Massachusetts New Employer Information
Congratulations on your decision to become a new employer in Massachusetts! You will need a few things in place before you run your first payroll.
For help registering your business in Massachusetts, check out our partner, CorpNet.
Federal and State Tax Accounts
Federal Tax Accounts:
- Although it is not required, we recommend that register for this federal tax paying system. You can easily register online. This account will be helpful for you to make tax payments online or view whatever tax filings have been made on your behalf by Patriot if you are a Full Service Payroll customer.
- To find out more about the EFTPS, read our article, “What Is EFTPS?”
State of Massachusetts Tax Accounts:
- New employers will need to register their business online with the Massachusetts Department of Revenue. Registration will be be necessary for a state income tax (SIT) withholding account.
- You will also need to register for the Massachusetts PFML for paid family leave. You can register for Massachusetts PFML on the state website.
- Massachusetts new employers will also need to register online with the UI Employer Registration Portal for a state unemployment insurance (SUI) tax account once you have paid your employees. NOTE: You will not be able to get an EIN with the MA Labor and Workforce Development until after you have paid your first employee.
- For more information, visit the Massachusetts Labor and Workforce Development.
- The Massachusetts new employer SUTA rate for non-construction employers is 1.87% for 2024. The new employer SUTA rate for new construction employers is 3.76%.
- You will be assigned an unemployment tax rate (SUTA) every year based on your industry and experience rating.
- Massachusetts new employers are exempt from the EMAC (Employer Medical Assistance Contribution) for the first 3 years. For more information, visit the Massachusetts Office of Labor and Workforce Development.
State-mandated Requirements:
- You must have workers’ comp insurance if you have at least 1 employee in Massachusetts. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in Massachusetts here.
- Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, NEXT Insurance. You can get a free quote with NEXT here.
- Massachusetts’ state retirement plan program, CORE, is voluntary and available to nonprofits with 20 or fewer employees.
- Patriot has partnered with Vestwell to offer affordable retirement plans for small businesses that integrate with our payroll software. Learn more here.
Setting Up Your New Employee:
- Massachusetts employers are required by law to report all new hires within 14 days from the date of hire or rehire.
- Employers in Massachusetts can report new hires on Form NHR with the Department of Revenue. Fax the form to 617-376-3262 or report online with MassTaxConnect.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information, read our help article, “What Employers Should Know About Employee Payroll Records”
Let us know if you have any questions. We are here to help!
This is not an all-inclusive list and employers should contact their federal, state, and local government for a full list of compliances.
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