payroll law and practice in Massachusetts

The Massachusetts State Agency, which oversees the collection and reporting of state income taxes withheld from paychecks, is:

revenue department

sleeper street 51

Boston, MA 02205

(617) 887-6367

(800) 392-6089 (in state)

Massachusetts permits use of the federal Form W-4 when the asserted state and federal exceptions are the same. Otherwise, you must use the M4 Massachusetts Employee’s Withholding Exemption Certificate for Massachusetts withholding.

Not all states allow pay cuts under Section 125 of the Cafeteria Plans or 401(k) to be treated in the same manner as the IRS Code allows. In Massachusetts, cafeteria plans are not taxable for calculating income tax; taxable for unemployment insurance purposes. 401(k) plan deferrals are not subject to income tax; taxable for unemployment purposes.

In Massachusetts, additional wages must be aggregated for the calculation of the state income tax deduction.

You must submit your Massachusetts W-2 on magnetic media if you are required to submit your federal W-2 on magnetic media.

The Massachusetts State Unemployment Insurance Agency is:

Occupational safety department

Charles F Hurley Bldg.

19 Staniford St, 5th floor. THE

Boston, MA 02114-2589

(617) 626-6855

The Massachusetts taxable wage base for unemployment purposes is wages up to $14,000.00.

Massachusetts requires Magnetic Media to report quarterly payroll reporting if the employer has at least 250 employees reporting that quarter.

Unemployment records must be retained in Massachusetts for a minimum of four years. This information generally includes: name; social security number; dates of employment, reinstatement and termination; wages by period; payroll periods and payment dates; Date and Circumstances of Termination.

BACA JUGA:  Video conferencing and the advent of mobile technology

The Massachusetts State Agency, charged with enforcing state wage and hour laws, is:

Ministry of Labor and Industry

Fair Labor and Business Practices Department

200 Portland St.

Boston, MA 02114

(617) 727-3465

The minimum wage in Massachusetts is $6.75 an hour.

The general Massachusetts provision for overtime pay from a non-FLSA employer is one and a half times the regular rate after a 40-hour week.

New hire reporting in the state of Massachusetts requires every employer to report every hire, rehire, and contractor over $600. The employer must report the federally required elements of:

  • Name of the employee
  • rental or contract date
  • address of the employee
  • Employee’s social security number
  • Name of employer
  • Employer’s Address
  • Employer’s Federal Employer Identification Number (EIN).

This information must be reported within 14 days of hiring or reinstatement.

Information may be submitted as W4 or equivalent by mail, facsimile or electronically.

There is a $25.00 penalty for late reporting and $500 for conspiracy in Massachusetts.

The Massachusetts Registration Office for New Hires can be reached at 800-332-2733 or 617-626-4154 or at

Massachusetts does not allow mandatory direct deposit.

Massachusetts requires the following information on an employee’s payslip:

  • gross and net earnings
  • Name of employer and employee.
  • date of payment
  • amount and type of deductions
  • increases
  • straight hours and overtime pay
  • working hours
  • itemized deductions

Massachusetts requires employees to be paid biweekly or weekly; bi-monthly or bi-weekly for FLSA-exempt or salaried employees (monthly if they agree).

Massachusetts requires that the delay between the end of the pay period and the payment of wages to the employee does not exceed six days when the work week is 5 or 6 days; 7 days after the payment deadline if the working week is 7 days or less than 5 days.

BACA JUGA:  Keeping an attendance register for employees

Massachusetts payroll law requires that involuntarily terminated employees be paid their final salary immediately and that voluntarily terminated employees be paid their final salary by the next regular payday (if there is none, next Saturday) or by mail if the employee this requires.

Deceased employee’s wages of $100 must be paid to the surviving spouse, adult child, or parent (in that order) 30 days after the death and in the absence of a will.

Escheat laws in Massachusetts require unclaimed wages to be remitted to the state after three years.

The employer is also required in Massachusetts to keep records of wages given up and remitted to the state for a period of 5 years.

Massachusetts payroll law dictates that no more than $4,125 may be used in tip credit.

In Massachusetts, payroll laws that require mandatory rest or meal breaks only require all employees to have 30 minutes of rest after six hours of work.

Massachusetts law requires wage and hour records to be retained for a minimum of two years. These records usually consist of at least the information required by FLSA.

The Massachusetts agency responsible for enforcing child support orders and laws is:

Massachusetts Treasury Department

Child Support Enforcement Division

sleeper street 51

PO Box 9492

Boston, MA 02205-9492

(800) 332-2733

Massachusetts has the following provisions for child support deductions:

  • When to start withholding? Next payday more than 3 days after notification.
  • When should the payment be sent? Within 3 days after payday.
  • When to send notice of termination? Within 3 days after payday.
  • Maximum management fee? $1 per payment.
  • retention limits? Federal rules under CCPA.
BACA JUGA:  4 categories of e-commerce

Please note that this article is not updated for changes that may and will occur from time to time.