| The Massachusetts State Agency that oversees | | | | Massachusetts new hire-reporting agency can be |
| the collection and reporting of State income taxes | | | | reached at 800-332-2733 or 617-626-4154 or on |
| deducted from payroll checks is:Department of | | | | the web at does not allow compulsory direct |
| Revenue | | | | deposit.Massachusetts requires the following |
| 51 Sleeper St. | | | | information on an employee's pay stub:Gross and |
| Boston, MA 02205 | | | | Net Earnings |
| (617) 887-6367 | | | | Employer's and employee's name. |
| (800) 392-6089 (in state) | | | | payment date |
| allows the use of the federal W-4 form if | | | | amount and nature of deductions |
| exemptions claimed are the same for state and | | | | increases |
| federal. Otherwise, you must use "M4 | | | | straight time and overtime pay |
| Massachusetts Employee's Withholding Exemption | | | | hours worked |
| Certificate" for Massachusetts income tax | | | | itemized deductionsMassachusetts requires that |
| withholding.Not all states allow salary reductions | | | | employee be paid biweekly or weekly; |
| made under Section 125 cafeteria plans or 401(k) | | | | semimonthly or biweekly for FLSA-exempts or |
| to be treated in the same manner as the IRS | | | | salaried employees (monthly if they |
| code allows. In Massachusetts cafeteria plans are | | | | agree).Massachusetts requires that the lag time |
| not taxable for income tax calculation; taxable for | | | | between the end of the pay period and the |
| unemployment insurance purposes. 401(k) plan | | | | payment of wages to the employee not exceed |
| deferrals are not taxable for income taxes; | | | | six days if workweek is 5 or 6 days; 7 days |
| taxable for unemployment purposes.In | | | | after pay period if workweek is 7 days or less |
| Massachusetts supplemental wages are required | | | | than 5 days.Massachusetts payroll law requires |
| to be aggregated for the state income tax | | | | that involuntarily terminated employees must be |
| withholding calculation.You must file your | | | | paid their final pay immediately and that voluntarily |
| Massachusetts State W-2s by magnetic media if | | | | terminated employees must be paid their final pay |
| you are required to file your federal W-2s by | | | | by the next regular payday (if there is none, the |
| magnetic media.The Massachusetts State | | | | next Saturday) or by mail if employee requests |
| Unemployment Insurance Agency is:Division of | | | | it.Deceased employee's wages of $100 must be |
| Employment Security | | | | paid to the surviving spouse, adult child, or parent |
| Charles F. Hurley Bldg. | | | | (in that order) 30 days after death and if there is |
| 19 Staniford St., 5th Fl. DET | | | | no will.Escheat laws in Massachusetts require that |
| Boston, MA 02114-2589 | | | | unclaimed wages be paid over to the state after |
| (617) 626-6855 | | | | three years.The employer is further required in |
| State of Massachusetts taxable wage base for | | | | Massachusetts to keep a record of the wages |
| unemployment purposes is wages up to | | | | abandoned and turned over to the state for a |
| $14,000.00.Massachusetts requires Magnetic media | | | | period of 5 years.Massachusetts's payroll law |
| reporting of quarterly wage reporting if the | | | | mandates no more than $4.125 may be used as a |
| employer has at least 250 employees that they | | | | tip credit.In Massachusetts the payroll laws |
| are reporting that quarter.Unemployment records | | | | covering mandatory rest or meal breaks are only |
| must be retained in Massachusetts for a minimum | | | | that all employees must have 30 minutes rest |
| period of four years. This information generally | | | | after six hours of work.Massachusetts's statute |
| includes: name; social security number; dates of | | | | requires that wage and hour records be kept for |
| hire, rehire and termination; wages by period; | | | | a period of not less than two years. These |
| payroll pay periods and pay dates; date and | | | | records will normally consist of at least the |
| circumstances of termination.The Massachusetts | | | | information required under FLSA.The |
| State Agency charged with enforcing the state | | | | Massachusetts agency charged with enforcing |
| wage and hour laws is:Department of Labor and | | | | Child Support Orders and laws is:Massachusetts |
| Industries | | | | Department of Revenue |
| Fair Labor and Business Practices Division | | | | Child Support Enforcement Division |
| 200 Portland St. | | | | 51 Sleeper St. |
| Boston, MA 02114 | | | | P.O. Box 9492 |
| (617) 727-3465 | | | | Boston, MA 02205-9492 |
| minimum wage in Massachusetts is $6.75 per | | | | (800) 332-2733 |
| hour.The general provision in Massachusetts | | | | has the following provisions for child support |
| concerning paying overtime in a non-FLSA | | | | deductions:When to start Withholding? Next |
| covered employer is one and one half times | | | | payday more than 3 days after notice. |
| regular rate after 40-hour week.Massachusetts | | | | When to send Payment? Within 3 days of |
| State new hire reporting requirements are that | | | | Payday. |
| every employer must report every new hire and | | | | When to send Termination Notice? Within 3 days |
| rehire and contractors over $600. The employer | | | | of payday. |
| must report the federally required elements | | | | Maximum Administrative Fee? $1 per payment. |
| of:Employee's name | | | | Withholding Limits? Federal Rules under CCPA. |
| date of hire or contract | | | | Please note that this article is not updated for |
| Employee's address | | | | changes that can and will happen from time to |
| Employee's social security number | | | | time.Charles J. Read, CPA has been in the payroll, |
| Employer's name | | | | accounting and tax business for 30 years, the last |
| Employers address | | | | fifteen in private practice. Mr. Read is the author |
| Employer's Federal Employer Identification | | | | of "How to Start a New Business".For Professional |
| Number (EIN) This information must be reported | | | | Payroll services at a Budget Price go to a |
| within 14 days of the hiring or rehiring. | | | | Paperless Payroll Company.Go to For a full service |
| The information can be sent as a W4 or | | | | payroll service bureau with CPA's on staff.See an |
| equivalent by mail, fax or electronically. | | | | excerpt of Mr. Read's interviews from William |
| There is a $25.00 penalty for a late report and | | | | Shatners "Heartbeat of America" television show |
| $500 for conspiracy in Massachusetts.The | | | | on the websites linked above. |