Massachusetts registration and tax info

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How to pay employees in a new state: Get registered

To pay employees in a state where you’ve never operated or paid people before, you must register with the relevant state tax agencies. This lets you pay and file the taxes you and your employees are liable for.

Watch this quick tutorial to learn more.

Let us register for you

Gusto partners with CorpNet to help you register your business in new states.

How it works

Once a work address has been added in a new state and a new employee has been hired and assigned a work address in that state, you can get registration assistance in Gusto.

Pricing varies by state—get started below and during step 4, you'll review the price, process, and estimated timeline to completion.

Here’s a snapshot of the process:

We’ll collect some basic business information from you.
Gusto and CorpNet will check the information for accuracy.
Your registration application(s) are usually submitted within 3-5 business days.
Check the mail for registration info—the state will typically send your tax account numbers and rates to you directly.

CorpNet can walk you through entering any info that they themselves do not enter in Gusto on your behalf.

Important reminder: Some state agencies require that Gusto have third-party access (TPA) to your account to file and pay taxes on your behalf—in most cases, CorpNet does not give Gusto this access, so you'll need to do so on your own after registration is complete. For the states you do business in, check out our state registration articles to determine if TPA is required, and how you can set it up on your own.

Get started with state tax registration

Sign in to Gusto as an admin.
Click the Taxes & compliance section and select Tax setup.
Under “[State name] Tax Setup”, click Have us register for you.
- The state you want to register in will only appear in this location once a work address has been added in a new state and an employee has been assigned a work address in that state.
Review the price, process, and estimated timeline to completion.
- We will not charge you the registration service fee until you send us your order.
Click Continue.
Answer a couple eligibility questions.
- Note: Gusto can only register for you if you don't yet have a state account already.
Click Save & continue.
Enter some company information.
- We’ll pre-populate the information we already have.
Click Save & continue.
Tell us about your responsible party–this is the person who is to be held accountable for the company’s good standing and a point of contact within the organization for tax purposes.
- If you're a nonprofit and run into any issues, check out our FAQ section below for more information.
Click Save & continue.
Enter some state-specific operational information.
Click Save and continue.
Review all information thoroughly–if any information is incorrect, it may delay the process.
- Heads up: State and local agencies may charge additional fees and increase the estimated turnaround time shown. CorpNet will let you know if that happens.
Check the box to acknowledge all info is accurate and you agree to the Terms of Service.
Click Send registration order.

After you send your order, we’ll email you with status updates and add your order total to your next monthly invoice.

Check the status of your order

When your order is complete, you’ll receive emails from both Gusto and CorpNet. They’ll detail the next steps which include:

Reviewing registration details
Any other state-specific instructions

Before your order is completed, you can use the link in the state registration confirmation email from Gusto to check the status of your order.

You can also check the status in your Gusto account:

Head to the Taxes & compliance section and select Tax setup.
Scroll to the state's headline.
Click Check the status of your registration.

Cancel your order

If your order is still in progress, you can cancel from your Gusto account:

Head to the Taxes & compliance section and select Tax setup.
Scroll to the state's headline.
Click Check the status of your registration.
On the right-side of the page, under "Changed your mind?", click Cancel your order.
Let us know why you're canceling.
Click Cancel your order.

If you were already charged, you'll automatically receive a refund within a few business days.

FAQs

Q: Can I run payroll for my employees before my registration is complete?

A: In most cases, you can run payroll before all state tax information is added in Gusto. As long as the info that is immediately required is completed—typically your tax rate(s) and deposit frequency—you'll be able to run payroll.

Important reminders

Until we have all tax account numbers, we're unable to submit payments and filings on your behalf.
If you run payroll before you've completed registration with the necessary agencies and entered the info in Gusto, you may get agency-notices as a result of late tax payments/filings.
- Any penalty or interest that may occur is the company's responsibility to pay.

If you’re registering in a state where there is no income tax withheld, you can use the state-specific “new employer rate” in this article until you receive your company-assigned rate from the agency.

Q: Can I use Gusto to register in a new state if I don't have a Federal Employer Identification Number (FEIN) yet, or if the business is undergoing a merger or acquisition?

A: No–you must have a FEIN entered in Gusto to order a state tax registration.

If your company is going through a merger or being acquired, CorpNet cannot assist with registration. Work with your tax advisor and state agencies directly to navigate this change and register your business.

Q: Where can I see all my tax information?

A: You can see all tax details in the following locations:

Gusto–head to the Taxes & compliance and select Tax setup, and scroll to the applicable state tax setup.
CorpNet–create a CorpNet account and login at any time to review information.
State online account–once you’ve gained access to your agency accounts, your tax details will also be available there.
Some agencies issue tax details by mail. If this is the case, CorpNet will notify you, and you'll need to enter this information into Gusto directly.

Gusto’s state tax registration service does not contain tax, legal, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer, HR expert, or accountant for specific guidance.

Q: What if I'm not liable for unemployment yet (referring to the minimum wage threshold in some states)?

