Employer of Record for Massachusetts

Guide to Hiring Employees in Massachusetts

Your guide to hiring employees in Massachusetts, covering employment and labor laws, payroll, benefits, onboarding and taxes. You can also manage and pay your contractors in Massachusetts through Playroll.

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Capital City

Boston

Timezone

EST

(

GMT-5

)

Paid Leave

None

Income Tax

5%

Employer Tax

1.23% - 15.56%

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How to Hire Employees In Massachusetts

Hiring in Massachusetts for the first time can be challenging, especially with the state's complex employment laws. Whether you're hiring independent contractors, setting up a legal entity, partnering with a PEO, or using an Employer of Record (EOR), it's essential to understand the local employment landscape. Playroll's comprehensive guide is here to help, whether you're onboarding local talent or relocating team members.

Here are four primary ways companies can hire employees in Massachusetts:

  • Establishing a local entity: Creating a legal entity in Massachusetts allows for direct hiring, but it can be costly and time-consuming. However, it gives you full control over employment and reduces risk exposure.
  • Partnering with an Employer of Record (EOR): An EOR, like Playroll, takes on the legal responsibilities of employment, acting as the employer on your behalf. This option streamlines hiring, payroll, and compliance with Massachusetts’s labor laws, helping you hire in Massachusetts without navigating the complex legal landscape yourself.
  • Working with a Professional Employer Organization (PEO): A PEO, such as Playroll, co-employs your team, managing essential HR functions like payroll, benefits, and compliance. Partnering with a PEO ensures you meet Massachusetts’s labor regulations while offering competitive employee benefits.
  • Hiring independent contractors: Hiring independent contractors can be more cost-effective, but Massachusetts has strict contractor classification rules. Proper classification is essential to avoid penalties for misclassification when hiring in Massachusetts.

Complying with Massachusetts specific employment regulations and federal laws is critical to avoiding legal risks and costly fines. Our guide focuses on hiring in Massachusetts, employment compliance, and how Playroll’s services can support your business as you navigate the complexities of hiring in the state.

Good To Know

Massachusetts offers up to 26 weeks of paid leave for family or medical needs through a state program.

Employers with 11 or more employees must offer health insurance that meets minimum state requirements.

Known for its tech, education, and healthcare sectors, Massachusetts attracts a highly skilled workforce, particularly in Boston.

Key Things to Know About Hiring in Massachusetts

Do I need an EIN or Payroll Tax Number to Employ in Massachusetts

Employers in Massachusetts are required to have both a Federal Employer Identification Number (EIN) and a Massachusetts payroll tax number to hire employees and manage payroll. This enables them to comply with federal and state payroll tax obligations.

Working Hours in Massachusetts

Massachusetts law does not set a specific standard for full-time employment hours, which are determined based on federal guidelines. 

What is considered full-time employment in Massachusetts

There is no legal definition of "full-time" employment in Massachusetts. However, full-time employees work 35-40 hours per week. Employers are required to provide a 30-minute break to employees who work more than six consecutive hours.

Probation Period in Massachusetts

A probationary period is not required for private-sector employees.

Massachusetts Employment Laws for Hiring

Minimum wage in Massachusetts 

  • The minimum wage in Massachusetts is $15 per hour. Employees who receive tips must be paid a minimum of $6.75 per hour, provided that their tips bring their total earnings to at least $15 per hour.
  • Good to know: In the November 2024 election, Massachusetts voters will consider a ballot measure to gradually raise the tipped minimum wage to match the standard minimum wage by 2029. The measure also includes provisions for tip pooling across all employees.

Massachusetts Anti-Discrimination Laws

Massachusetts law prohibits employers from discriminating against employees or applicants based on specific protected characteristics. These protections cover hiring, firing, promotions, and other employment terms. Protected categories include:

  • Race and Color
  • Religious Beliefs
  • National Origin or Ancestry
  • Sex, Gender Identity, and Sexual Orientation
  • Age (for individuals 40 and older)
  • Disability (physical or mental impairment that substantially limits major life activities)
  • Marital Status
  • Military Status (including veteran status)
  • Genetic Information

Employers must provide reasonable accommodations for employees’ religious practices and disabilities unless doing so would impose an undue hardship on business operations.

