2025 YEAR END
Withholding
Withholding requirements
Employees must complete Form M-4, Massachusetts Employee’s Withholding Allowance Certificate.
Supplemental rate
Both the witholding rate and supplement rate are determined via the formula method.
State Unemployment Insurance (SUI)
Wage base
$15,000
Contributions
- General Range: Contribution rates for established employers range from 0.56% to 8.62%, depending on experience rating and the applicable rate schedule.
- New Employers:
- Non-construction industry: 2.13% (2025 rate under Schedule D)
- Construction industry: 5.45% (2025 rate based on industry average)
New employers pay a fixed rate for the first three calendar years before receiving an experience rating.
Employer Medical Assistance Contribution (EMAC)
- Employers with six or more employees must contribute to EMAC.
- Applies to the first $15,000 of each employee’s wages.
- Rates vary based on how long the employer has been subject to UI law:
- Years 1–3: Exempt
- Year 4: 0.12%
- Year 5: 0.24%
- Year 6+: 0.34%
More information
Labor
Minimum wage
$15.00
Termination Pay
- If an employee is discharged involuntarily, they must be paid in full on the day of discharge.
- If an employee resigns voluntarily, they must be paid by the next regular payday.
- This includes earned wages, accrued vacation time, and other compensation.
- Employers who violate this law may face treble damages (three times the unpaid amount), attorney fees, and litigation costs.
More information
- Tipped employees must earn at least $6.75/hour in direct wages, and their total earnings (wages + tips) must equal or exceed $15.00/hour.
- Agricultural workers have a lower minimum wage of $8.00/hour.
- No further increases are scheduled unless approved by legislation or ballot.
Earned Sick Time
- Most workers in Massachusetts can earn and use up to 40 hours of job-protected sick time per year.
- Sick time is accrued at a rate of 1 hour per 30 hours worked.
- Employers with 11 or more employees must provide paid sick time; smaller employers must provide unpaid sick time.
- Sick time can be used for:
- Personal illness or injury
- Medical appointments
- Caring for a child, spouse, parent, or spouse’s parent
- Domestic violence situations
- As of Nov 21, 2024, it also covers pregnancy loss, failed adoption/surrogacy, and assisted reproduction.
New Hire Filing
Reporting deadline
Within 14 days of employee hiring, rehiring, or returning to work.
Reporting online
Reporting by mail
Massachusetts Department of Revenue
P.O. Box 55141
Boston, MA 02205-5141
New hire reporting form
Child Support
Online payments
More information
Other
New employer registration
Local taxes
While Massachusetts does not impose local income taxes, local taxes like meals tax, room occupancy tax, and property tax may apply depending on your city or town.
Always check with your local municipality for business certificate and licensing requirements.
Reciprocal states
Massachusetts does not have reciprocal tax agreements with any other states.
However, residents can claim a credit for taxes paid to other states to avoid double taxation.
Disability insurance
Massachusetts does not require employers to provide private disability insurance.
Worker’s Compensation is mandatory for all employers.
Disability Income Insurance (DI) is voluntary and can be offered by employers or purchased individually.
Helpful links
Last Updated
09/19/2025
States
The information provided here should not be considered legal or accounting advice nor should it substitute for legal, accounting, and other professional advice. If you require legal or accounting advice, you should always consult your licensed attorney, accountant, or other professional to discuss the facts of your particular situation.
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