Massachusetts payroll is the most complex in the country. We handle all of it.

Massachusetts levies a flat state income tax of 5%, with a surtax of 4% on income over $1 million (the 'Fair Share Amendment' enacted in 2022). For payroll purposes, most employees are subject to the 5% flat rate. Employers must withhold Massachusetts income tax and remit to the Massachusetts Department of Revenue. Massachusetts SUI is administered by the Department of Unemployment Assistance.

Massachusetts has a Paid Family and Medical Leave (PFML) program that requires both employer and employee payroll contributions. Employers must withhold the employee share and pay the employer portion, remitting quarterly to the Commonwealth. Massachusetts also has a mandatory earned sick time law covering all employers, and the Massachusetts Wage Act has some of the strictest enforcement provisions in the country, including treble damages for willful violations and strict final paycheck rules requiring immediate payment on discharge.

BEG manages Massachusetts payroll compliance: flat income tax withholding, PFML employer and employee contributions, earned sick time tracking, quarterly remittances and filings, SUI payments, new hire reporting, garnishment processing, and year-end W-2 production. Massachusetts's Wage Act penalties make payroll accuracy a legal risk management issue, not just an administrative one. BEG keeps your payroll compliant every cycle.