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New company registration in Massachusetts

Income tax withholding

Go to the MassTax Connect website and do the following:

  1. Click on Register a new taxpayer.  
  2. Click on Register a business.
  3. Click Next.
  4. Select I am registering a business, organization, or other entity.
  5. Click Next, and follow the remaining instructions to register for employer withholding and Paid Family and Medical Leave (PFML).

After you register with the DOR, you will receive an account ID and deposit schedule. For withholding, the DOR accepts both your FEIN and another format (WTH-000...). Gusto will use your FEIN.

For PFML, the DOR will assign an account ID number (PFM-000…). Gusto will need this number to file your PFML payments and returns.

If you have questions about this process, contact the DOR at (617) 887-6367.

Once you've registered for withholding and PFML:

  1. Sign in to Gusto.
  2. Go to the Company Details section.
  3. Scroll to "Massachusetts Tax Setup", and click Manage taxes.
  4. Click the blue edit pen.
  5. Update your Deposit Schedule with your agency-provided withholding tax deposit schedule.
  6. Click yes or no if you're liable for Paid Family and Medical Leave Tax.
  7. Indicate Yes, I have already registered under "Registered with Commonwealth of Massachusetts?"
  8. Enter your assigned Paid Family and Medical Leave Account ID in the designated field.

Troubleshooting 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.  Log 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, select 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. 

Add Gusto as a Third Party Administrator (TPA)

This step is highly recommended so Gusto can help resolve account issues with the agency, such as notices or letters you may receive. It only takes a few minutes and is completed 100% online. Please follow the instructions:

  1. Sign in to MassTaxConnect.
  2. Click the Settings hyperlink in the top right section of the Home panel.
  3. Click the Assign access rights to a third party hyperlink in the I Want To section.
  4. Select ZENPAYROLL (dba Gusto) from The Third Party Public Directory list that will display.
  5. Click the Next button to see a list of your tax accounts.
  6. Select Withholding Tax, and File and Pay under the Access Rights column.
  7. Click the Next button, review and then click the Submit button to confirm.

If you have questions about this process or if you’re unsure if someone from your company has already registered for a withholding account number, please contact the DOR at (617) 887-6367, Option 4, for assistance.

Unemployment tax

Go to the DUA website, click on Employer UI Online login and then Employer Registration on the top left. Once you have registered, you should instantly receive a UI Account Number and a UI Contribution Rate. 

  • UI Account Number: enter your new account number in the Company Details section of your account under the "Unemployment Account Number (DUA)" field.
  • UI Contribution Rate: when entering your UI Contribution Rate in Gusto, do not include the Workforce Training Rate. 

For more guidance, follow the DUA’s step-by-step registration instruction guide. If you're unsure about your rate, call the agency at (617) 626-5075. You can find the wage base for Massachusetts in this article.

Add Gusto as a Third Party Administrator (TPA)

This step is required for all Gusto clients, and gives us the permission to file and pay taxes on your behalf. It only takes a few minutes and is completed 100% online. Please follow the instructions:

  1. Go to the DUA online system.
  2. Click on Log In to UI Online for Employers. Log in with your User ID and password.
  3. Click Account Maintenance.
  4. Click on the Third Party Administrator (TPA) Authorization link.
  5. Click New at the bottom of the screen, and input Gusto’s TPA ID: 102976.
  6. Choose today’s day as the "Beginning Date", and leave "End Date" blank.
  7. Click Add Roles and select:
    • Account Maintenance, Update and Submit
    • Payments, Update and Submit
    • Employment and Wage Detail, Update and Submit
    • EMAC Supplement View Only 
    • Please DO NOT select Gusto for any of the following roles: 
      • Benefit Charges Protest Submission
      • Wage and Separation Mailing
      • Any View Only Roles Account Maintenance, Update and Submit

For further details, follow the DUA’s step-by-step instruction guide. To contact the DUA call (617) 626-5075. 

Once you've assigned Gusto authorization for your UI taxes, update your Gusto account to let us know:

  1. Go to the Company Details section of your account.
  2. Scroll to "Massachusetts Tax Setup", and click Manage Taxes.
  3. Click the blue edit pen.
  4. Update the TPA Authorization field to Yes, we finished setting Gusto as our TPA.

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. See step 5 of "Add Gusto as a TPA" above. If Gusto is having trouble gaining access to your account, please verify that the above information matches exactly what the agency has on file 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. Learn if your company is subject to EMAC here.

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 Company Details tab.
  2. Click Massachusetts Tax Setup.
  3. Click Manage Taxes
  4. Navigate to Employer Medical Assistance Contribution and select Exempt.

Not exempt/Subject

Once you have 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 Company Details tab. 
  2. Click Massachusetts Tax Setup.
  3. Click Manage Taxes.
  4. Navigate to Employer Medical Assistance Contribution and select Not exempt
  5. 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, you can learn more about EMAC here or verify your rate by calling the agency at (617) 626-5060.

Keep in mind: 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 if you've been in business for longer than three years, but have fewer than six employees right now.

Massachusetts Paid Family & Medical Leave (PFML)

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 you are subject, visit the MA PFML calculator.

To update in Gusto whether you are subject or not subject to PFML:

  1. Go to the Company Details section.
  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.

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.

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