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Version: 1.7.3

Massachusetts Payroll Tax Compliance

Employers in Massachusetts must meet three key payroll compliance obligations: state income tax withholding, unemployment insurance (UI), and new hire reporting.

Each requirement comes with its own forms, deadlines, and reporting rules established by state agencies. The sections below provide a clear overview of these obligations.

Massachusetts Withholding Tax Requirements​

Massachusetts employers are required to withhold state income tax from employee wages and file returns with the Massachusetts Department of Revenue (DOR).

The state requires Form M-941 to report Massachusetts income tax withheld.

  • Required even if no Massachusetts income tax was withheld (zero return).

  • Filing frequency depends on annual withholding liability.

    • Quarterly (under $1,200/year): due April 30, July 31, October 31, and January 31.

    • Monthly ($1,201-$25,000/year): due by the 15th of the following month (except for March, June, September, and December — due the last day of the following month).

    • Weekly/Depository (over $25,000/year): payments due within 3 business days after the 7th, 15th, 22nd, and last day of each month.

Note:

TaxBandits API currently supports the automation of M-941. See how it works

Massachusetts Unemployment Insurance (UI) Requirements​

Employers in Massachusetts are required to pay unemployment insurance taxes, administered by the Massachusetts Department of Unemployment Assistance (DUA).

The state requires a Quarterly Wage and Employment Detail Report to report unemployment wages and contributions.

  • Reports total wages, taxable wages, and UI contributions due.

  • Due quarterly on April 30, July 31, October 31, and January 31.

  • Employers must file even if no wages were paid (zero wage reports).

Massachusetts New Hire Reporting​

Employers must report all newly hired and rehired employees to the Massachusetts Department of Revenue (DOR) within 14 days of hire. This reporting helps the state enforce child support obligations and prevent unemployment insurance fraud.