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Taxes
Massachusetts Payroll Taxes 2026: Complete Overview for Employers
Massachusetts flat 5% (+ 4% surtax on income over $1M) income tax, SUI on $15,000, and all employer obligations.
Practical, accurate resources for Massachusetts small business owners — covering payroll taxes, labor laws, and compliance. Written by the payroll professionals at Pacific Data Services.
Massachusetts flat 5% (+ 4% surtax on income over $1M) income tax, SUI on $15,000, and all employer obligations.
How to register with Massachusetts Department of Revenue and Massachusetts Executive Office of Labor and Workforce Development as a new Massachusetts employer.
New employer rate 2.42%, experienced range 0.94%–14.37%, wage base $15,000.
Massachusetts minimum wage is $15.00/hr. Massachusetts’s minimum wage is $15.00/hr. Tipped employees may be paid $6.75/hr.
Weekly or bi-weekly pay required. Final pay: Involuntarily terminated employees must receive final pay on the day of discharge. Employees who resign are paid on the next regular payday..
FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown.
EIN, state registration, withholding setup, new hire reporting — complete checklist.
IRS classification rules, Massachusetts-specific considerations, and misclassification penalties.
IRS lookback period, deposit thresholds, next-day rule, EFTPS, and penalties.
Federal and Massachusetts new hire reporting requirements, deadlines, and penalties.
FLSA, IRS, and Massachusetts recordkeeping — what to keep, how long, and why.
ALE threshold, penalties, 1094-C/1095-C filing, small business exemption.
Misclassifying workers, wrong withholding, missed deposits — mistakes that add up fast.
Gusto vs Paychex vs QuickBooks vs ADP for Massachusetts small businesses.
Federal OT after 40 hrs/week, Massachusetts overtime rules, exemptions, salary thresholds.