Massachusetts registration and tax info

• Massachusetts Department of Revenue (DOR) - income tax withholding and paid family medical leave
  • Accessed via the Commonwealth of Massachusetts
• Department of Unemployment Assistance - unemployment tax and EMAC

Register for a withholding and paid family medical leave account in Massachusetts

1. Begin your business registration on the MassTax Connect website.
2. Click Next, and follow the remaining instructions to register for both:
   • Employer withholding
     • The DOR accepts using both your FEIN and another format (WTH-000...) to register.
   • Paid Family and Medical Leave (PFML).
3. Third party authorization of Gusto is required for this agency so we can pay and file your taxes. See the related dropdown below for more information on granting us the access we'll need.

After you register with the department of revenue (DOR), you'll receive an account ID and company-specific tax filing frequency. If you have questions about registration, contact the DOR directly at (617) 887-6367.

Enter the tax account information in Gusto

1. Sign in to Gusto.
2. Click the Taxes & compliance section and select Tax setup.
3. Scroll to "Massachusetts Tax Setup", and click Manage taxes.
4. Click the blue edit pen.
5. You do not need to enter a company-specific withholding account number in Gusto for us to file and pay taxes on your behalf—we use your federal identification number (FEIN).
6. Click yes or no if you're liable for Paid Family and Medical Leave Tax.
7. Update your filing frequency with your agency-provided withholding tax filing frequency.
   
   • Don't have your filing frequency yet? Enter the fastest schedule option until you receive your company-assigned filing frequency. As soon as you receive it, update the information in Gusto in the same location. 
8. Indicate Yes, I have already registered under "Registered with Commonwealth of Massachusetts?"
9. Enter your assigned Paid Family and Medical Leave Account ID in the designated field.
   • Example: (PFM-000…)

Troubleshoot withholding registration issues

If you've signed up for an account on MassTaxConnect but haven’t yet registered for withholding and PFML or been assigned a WTH account ID:

1. Sign in to your MassTaxConnect account.
2. Click the Add an account type/new location hyperlink under the 'I Want To' section.
3. All tax types available will be listed—if not already selected, select both:
   • Employer Withholding tax and/or 
   • Paid Family and Medical Leave

If you already have a Massachusetts withholding account number that starts with a “WTH,” but you haven't had active payrolls in Massachusetts recently, you may need to call the DOR at (617) 887-6367, Option 4, to reactivate your WTH Account ID. 

Massachusetts Paid Family & Medical Leave (PFML)—let us know if you're subject to the employer tax.

Gusto will withhold both the employee and employer amounts (if applicable) and file to the MA Department of Family and Medical Leave at the end of each quarter.

• For a full breakdown and added detail on the Massachusetts family and medical leave responsibility, check out this agency overview. 

The employee contribution tax rate is 0.378% (up to the Social Security wage base).

• Gusto withholds deductions from employee wages, but not contractors—more info about contractors can be found below. 
• We do not currently have an option for employers to cover any portion of their employees’ PFML deductions.

Employers with 25 or more workers (employees and certain 1099 workers) are required to pay an employer share of 0.372%.

• Employer contribution requirements vary based on company size—if you're uncertain if the company is subject, visit the MA PFML calculator.
• The employer portion of MA PFML will be deducted at the end of each quarter—we’ll notify you of the amount before any deductions happen.
  • Employer contributions collected will be based on employee's wages only, not contractor's. More info about contractors can be found below.

Let Gusto know whether you're subject or not subject to PFML

1. Click the Taxes & compliance section and select Tax setup.
2. Under "Massachusetts Tax Setup", click Manage Taxes.
3. Under "State Tax Settings", click the blue edit next to "Paid Family and Medical Leave Tax (MA PFML) Employer Liability?".
4. Select either Yes if you owe this tax, or No if you are exempt.
5. MA assigns an account number for this program—if you're subject, click the edit button next to "Paid Family and Medical Leave Account ID" and enter your assigned account number.

Click here for more information about MA PFML.

Contractors and PFML

Covered Individuals under the MA PFML program include W-2 employees and some qualified 1099 contractors that perform services within your trade or business.