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Onboarding New Hires in Massachusetts

We can help you get your new employee started in Massachusetts fast, with a minimum onboarding time from just 1-2 working days. Note that the timeline is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Playroll platform.

For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.

Please note that payroll cut-off dates can impact the actual first day of employment. Playroll’s payroll cut-off date is the 10th of the month, unless otherwise specified.

Payroll Services For Massachusetts

Employers are required to pay hourly, nonexempt employees on a weekly or biweekly basis. Salaried, exempt employees may be paid on a semi-monthly basis. With limited exceptions, only exempt employees may choose, if they prefer, to be paid monthly.

Looking to grow your team in Massachusetts?

Stay Compliant: Navigate Massachusetts’s complex labor laws with ease.

Affordable Solution: Reduce costs with a budget-friendly EOR option.

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Overview of Employment Taxes in Massachusetts

Is vacation leave mandatory in Massachusetts 

Massachusetts law does not require employers to offer either paid or unpaid vacation leave. However, if an employer chooses to provide vacation as a benefit, it must treat accrued vacation as earned wages. This means that any accrued, unused vacation time must be paid out upon termination of employment. Employers must also adhere to their own written vacation policies and cannot arbitrarily deny employees the right to use accrued leave.

What are Mandatory Leave Entitlements in Massachusetts Employers in Massachusetts are responsible for several tax contributions to support various state programs.

Employer Tax Contributions

These contributions include:

Employment Tax Type Tax Rate
Family and Medical Leave (Family leave) 0.0018
Family and Medical Leave (Medical leave) 0.007
Unemployment Insurance (UI) Varies , applied on first $15,000 of each employee’s wages
Workforce Training Fund 0.056% of eligible wages
Employer Medical Assistance Contribution (EMAC) Rates vary, applied on first $15,000 of wages

Employee Payroll Tax Contributions

These contributions include:

Employee Payroll Tax Contribution Tax Rate
Family and Medical Leave (Family leave) 0.0018
Family and Medical Leave (Medical leave) Up to 0.28%
State Income Tax 0.05
Federal Social Security As per federal legislation
Federal Medicare As per federal legislation

Tax Due Dates in Massachusetts 

In Georgia, the deadline for filing individual state income tax returns aligns with the federal deadline, typically on April 15. If April 15 falls on a weekend or federal holiday, the deadline is extended to the next business day.

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Massachusetts tailored to your needs.

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Benefit Requirements for Employers in Massachusetts

Employers in Massachusetts must comply with specific benefit requirements, particularly around health insurance, sick leave, and workers’ compensation. While not all benefits are mandatory, certain benefits are required by state law.

Are employers required to provide health insurance in Massachusetts 

Employers are not required by Massachusetts law to provide health insurance to employees, but they may face penalties under federal laws, such as the Affordable Care Act, if they do not offer coverage and have 50 or more full-time employees. For companies that offer health insurance, Massachusetts mandates that coverage meet minimum creditable coverage standards to avoid state penalties for employees.

Do part-time employees get benefits in Massachusetts 

Yes, part-time employees are entitled to certain benefits, including sick leave and workers’ compensation:

  • Sick Leave: Under the Massachusetts Paid Sick Leave Law, all employees, including part-time workers, accrue sick leave.
  • Workers’ Compensation: Massachusetts law requires workers’ compensation coverage for all employees, regardless of employment status or hours worked.

Are employers required to offer 401k in Massachusetts 

No, Massachusetts does not mandate that employers offer a 401(k) retirement plan. Employers may voluntarily offer additional retirement plans, such as 401(k)s or other options, to remain competitive in the job market.

  • Good to know: Massachusetts has implemented the CORE Plan, specifically designed for small nonprofit organisations with 20 or fewer employees. The CORE Plan is a state-managed multiple employer 401(k) plan that allows eligible nonprofits to provide retirement benefits without the administrative burden of a private 401(k) plan.

It’s Easy To Manage Benefits For Employees In Massachusetts With Playroll

Paid and Unpaid Leave Policies in Massachusetts

Is vacation leave mandatory in Massachusetts? 

Massachusetts law does not require employers to offer either paid or unpaid vacation leave. However, if an employer chooses to provide vacation as a benefit, it must treat accrued vacation as earned wages. This means that any accrued, unused vacation time must be paid out upon termination of employment. Employers must also adhere to their own written vacation policies and cannot arbitrarily deny employees the right to use accrued leave.

