Massachusetts payroll, unique aspects of Massachusetts payroll law and practice
Posted On July 28, 2021
The Massachusetts State Agency that oversees the collection and reporting of state income taxes deducted from payroll checks is:
51 Sleeper St.
Boston, MA 02205
(800) 392-6089 (in the state)
Massachusetts allows the use of the federal form W-4 if the exemptions claimed are the same for the state and the federal government. Otherwise, you must use the “Massachusetts Employee Withholding Exemption Certificate M4” for Massachusetts income tax withholding.
Not all states allow salary reductions made under Section 125 or 401 (k) cafeteria plans to be treated the same way the IRS code allows. In Massachusetts, cafeteria plans are not taxed for income tax calculation; taxable for unemployment insurance purposes. 401 (k) plan deferrals are not subject to income tax; taxable for unemployment purposes.
In Massachusetts, supplemental wages are required to be added for the calculation of state income tax withholding.
You must file your Massachusetts State W-2s by magnetic means if you must file your federal W-2s by magnetic means.
The Massachusetts State Unemployment Insurance Agency is:
Occupational Safety Division
Charles F. Hurley Bldg.
19 Staniford St., 5th Fl. DET
Boston, MA 02114-2589
The state of Massachusetts taxable wage base for unemployment purposes is wages up to $ 14,000.00.
Massachusetts requires magnetic media to report quarterly wage reports if the employer has at least 250 employees who are reporting that quarter.
Unemployment records must be kept in Massachusetts for a minimum period of four years. This information generally includes: name; Social Security number; hiring, rehiring and termination dates; wages by period; payroll pay periods and pay dates; date and circumstances of termination.
The Massachusetts state agency charged with enforcing state wage and hour laws is:
Department of Labor and Industries
Fair Trade and Labor Practices Division
200 Portland St.
Boston, MA 02114
The minimum wage in Massachusetts is $ 6.75 per hour.
The general provision in Massachusetts for overtime pay at a non-FLSA-covered employer is one and a half times the regular rate after 40 hours per week.
The Massachusetts state new hire reporting requirements are that each employer must report every new hire and rehire and contractors that exceed $ 600. The employer must report the federally required elements of:
- Name of the employee
- hiring or contract date
- Employee address
- Employee’s Social Security Number
- Name of the employee
- Employee address
- Employer’s Federal Employer Identification Number (EIN)
This information must be reported within 14 days after hiring or rehiring.
Information can be submitted as W4 or equivalent by mail, fax, or electronically.
There is a fine of $ 25.00 for a late report and $ 500 for conspiracy in Massachusetts.
You can contact the Massachusetts New Hire Reporting Agency at 800-332-2733 or 617-626-4154 or on the web at http://www.cse.state.ma.us/.
Massachusetts does not allow mandatory direct deposit.
Massachusetts requires the following information on an employee’s pay stub:
- Gross and net profit
- Name of employer and employee.
- Payment date
- amount and nature of deductions
- normal time and overtime pay
- hours worked
- deductions per item
Massachusetts requires the employee to receive a biweekly or weekly payment; biweekly or biweekly for FLSA exempt or salaried employees (monthly if they agree).
Massachusetts requires that the time lapse between the end of the pay period and the payment of wages to the employee not exceed six days if the workweek is 5 or 6 days; 7 days after the pay period if the work week is 7 days or less than 5 days.
Massachusetts payroll law requires that involuntarily laid off employees be paid their final pay immediately and that voluntarily laid off employees be paid their final pay on the next regular payday (if there is none, next Saturday) or by mail if the employee requests it.
The deceased employee’s $ 100 salary must be paid to the surviving spouse, adult child, or parent (in that order) 30 days after death and if there is no will.
Withholding laws in Massachusetts require that unclaimed wages be paid to the state after three years.
In addition, the employer is required in Massachusetts to keep a record of wages abandoned and turned over to the state for a period of 5 years.
Massachusetts payroll law requires that no more than $ 4,125 can be used as a tip credit.
In Massachusetts, the payroll laws covering mandatory breaks or meal breaks are just that all employees must rest 30 minutes after six hours of work.
Massachusetts statute requires that wage and hour records be kept for a period of not less than two years. These records will normally consist of at least the information required by the FLSA.
The Massachusetts agency charged with enforcing child support laws and orders is:
Massachusetts Department of the Treasury
Child Support Enforcement Division
51 Sleeper St.
PO Box 9492
Boston, MA 02205-9492
Massachusetts has the following provisions for child support deductions:
- When to start withholding? Next payday more than 3 days after notification.
- When to send the payment? Within 3 days after the payday.
- When to send the Notice of Termination? Within 3 days after the payday.
- Maximum administrative fee? $ 1 per payment.
- Retention limits? Federal rules under CCPA.
Please note that this article is not updated for changes that can and will happen from time to time.