• Independent contractors who meet the qualifications in this three-part test are not covered individuals under the MA PFML program. 

Gusto does not support tax withholding for 1099 contractors. If you have a contractor that should be included in the MA PFML program under the agency’s definition:

• Withhold PFML for the individual outside of Gusto and; 
• Submit a separate file and payment for contractor premium-withholdings.

Private plans and PFML

Private plans are not supported in Gusto, but if your plan exceeds MA PFML standards, you can set up an employer exemption in your Gusto account. 

If you get stuck registering, follow the DUA’s step-by-step registration instruction guide. 

Register for state unemployment insurance tax

1. Complete unemployment tax registration on the Commonwealth of Massachusetts website.
   • Once you've registered, you should instantly receive:
     • A UI Account Number
     • A UI Contribution Rate
     • You may also receive the new COVID-19 Recovery Assessment Tax (RAT) rate.
2. Enter the requested tax information you receive in Gusto—more information below. 
3. Third party authorization of Gusto is required for this agency so we can pay and file your taxes. See the related dropdown below for more information on granting us the access we'll need.

Enter the tax account information in Gusto

Once a valid Massachusetts work address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the "Massachusetts Tax Setup" headline and select Manage taxes.
3. Enter your unemployment account number.
   • If you need to update your account number: contact us from the Help section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.
4. Enter your unemployment contribution rate—do not include:
   • The Workforce Training Rate or
   • The COVID Recovery Assessment Rate
     • Your COVID Recovery Assessment Rate should be entered separately—learn more below.
     • Don't have your rate yet? You can enter the state-specific "New employer rate” from this article until you receive your agency-assigned rate.
       • If you need to update any rate at any time, follow these steps. 
5. Enter your COVID-19 Recovery Assessment Tax (RAT) rate—the tax was created to help keep employer rates low due to the impact COVID-19 has had on the unemployment insurance fund. Here are some things to know about the COVID-19 RAT:
   • It's in addition to your unemployment contribution rate—however, Massachusetts has recalculated all employer contribution rates (for standard unemployment insurance).
   • The effective date of the COVID-19 RAT rate was set back to January 1st, 2021, per the agency. 
   • The rate is between 0– 1.509%.

If you're unsure about your account numbers or rate(s), call the agency at (617) 626-5075. 

Troubleshoot Labor and Workforce Development authorization issues 

Some agencies require special authorization for Gusto to pay or file your taxes.

To ensure successful authorization, please verify that the following information you have entered into Gusto matches what is on file with the Massachusetts Labor and Workforce Development:

• Official company name/address
• FEIN - Federal Employment Identification Number
• Unemployment Account Number

Please make sure you have also assigned us the necessary roles as a Third Party Administrator (TPA)—more information in the related dropdown below.

If Gusto is having trouble gaining access to your account, troubleshoot with the agency by giving them a call at (617) 626-5075.

Massachusetts Employer Medical Assistance Contribution (EMAC)

Massachusetts (EMAC) is an additional contribution that some Massachusetts employers must pay—check if your company is subject to EMAC here.

The company is exempt

Your company is exempt from paying the EMAC if you’ve been an employer for 3 years or less. If you've been an employer in Massachusetts for 3 years or less, you can set your exemption in Gusto by following these steps:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to "Massachusetts Tax Setup", and click Manage Taxes.
3. Navigate to "Employer Medical Assistance Contribution" and select Exempt.

The company is not exempt/subject

Once you've been an employer in Massachusetts for 3 years, you may be subject to the tax.

You can update your status in Gusto by following these steps:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to "Massachusetts Tax Setup", and click Manage Taxes.
3. Navigate to "Employer Medical Assistance Contribution" and select Not exempt.
4. Select your EMAC rate.
   • Find the EMAC rate on the Notice of Employers Unemployment Insurance Rate you receive annually from the DUA. If you’re unsure, call the agency at (617) 626-5075.

