Payroll Massachusetts, Unique Aspects of Massachusetts Payroll Law and Practice

The Massachusetts State Agency that overseesMassachusetts new hire-reporting agency can be
the collection and reporting of State income taxesreached at 800-332-2733 or 617-626-4154 or on
deducted from payroll checks is:Department ofthe web at does not allow compulsory direct
Revenuedeposit.Massachusetts requires the following
51 Sleeper St.information on an employee's pay stub:Gross and
Boston, MA 02205Net Earnings
(617) 887-6367Employer's and employee's name.
(800) 392-6089 (in state)payment date
allows the use of the federal W-4 form ifamount and nature of deductions
exemptions claimed are the same for state andincreases
federal. Otherwise, you must use "M4straight time and overtime pay
Massachusetts Employee's Withholding Exemptionhours worked
Certificate" for Massachusetts income taxitemized deductionsMassachusetts requires that
withholding.Not all states allow salary reductionsemployee 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 IRSsalaried employees (monthly if they
code allows. In Massachusetts cafeteria plans areagree).Massachusetts requires that the lag time
not taxable for income tax calculation; taxable forbetween the end of the pay period and the
unemployment insurance purposes. 401(k) planpayment 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.Inafter pay period if workweek is 7 days or less
Massachusetts supplemental wages are requiredthan 5 days.Massachusetts payroll law requires
to be aggregated for the state income taxthat involuntarily terminated employees must be
withholding calculation.You must file yourpaid their final pay immediately and that voluntarily
Massachusetts State W-2s by magnetic media ifterminated employees must be paid their final pay
you are required to file your federal W-2s byby the next regular payday (if there is none, the
magnetic media.The Massachusetts Statenext Saturday) or by mail if employee requests
Unemployment Insurance Agency is:Division ofit.Deceased employee's wages of $100 must be
Employment Securitypaid 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. DETno will.Escheat laws in Massachusetts require that
Boston, MA 02114-2589unclaimed wages be paid over to the state after
(617) 626-6855three years.The employer is further required in
State of Massachusetts taxable wage base forMassachusetts to keep a record of the wages
unemployment purposes is wages up toabandoned and turned over to the state for a
$14,000.00.Massachusetts requires Magnetic mediaperiod of 5 years.Massachusetts's payroll law
reporting of quarterly wage reporting if themandates no more than $4.125 may be used as a
employer has at least 250 employees that theytip credit.In Massachusetts the payroll laws
are reporting that quarter.Unemployment recordscovering mandatory rest or meal breaks are only
must be retained in Massachusetts for a minimumthat all employees must have 30 minutes rest
period of four years. This information generallyafter six hours of work.Massachusetts's statute
includes: name; social security number; dates ofrequires 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 andrecords will normally consist of at least the
circumstances of termination.The Massachusettsinformation required under FLSA.The
State Agency charged with enforcing the stateMassachusetts agency charged with enforcing
wage and hour laws is:Department of Labor andChild Support Orders and laws is:Massachusetts
IndustriesDepartment of Revenue
Fair Labor and Business Practices DivisionChild Support Enforcement Division
200 Portland St.51 Sleeper St.
Boston, MA 02114P.O. Box 9492
(617) 727-3465Boston, MA 02205-9492
minimum wage in Massachusetts is $6.75 per(800) 332-2733
hour.The general provision in Massachusettshas the following provisions for child support
concerning paying overtime in a non-FLSAdeductions:When to start Withholding? Next
covered employer is one and one half timespayday more than 3 days after notice.
regular rate after 40-hour week.MassachusettsWhen to send Payment? Within 3 days of
State new hire reporting requirements are thatPayday.
every employer must report every new hire andWhen to send Termination Notice? Within 3 days
rehire and contractors over $600. The employerof payday.
must report the federally required elementsMaximum Administrative Fee? $1 per payment.
of:Employee's nameWithholding Limits? Federal Rules under CCPA.
date of hire or contractPlease note that this article is not updated for
Employee's addresschanges that can and will happen from time to
Employee's social security numbertime.Charles J. Read, CPA has been in the payroll,
Employer's nameaccounting and tax business for 30 years, the last
Employers addressfifteen in private practice. Mr. Read is the author
Employer's Federal Employer Identificationof "How to Start a New Business".For Professional
Number (EIN) This information must be reportedPayroll 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 orpayroll 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 andShatners "Heartbeat of America" television show
$500 for conspiracy in Massachusetts.Theon the websites linked above.