What are Mandatory Leave Entitlements in Massachusetts

Paid Time Off In Massachusetts 

Massachusetts does not mandate general Paid Time Off (PTO) policies for vacation or personal days, leaving it to the discretion of employers. If an employer offers PTO, any accrued but unused vacation time must be paid out upon termination, as the state considers accrued vacation time as earned wages. Employers must adhere to their own written policies regarding PTO.

Maternity Leave In Massachusetts 

Massachusetts provides maternity leave under the Paid Family and Medical Leave (PFML) program. Eligible employees can receive up to 12 weeks of paid leave to bond with a new child, including through birth, adoption, or foster placement. PFML benefits are funded through employer and employee contributions, and the amount paid is a percentage of the employee's average weekly wage, subject to a cap.

Paternity Leave In Massachusetts 

Paternity leave is also covered under the PFML program, allowing eligible employees to take up to 12 weeks of paid leave for bonding with a new child. The leave applies equally to both parents and is funded similarly to maternity leave. Eligible employees receive partial wage replacement based on a percentage of their average weekly wage.

Sick Leave In Massachusetts 

Under the Earned Sick Time Law, all Massachusetts employees are entitled to sick leave. Employees accrue 1 hour of sick leave for every 30 hours worked, up to a maximum of 40 hours per year. Employers with 11 or more employees must provide paid sick leave, while smaller employers may offer it as unpaid. Sick leave can be used for the employee's or a family member's illness, medical appointments, or domestic violence recovery.

Military Leave in Massachusetts 

Massachusetts follows the federal Uniformed Services Employment and Reemployment Rights Act (USERRA), which requires employers to provide job-protected leave for employees who serve in the military. Under this law, employees returning from service are entitled to reinstatement in their previous position or a comparable one. Massachusetts law reinforces these protections, ensuring no penalties or loss of benefits for employees on military duty.

Jury Duty in Massachusetts 

Massachusetts law requires employers to provide leave for jury duty service, prohibiting penalties or retaliation against employees fulfilling this civic duty. The first three days of jury duty are paid by the employer; any additional days may be unpaid. Employees cannot be terminated or penalized for serving on a jury.

Parental Leave In Massachusetts 

Under PFML, Massachusetts provides 12 weeks of paid parental leave for bonding with a new child, covering both mothers and fathers. Additionally, the Massachusetts Parental Leave Act (MPLA) requires employers with six or more employees to offer 8 weeks of unpaid leave for the birth or adoption of a child. If both parents work for the same employer, they may share the 8-week leave under MPLA.

Small Necessities Leave in Massachusetts

Massachusetts offers Small Necessities Leave, granting employees up to 24 hours of unpaid leave per year for family-related obligations, including attending school activities or medical appointments for family members. This leave is available to employees working for companies with 50 or more employees and is in addition to PFML and sick leave.

Employment Termination Protocols in Massachusetts

Termination Process in Massachusetts 

Massachusetts follows an "at-will" employment policy, which means employers can terminate employees at any time and for any reason, as long as it is not an illegal reason (such as discrimination or retaliation). This policy allows both employers and employees to end the employment relationship without advance notice or justification, although certain exceptions and protections apply under federal and state law.

Notice Period in Massachusetts 

Massachusetts does not have a legal requirement for employers to provide a notice period before termination. Employers may terminate an employee without giving advance notice, though some employers may choose to include notice requirements in employment contracts or company policies.

Severance in Massachusetts 

There is no requirement for employers to provide severance pay in Massachusetts. Severance is only required if it is specified in an employment contract or company policy. Many employers choose to offer severance packages as a gesture of goodwill or to secure a release of claims from the departing employee.

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FAQS

FAQs About Hiring In Massachusetts

What is the minimum wage in Massachusetts?

As of January 1, 2024, Massachusetts’ minimum wage rates are:

  • $15.00 per hour.
  • Applies across all sectors.

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Type of Leave Time Period Mandatory Pay Status Eligibility Criteria
Annual Leave Not mandatory; employer discretion No Depends on company policy Not required by law; if offered, accrued vacation must be paid out upon termination
Maternity Leave Up to 12 weeks under PFML Yes Paid Employee must meet PFML eligibility: generally, 15 weeks of work and minimum earnings threshold