Important

MA also exempts companies with an average of less than 6 employees. Gusto will determine if you exceed 6 employees at the end of each quarter and calculate the tax if applicable using the EMAC rate you've selected in Gusto. Do not apply an exemption in the now if you've been in business for longer than three years, but have fewer than six employees—we've got you covered. 

Follow the steps below to give Gusto access to your Massachusetts Department of Unemployment Assistance account. We cannot pay or file taxes on your behalf until you give us access.

Important: Only the master administrator of your tax account can grant Gusto access.

1. Sign in to your Commonwealth of Massachusetts account.
2. In the “TPA Home” section, select Account Maintenance.
3. Under “Account Maintenance,” select Third Party Administrator (TPA) Authorization.
4. To add Gusto as a Third Party Administrator, select New.
5. In the “TPA ID” field, enter “102976.”
6. Select Next.
7. In the “TPA Services Begin Date” field, enter the date you started using Gusto.
8. In the “Un-assigned Roles” section, make sure these checkboxes are selected:
   • Account Maintenance Update and Submit
   • Payments Update and Submit
   • Employment and Wage Detail Update and Submit
   • EMAC Supplement View Only 
9. Select Save.
10. Next, sign in to Gusto to let us know you've granted us access:
    • On your home page under "Things to do," click Give Gusto access to your Massachusetts Department of Unemployment Assistance account. 
    • Click the checkbox to indicate you've completed the task in your tax account. 
    • Click Submit. 

Give Gusto access to your Massachusetts Department of Revenue account

Once you grant Gusto access, we can monitor your Massachusetts tax account and update it automatically when we find out about changes, helping avoid notices, penalties, and interest.

Important: Only the master administrator of your tax account can grant Gusto access. 

1. Sign in to your MassTaxConnect account
2. Select Manage My Profile.
3. Go to the More tab.
4. In the “Third Party Access” section, select View Access Requests From Third Parties.
5. You’ll see Gusto’s access request. Select Approve.
6. For both of your Withholding and Paid Family and Medical Leave accounts:
   • In the “Give Rights” column of the table, select the checkbox 
   • In the “Granted Rights” column of the table, set the access type to All
7. Select Next
8. On the “Summary” page, review the request and click Submit.
9. Next, sign in to Gusto. to let us know you've granted us access:
   • On your home page under "Things to do," click Give Gusto access to your Massachusetts Department of Revenue account. 
   • Click the checkbox to indicate you've completed the task in your tax account. 
   • Click Submit. 

If you've previously registered with the Department of Revenue, the MA withholding account number that should be entered in Gusto is your federal employer identification number (FEIN).

• The Department of Revenue accepts another number format (WTH-000...), but we'll use your FEIN to file and pay taxes.

If you have questions about your account number or tax filing frequency, call the agency at (617) 887-6367. 

Don't have your filing frequency yet?

Enter the fastest schedule option until you receive your company-assigned filing frequency. As soon as you receive it, update the information in Gusto in the same location. 

Learn where to enter this information in Gusto in the related dropdown below.

Massachusetts Paid Family & Medical Leave (PFML)—let us know if you're subject to the employer tax.

The employee contribution tax rate is 0.378% (up to the Social Security wage base).

Employers with 25 or more workers (employees and certain 1099 workers) are required to pay an employer share of 0.372%. Employer contribution requirements vary based on company size. If you're not sure if the company is subject, visit the MA PFML calculator.

Let Gusto know whether you're subject or not subject to PFML:

1. Click the Taxes & compliance section and select Tax setup.
2. Under "Massachusetts Tax Setup", click Manage Taxes.
3. Under "State Tax Settings", click the blue edit next to "Paid Family and Medical Leave Tax (MA PFML) Employer Liability?".
4. Select either Yes if you owe this tax, or No if you are exempt.
5. MA assigns an account number for this program—if you're subject, click the edit button next to "Paid Family and Medical Leave Account ID" and enter your assigned account number.

Click here for more information about MA PFML.

Your Massachusetts UI Account Number and Contribution Rate appears on the notice that you receive from the Massachusetts Department of Unemployment Assistance (DUA) each year. You may also be subject to the new COVID-19 Recovery Assessment Tax (RAT) rate that will appear on the same notice.

