Payroll Massachusetts, Unique Aspects of Massachusetts Payroll Law and Practice

The Massachusetts State Agency that overseesbe sent as a W4 or equivalent by mail, fax or
the collection and reporting of State income taxeselectronically. There is a $25.00 penalty for a late
deducted from payroll checks is: Department ofreport and $500 for conspiracy in Massachusetts.
Revenue 51 Sleeper St. Boston, MA 02205 (617)The Massachusetts new hire-reporting agency can
887-6367 (800) 392-6089 (in state)be reached at 800-332-2733 or 617-626-4154 or
Massachusetts allows the use of the federal W-4on the web at Massachusetts does not allow
form if exemptions claimed are the same forcompulsory direct deposit. Massachusetts requires
state and federal. Otherwise, you must use "M4the following information on an employee's pay
Massachusetts Employee's Withholding Exemptionstub: Gross and Net Earnings Employer's and
Certificate" for Massachusetts income taxemployee's name. payment date amount and
withholding. Not all states allow salary reductionsnature of deductions increases straight time and
made under Section 125 cafeteria plans or 401(k)overtime pay hours worked itemized deductions
to be treated in the same manner as the IRSMassachusetts requires that employee be paid
code allows. In Massachusetts cafeteria plans arebiweekly or weekly; semimonthly or biweekly for
not taxable for income tax calculation; taxable forFLSA-exempts or salaried employees (monthly if
unemployment insurance purposes. 401(k) planthey agree). Massachusetts requires that the lag
deferrals are not taxable for income taxes;time between the end of the pay period and the
taxable for unemployment purposes. Inpayment of wages to the employee not exceed
Massachusetts supplemental wages are requiredsix days if workweek is 5 or 6 days; 7 days
to be aggregated for the state income taxafter pay period if workweek is 7 days or less
withholding calculation. You must file yourthan 5 days. Massachusetts payroll law requires
Massachusetts State W-2s by magnetic media ifthat involuntarily terminated employees must be
you are required to file your federal W-2s bypaid their final pay immediately and that voluntarily
magnetic media. The Massachusetts Stateterminated employees must be paid their final pay
Unemployment Insurance Agency is: Division ofby the next regular payday (if there is none, the
Employment Security Charles F. Hurley Bldg. 19next Saturday) or by mail if employee requests it.
Staniford St., 5th Fl. DET Boston, MA 02114-2589Deceased employee's wages of $100 must be
(617) 626-6855 The State of Massachusettspaid to the surviving spouse, adult child, or parent
taxable wage base for unemployment purposes is(in that order) 30 days after death and if there is
wages up to $14,000.00. Massachusetts requiresno will. Escheat laws in Massachusetts require that
Magnetic media reporting of quarterly wageunclaimed wages be paid over to the state after
reporting if the employer has at least 250three years. The employer is further required in
employees that they are reporting that quarter.Massachusetts to keep a record of the wages
Unemployment records must be retained inabandoned and turned over to the state for a
Massachusetts for a minimum period of fourperiod of 5 years. Massachusetts's payroll law
years. This information generally includes: name;mandates no more than $4.125 may be used as a
social security number; dates of hire, rehire andtip credit. In Massachusetts the payroll laws
termination; wages by period; payroll pay periodscovering mandatory rest or meal breaks are only
and pay dates; date and circumstances ofthat all employees must have 30 minutes rest
termination. The Massachusetts State Agencyafter six hours of work. Massachusetts's statute
charged with enforcing the state wage and hourrequires that wage and hour records be kept for
laws is: Department of Labor and Industries Faira period of not less than two years. These
Labor and Business Practices Division 200 Portlandrecords will normally consist of at least the
St. Boston, MA 02114 (617) 727-3465 Theinformation required under FLSA. The
minimum wage in Massachusetts is $6.75 per hour.Massachusetts agency charged with enforcing
The general provision in Massachusetts concerningChild Support Orders and laws is: Massachusetts
paying overtime in a non-FLSA covered employerDepartment of Revenue Child Support
is one and one half times regular rate afterEnforcement Division 51 Sleeper St. P.O. Box 9492
40-hour week. Massachusetts State new hireBoston, MA 02205-9492 (800) 332-2733
reporting requirements are that every employerMassachusetts has the following provisions for
must report every new hire and rehire andchild support deductions: When to start
contractors over $600. The employer mustWithholding? Next payday more than 3 days after
report the federally required elements of:notice. When to send Payment? Within 3 days of
Employee's name date of hire or contractPayday. When to send Termination Notice? Within
Employee's address Employee's social security3 days of payday. Maximum Administrative Fee?
number Employer's name Employers address$1 per payment. Withholding Limits? Federal Rules
Employer's Federal Employer Identification Numberunder CCPA. Please note that this article is not
(EIN) This information must be reported within 14updated for changes that can and will happen
days of the hiring or rehiring. The information canfrom time to time.