A: In order for CorpNet to start the registration process for an unemployment account number before you're liable, you can:

Use today’s date as the first date the employee(s) in the new state will be paid.
Enter the start date of the quarter you expect the employee(s) to first make $1500.

Q: Can I register with CorpNet if the responsible party is based internationally and does not have an ITIN/SSN?

A: CorpNet may be able to assist directly—reach out to [email protected] or call 1(888) 449-2638.

Q: My company is a nonprofit—why can't I enter 0% in the responsible party section, or add a commercial owner?

A: Some states have a 1% minimum for the responsible party ownership percentage. Those states are: ID, KS, MN, OH, SC, DC, DE, MD, NJ, NY, and RI. Registration orders will need to be placed directly through CorpNet, outside of Gusto, or you'll need to register directly with the agency yourself.

Some states require that an individual owner be listed on the account. If you're a non-profit and not sure how to proceed, contact CorpNet directly at [email protected] or call 1(888) 449-2638.

Q: Does CorpNet help with giving Gusto any required third-party access (TPA) needed to file and pay taxes?

A: Some state agencies require that Gusto have third-party access (TPA) to your account to file and pay taxes on your behalf—in most cases, CorpNet does not give Gusto this access, so you'll need to do so on your own after registration is complete. For the states you do business in, check out our state registration articles to determine if TPA is required, and how you can set it up on your own.

Q: Does CorpNet help with state tax account closures?

A: No—you'll need to close the tax account on your own.

Click the dropdowns below to learn how to register with state agencies.

Massachusetts tax agencies

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

Begin your business registration on the MassTax Connect website.
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)—learn more about PFML here.
Third-party authorization of Gusto is required for this agency so we can pay and file your taxes—grant 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

Sign in to Gusto.
Click the Taxes & compliance section and select Tax setup.
Scroll to "Massachusetts Tax Setup", and click Manage taxes.
Click the blue edit pen.
Enter your Withholding Account ID.
- We recommend adding your MA withholding ID. The state currently accepts either the company’s federal identification number (FEIN) or MA withholding account ID, but the agency has indicated that in the future they will not accept payments and filings with FEINs.
Click yes or no if you're liable for the Paid Family and Medical Leave tax.
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.
Indicate Yes, I have already registered under "Registered with Commonwealth of Massachusetts?"
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:

Sign in to your MassTaxConnect account.
Click the Add an account type/new location hyperlink under the 'I Want To' section.
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.

State unemployment insurance tax (SUI) registration and EMAC instructions

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

Register for state unemployment insurance tax

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.
Enter the requested tax information you receive in Gusto—more information below.
Third-party authorization of Gusto is required for this agency so we can pay and file your taxes—grant 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:

Click the Taxes & compliance section and select Tax setup.
Scroll to the "Massachusetts Tax Setup" headline and select Manage taxes.
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.
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.
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.

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:

Click the Taxes & compliance section and select Tax setup.
Scroll to "Massachusetts Tax Setup", and click Manage Taxes.
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:

Click the Taxes & compliance section and select Tax setup.
Scroll to "Massachusetts Tax Setup", and click Manage Taxes.
Navigate to "Employer Medical Assistance Contribution" and select Not exempt.
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.

MA Paid Family and Medical Leave (PFML) info

Employers register for withholding (income) tax and PFML at the same time.

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.

Regardless of the company size, the employee contribution tax rate is 0.318% for 2023 (up to the Social Security wage base). For 2024, this increases to 0.46%.

Gusto withholds deductions from employee wages, but not contractors—more info about contractors can be found below.
Employers have the option to cover some or all of their employees’ PFML deductions—learn how below.

Employers with 25 or more workers (employees and certain 1099 workers) are required to pay an employer share of 0.312% for 2023. In 2024, this will increase to 0.42%.

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.

Click here for more information about MA PFML.

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

Click the Taxes & compliance section and select Tax setup.
Under "Massachusetts Tax Setup", click Manage Taxes.
Under "State Tax Settings", click the blue edit next to "Required to pay PFML employer portion?".
Select either Yes if you owe this tax, or No, if you are not liable.
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.

Cover a percentage of your employees' PFML deductions

First, a few reminders:

These settings will be applied for all employees in the state.
The settings go into effect the quarter following the one in which edits were made.
- Example: If you make an edit in July (during Q3), the company will start covering employee-deductions starting October 1 (beginning of Q4).
  - In the meantime, you can issue non-taxable reimbursements at the end of the quarter to repay all or a part of the amount(s) deducted from employees.
These settings only apply for PFML deductions in MA.

Set the percentage of employee-deductions for PFML you'd like to cover:

Click the Taxes & compliance section and select Tax setup.
Under "Massachusetts Tax Setup", click Manage Taxes.
Under "State Tax Settings", next to "PFML employee portion", click the blue edit.
Enter the percentage you'd like to cover.
Click Save.

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.

