MASSACHUSETTS

Register for a withholding and paid family medical leave (PFML) account

For help getting your business started in Massachusetts, try these business resources.

Companies pay business taxes to the Department of Revenue through MassTaxConnect. When you register, you'll also be able to register for Paid Family and Medical Leave (PFML).

Register for withholding tax and PFML

1. Learn what you need to register your business with MassTaxConnect.
   • If you already have a MassTaxConnect account, learn how to add withholding and PFML below.
   • If you already have a MA withholding account that starts with “WTH”, but you haven't had recent payrolls in Massachusetts, you may need to reactivate your account. Call the Department of Revenue. at [phone], Option 4.
2. Select the most applicable option from the table of contents.
   • The agency has step-by-step instructions, screenshots, and video tutorials (in some cases) to help guide you.
3. You'll create a MassTaxConnect account.
4. Under "New to MassTaxConnect", click Sign up.
5. Click Register a Business.
   • If you need help, call the Department of Revenue at [phone].
6. Click Next, and follow the rest of the prompts to register for both:
   • Employer withholding
     • The DOR accepts using both your Federal Employer Identification Number (FEIN) and another format (WTH-000...) to register.
   • Paid Family and Medical Leave (PFML).
7. Give Pay-Net the third-party access (TPA) we need to pay and file your taxes.

After you register, you'll get your:

• Account ID, and;
• Filing frequency (tax deposit schedule).
  • These are assigned to your company by the agency.

Add withholding tax or PFML to a preexisting MassTaxConnect account

1. Sign in to your MassTaxConnect account.
2. Under the "I want to" section, click the hyperlink Add an account type/new location.
3. All tax types available will be listed. If not already selected, select both:
   • Employer Withholding tax
   • Paid Family and Medical Leave
   • Once registered, forward all Taxpayer ID and Rate information to Pay-Net.

MA Paid Family and Medical Leave (PFML) info

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

Pay-Net will withhold both the employee and employer amounts (if applicable) and file with 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.

Contributions

If you do not know if the company is subject, visit the MA PFML calculator.

Employers have the option to cover some or all of their employees’ PFML deductions. Employer contribution requirements vary based on company size.

Contribution rates:

• Employers with 25 or more covered individuals must pay an employer share of 0.46%. The employee is responsible for the remaining 0.42%.
• Employers with fewer than 25 covered individuals are not required to pay an employer share. The employee is responsible for the full 0.42% contribution.

Payroll deductions

• Pay-Net withholds deductions from employee wages, but not from contractor payments.
  • More info about contractors can be found below.
• 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 employees' wages only, not contractors'. More info about contractors can be found below.

Click here for more information about MA PFML.

Let Pay-Net know whether you're subject, or not subject, to PFML

Cover a percentage of your employees' PFML deductions

First, a few reminders:

• These settings will be applied for all employees in the state.
• These settings only apply for PFML deductions in MA.
• 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).
    • Until then, you can give non-taxable reimbursements at the end of the quarter to repay all or a part of the amount deducted from employees.

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. 

Pay-Net 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 Pay-Net and;
• Submit a separate file and payment for contractor premium-withholdings.