If you're unsure about your account number or rate(s), call the agency at (617) 626-5075. 

Don't have your rate yet?

You can enter the state-specific "New employer rate” from this article until you receive your agency-assigned rate. Update the rate in Gusto as soon as you have your company-assigned rate. Learn where to enter this information in Gusto in the related dropdown below.

Massachusetts Employer Medical Assistance Contribution (EMAC)

Massachusetts (EMAC) is an additional contribution that some Massachusetts employers must pay—check if your company is subject to EMAC here.

The company is exempt

Your company is exempt from paying the EMAC if you’ve been an employer for 3 years or less. If you've been an employer in Massachusetts for 3 years or less, you can set your exemption in Gusto by following these steps:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to "Massachusetts Tax Setup", and click Manage Taxes.
3. Navigate to "Employer Medical Assistance Contribution" and select Exempt.

The company is not exempt/subject

Once you've been an employer in Massachusetts for 3 years, you may be subject to the tax.

You can update your status in Gusto by following these steps:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to "Massachusetts Tax Setup", and click Manage Taxes.
3. Navigate to "Employer Medical Assistance Contribution" and select Not exempt.
4. Select your EMAC rate.
   • Find the EMAC rate on the Notice of Employers Unemployment Insurance Rate you receive annually from the DUA. If you’re unsure, call the agency at (617) 626-5075.

Important

MA also exempts companies with an average of less than 6 employees. Gusto will determine if you exceed 6 employees at the end of each quarter and calculate the tax if applicable using the EMAC rate you've selected in Gusto. Do not apply an exemption in the now if you've been in business for longer than three years, but have fewer than six employees—we've got you covered. 

Follow the steps below to give Gusto access to your Massachusetts Department of Unemployment Assistance account. We cannot pay or file taxes on your behalf until you give us access.

Important: Only the master administrator of your tax account can grant Gusto access.

1. Sign in to your Commonwealth of Massachusetts account.
2. In the “TPA Home” section, select Account Maintenance.
3. Under “Account Maintenance,” select Third Party Administrator (TPA) Authorization.
4. To add Gusto as a Third Party Administrator, select New.
5. In the “TPA ID” field, enter “102976.”
6. Select Next.
7. In the “TPA Services Begin Date” field, enter the date you started using Gusto.
8. In the “Un-assigned Roles” section, make sure these checkboxes are selected:
   • Account Maintenance Update and Submit
   • Payments Update and Submit
   • Employment and Wage Detail Update and Submit
   • EMAC Supplement View Only 
9. Select Save.
10. Next, sign in to Gusto to let us know you've granted us access:
    • On your home page under "Things to do," click Give Gusto access to your Massachusetts Department of Unemployment Assistance account. 
    • Click the checkbox to indicate you've completed the task in your tax account. 
    • Click Submit. 

Give Gusto access to your Massachusetts Department of Revenue account

Once you grant Gusto access, we can monitor your Massachusetts tax account and update it automatically when we find out about changes, helping avoid notices, penalties, and interest.

Important: Only the master administrator of your tax account can grant Gusto access. 

1. Sign in to your MassTaxConnect account
2. Select Manage My Profile.
3. Go to the More tab.
4. In the “Third Party Access” section, select View Access Requests From Third Parties.
5. You’ll see Gusto’s access request. Select Approve.
6. For both of your Withholding and Paid Family and Medical Leave accounts:
   • In the “Give Rights” column of the table, select the checkbox 
   • In the “Granted Rights” column of the table, set the access type to All
7. Select Next
8. On the “Summary” page, review the request and click Submit.
9. Next, sign in to Gusto. to let us know you've granted us access:
   • On your home page under "Things to do," click Give Gusto access to your Massachusetts Department of Revenue account. 
   • Click the checkbox to indicate you've completed the task in your tax account. 
   • Click Submit. 

Once a valid Massachusetts address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the "Massachusetts Tax Setup" headline and select Manage taxes.
3. Enter the applicable account number(s) and rate(s).