Find account numbers and rate info (if you're already registered)

If you've already registered in the state, you'll need to enter your tax account details in Gusto in order to pay employees.

You'll need to be registered with one or more of the below agencies in order for Gusto to file and pay taxes on your behalf:

Massachusetts Department of Revenue (DOR) - income tax withholding and paid family medical leave
Commonwealth of Massachusetts - unemployment tax and EMAC

If you still need to register, click the Register a company with the state dropdown above in this article.

Find your withholding tax account number, filing frequency, and set up paid family medical leave

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) or MA Withholding Account ID.

The Department of Revenue currently accepts both numbers when we file. However we recommend entering your MA Withholding Account ID since the agency has indicated that they will not accept payments and filings with FEINs in the future.

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—instructions can be found in the PFML section of this article.

Find your unemployment account number, rate, and get EMAC instructions

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

Click the Taxes & compliance section and select Tax setup.
Scroll to "Massachusetts Tax Setup", and click Manage Taxes.
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:

Click the Taxes & compliance section and select Tax setup.
Scroll to "Massachusetts Tax Setup", and click Manage Taxes.
Navigate to "Employer Medical Assistance Contribution" and select Not exempt.
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

Enter the tax account information in Gusto

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

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

How to authorize Gusto with Massachusetts agencies

Learn how to authorize Gusto as your third-party agent (TPA) for the agencies below.

Authorizing Gusto with the MA Department of Revenue

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.

Sign in to your MassTaxConnect account
Select Manage My Profile.
Go to the More tab.
In the “Third Party Access” section, select View Access Requests From Third Parties.
You’ll see Gusto’s access request. Select Approve.
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
Select Next
On the “Summary” page, review the request and click Submit.
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.

Authorizing Gusto with the MA Department of Unemployment Assistance

Gusto cannot pay or file taxes on your behalf until you give us access—there are two ways to give us the access we'll need:

By completing the steps below before a request for access comes from Gusto, or;
Responding to Gusto's request for access in your online portal.

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

Give Gusto third-party access proactively—no pending “request” for access in portal

If you have questions along the way, or run into any issues, watch this video created by the agency.

Sign in to your Commonwealth of Massachusetts account.
Click the Additional Services tab.
Under the “Access management Panel”, select Manage third party admin access.
- Here, any current or historic TPA access is displayed—if there is no “Access End” date, the listed TPA is current.
- Gusto's TPA information will show as:
  - Name: ZenPayroll Inc.
  - Agent ID: 102976
To add Gusto as your Third Party Administrator, in the top-right of the panel, click Add Third Party administrator.
In the “Agent ID” field, enter Gusto's agent ID: 102976.
Select Next.
Select the roles you’d like to grant access to—we'll need access to "File wage reports and make payments".
- We do not need access to "Perform benefit charges protests" or "Wage and separation mailing".
Review and submit the request.
- A confirmation page will appear letting you know that the request has been submitted.
Sign in to Gusto to let us know you've granted 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.

Responding to Gusto's request for access in the agency portal

If you have questions along the way, or run into any issues, watch this video created by the agency.

Sign in to your Commonwealth of Massachusetts account.
Click into the Action center tab.
If we've already requested access from you, the first panel will display an action item that shows “Respond to a Third Party Access Request”.
Click the hyperlink that says Click here to respond to a third party access request.
- You will be brought to a new page to review the Third Party Access request, it should show:
  - Third party name: ZenPayroll Inc.
  - Third party ID: 102976.
  - Third Party email: [email protected].
Select Yes, and then click Next.
Select the roles you’d like to grant access to—we'll need access to "File wage reports and pay".
- We do not need access to "Benefit charges view or protest" or "Wage and separation mailing".
Select Next.
Confirm you would like to grant access, and click Submit.
- A confirmation page will appear letting you know that the request has been submitted.

Troubleshoot Department of Unemployment Assistance authorization issues

Verify that the following information you have entered into Gusto matches what is on file with the MA Department of Unemployment Assistance:

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

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

Forms we file in Massachusetts

Employer’s Return of Income Taxes Withheld (M-941)*
Reconciliation of Massachusetts Income Taxes Withheld for Employers (M-3)
Wage and Tax Statement (State W2)
Paid Family & Medical Leave Quarterly Filings
Quarterly Employment and Wage Detail Report (SUI, EMAC, and workforce training fund)
MA New Hire Report

Where to find the forms available in your account

Head to the Taxes & compliance section and select Tax documents.

Use the tabs on the page to toggle between federal, state, W-2, and 1099 forms.

Asterisk info—only if applicable

Filings marked with an asterisk (*) will not appear in your Tax documents tab—these are coupons, payment vouchers, or other forms that are filed electronically.

You can confirm tax payments were made by running an agency payments report.

Agency websites and contact info

Massachusetts Department of Revenue (617) 887-6367
Massachusetts Department of Unemployment Assistance (617) 626-5075

Need to close or reopen a tax account? Head to our article on closing and reopening a state or local tax account.